Consumers are turning to toys and video games as affordable avenues for nostalgia, comfort, escapism and social connection amidst global challenges and financial strain. Sales are set to soar by 14% in real terms between 2024 and 2029, reaching USD317 billion. Growth is being driven primarily by video games, while traditional toys and games are seeing only modest increases.
This report comes in PPT.
Toys and games are emerging as emotional anchors for consumers seeking comfort, nostalgia and connection amid global uncertainty. Video games are the primary growth engine, but traditional toys remain resilient, especially in markets where tangible play is valued.
Despite digital disruption, traditional toys continue to thrive in Western Europe and Latin America. Cultural preferences for physical play and nostalgia among kidults are sustaining demand.
Scientific/education is one of the fastest growing categories, with no dominant player. Meanwhile, the success of Pokémon card games is testament to the fact that established franchises can still increase their fan bases.
Consumers are prioritising affordability, leading to market share erosion for premium brands. Companies like PopMart and Steam Deck are gaining share by offering high perceived value and localised experiences.
Digital distribution is now the dominant channel, especially for video games. Traditional toy brands are also shifting to D2C to maintain relevance and deepen consumer engagement.
This is the aggregation of traditional toys and games and video games.
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