Educational Toys Market Size, Share & Industry Analysis, By Type (Arts & Crafts, Role Play, Games & Puzzles, Motor Skills, Musical Toys, STEM Toys, and Other Toys), By Age Group (Up to 4 Years, Between 4 and 8 Years, and Above 8 Years), By Distribution Channel (Supermarkets & Hypermarkets, Specialty Stores, E-commerce, and Others), and Regional Forecast, 2024-2032

The global educational toys market was valued at USD 61.60 billion in 2023 and is projected to grow from USD 66.22 billion in 2024 and reach USD 126.02 billion by 2032, exhibiting a CAGR of 8.37% during the forecast period. North America dominated the educational toys market with a market share of 38.18% in 2023.

Educational toys refer to those objects of play, designed to stimulate learning in children. Durability and safety are the key areas for consideration for all learning & education toys manufacturers globally. Given the market scenario within the learning & education toys space, it is imperative for industry participants to design products that can withstand the use and abuse by children within the age range for whom the toys are designed. Various rules and regulations aimed at toy safety govern the global market. For instance, U.S. manufacturers are required to comply with a mandatory list of rules and regulations stated under ASTM F963 – Standard Consumer Safety Specification for Toy Safety. At a macro level, the global educational toys market forecast will depend on establishing and accepting manufacturing regulations across countries.

Although COVID-19 has impacted the distribution of educational toys through physical/online channels, product sales through the online channel have increased considerably. This factor is attributable to heavy spending on innovative educational tools by many parents for their kids amid temporary closure of schools. With children across countries spending more time at home due to lockdown restrictions, the COVID-19 pandemic boosted the product demand. However, the COVID-19 pandemic caused considerable supply chain disruptions across countries. Since China is a prominent supplier of learning & education toys worldwide, various lockdown measures and an increase in import duty on Chinese toys in countries, such as India, hampered trade operations.

Educational Toys Market Trends

Increasing Preference for Environment-friendly Products to Favor Market Expansion

The rising demand for eco-friendly learning & educational toys is expected to encourage new players’ entry into the market during the forecast period. Disposability has historically been a major concern in the global industry, with buyers typically not tempted by out-of-date and second-hand toys. This factor has been driving the demand for green learning & education toys. Many innovative toymakers are designing products using green materials such as sugarcane, cardboard, and bamboo.  

Several prominent international players are launching sustainable products to cater to the rising demand from eco-conscious consumers. For instance, in January 2021, VTech, a Hong Kong, China-based electronic learning products company, launched the Choppin' Fun Learning Pot. The product comprises plant-based plastic, touch & learn nature ABC board and interactive wooden animal puzzle made from wood responsibly with Forest Stewardship Council certification.

Educational Toys Market Growth Factors

Increasing Popularity of Smart Toys to Accelerate Market Growth

Internet-connected tabletop games featuring high-tech innovations are becoming increasingly popular among an expanding population of tech-savvy consumers. A smart toy operates through embedded sensors and on-board electronics and has its own intelligence. Despite their high costs, smart toys are preferred over other learning & education toys for their ease of use and personalized instructive approach. 

The rising adoption of smart learning & education toys is likely to create a healthy demand for Science, Technology, Engineering and Math (STEM) toys worldwide throughout the forecast timeframe. STEM toys are designed to improve the problem solving skills and creativity in children in an interesting and engaging manner. With a rising number of parents focusing on making their children future-ready by purchasing smart toys, STEM toys are likely to witness a robust demand over the forecast period.

Government Support to Encourage New Players’ Entry

Government support within the toy manufacturing space is likely to favor industry growth throughout the forecast timeframe. Led by India, the global learning & education toys market is expected to witness significant government support across countries, with an increasing need to boost domestic toy manufacturing and increase adoption. For instance, in February 2020, the Government of India (GoI) approved the establishment of eight toy clusters in the states of Madhya Pradesh, Rajasthan, Tamil Nadu, Uttar Pradesh, and Karnataka. This move highlights the government’s intent to boost the domestic toy manufacturing sector in the foreseeable future.

RESTRAINING FACTORS

Rising Prevalence and Circulation of Unbranded and Counterfeit Products to Impede Product Demand

The rising prevalence and increasing circulation of unbranded and counterfeit educational toys have been impeding the global market growth. While a sizable number of counterfeit products can be easily identified, a wide variety of potentially dangerous products with sophisticated imitations may go undetected by shoppers/customers or retailers, thereby exposing children to toxic chemicals or materials (such as cancer-causing plastics). While there is a growing concern regarding the circulation of fake learning & education toys across countries, the majority of these products are known to exist in Asian markets such as China and India.

Educational Toys Market Segmentation Analysis

By Type Analysis

Increasing Need for Fine Motor Skill Development to Accelerate Product Sales

On the basis of type, the market is classified into arts & crafts, role play, games & puzzles, motor skills, musical toys, stem toys, and other toys. The motor skills segment held a dominant share of the market in 2023. Fine motor skill development is considered essential for babies, toddlers, and other older kids as the hand eye coordination enables them to do everyday tasks easily. Motor skills toys usually include construction toys such as building blocks

Motor skills toys are popular owing to various benefits such as hand-eye coordination enhancement, shape identification, color recognition, improvement of problem solving skills, gross & fine motor skill development, and cause & effect understanding. With toymakers focusing on achieving product differentiation, motor skills toys are likely to increasingly feature magnetic features for ease of use. A wide variety of motor skills toys are easily available across all distribution channels, ranging from local toy shops to specialty stores and e-commerce websites. The role play segment is the second-largest growing segment due to growing demand from nursery and pre-school kids demography.

By Age Group Analysis

Increasing Demand for Products Assisting in Developing IQ at Young age to Dominate the up to 4 Years Segment

Based on age group, the market is categorized into up to 4 years, between 4 and 8 years, and above 8 years. The up to 4 Years segment is anticipated to dominate the market over the forecast period. The increasing need to boost children’s Intelligence Quotient (IQ) from a tender age is surging the demand for educational toys in the 0-4 years age group.

From a manufacturing standpoint, choking is a major concern while designing learning & education toys for children in the age group of between 4 and 8 years. Furthermore, it is important for toymakers to employ flame resistant or flame retardant, non-toxic, and lead-free materials in their products while targeting the between 4 and 8 years segment. As children in the between 4 and 8 years age group can comprehend lessons better than children in the 1-4 years age group, it is imperative for brands to develop customized toys to build consumer interest in their products.

By Distribution Channel Analysis

Supermarkets & Hypermarkets to Regain Prominence due to Offering of Huge Discounts

Based on distribution channel, the market is categorized into supermarkets & hypermarkets, specialty stores, e-commerce, and others. Supermarkets & hypermarkets are the most popular distribution channels for learning & education toys. Hypermarkets, such as Walmart, are becoming more aggressive in the toy space by offering significant discounts, especially during the holiday season.

The specialty stores segment is likely to witness considerable growth in the coming years. The rising popularity of specialty stores is attributable to the mushrooming growth of company-owned brick-and-mortar stores. Personalization of services and stock availability are the key driving factors fueling product sales through specialty stores.

The e-commerce segment is expected to grow significantly during the forecast period. Several market players are launching new online stores to expand their reach. For instance, in April 2023, SkilloToys, a Bangalore, India-based toys & games company, launched its new online platform. According to the company, the new platform offers various educational games and toys for children aged 0 to 8.

REGIONAL INSIGHTS

The market is analyzed across North America, Europe, Asia Pacific, South America, and the Middle East & Africa.

The market size in North America stood at USD 23.52 billion in 2023. The North America market is primarily driven by the new levels of demand from consumers/shoppers and retailers alike for ‘Made in USA’ learning & education toys. From a retailing perspective, buying U.S.-made learning & education toys is beneficial and pragmatic as it translates into cheaper and faster product shipments than compared to shipments from China or Mexico. The U.S. is likely to remain as the most prominent regional market over the forecast period, creating lucrative market opportunities for internationally reputed and domestic players.

The Europe educational toys market growth is driven by the rising popularity of green/environment-friendly products, led by countries such as the U.K. and Germany. Educators and parents in the region are likely to contribute to adopt greener products owing to the health hazards/ issues associated with synthetic materials. The popularity of green products in the Europe markets is expected to encourage the entry of startups in the near term. Amid the COVID-19 pandemic, the U.K. emerged as the largest regional market in 2020.

Asia Pacific is expected to witness the fastest CAGR from 2023 to 2030. The growth of the market in Asia Pacific is led by China and India, the regional market is driven by the presence of a large customer base. The Asia Pacific market has been witnessing significant developments in the toys space over the years. In August 2020, the Government of India (GoI) expressed its intent to establish India as a global toy hub. Such initiatives will encourage other countries to boost their domestic learning & education toys production.

Several industry participants are launching new products to diversify their portfolios and boost regional sales. For instance, in October 2023, Toycra, an India-based toys company, launched a new range of educational toys, Open Ended. According to the company, the new range includes various toys, including a 4-in-1 sorter puzzle, number peg puzzle, rainbow stackers, and open-ended animal & vehicle puzzles.

China is the most significant regional market for learning & education toys. Internationally renowned toy companies have long considered China a key market in terms of both production and demand. The expanding middle-class population in Asian countries, such as China and India, is likely to encourage manufacturers to offer a wide variety of low-priced learning & education toys in the forthcoming years. The India learning toys market is estimated to register the fastest CAGR growth in Asia Pacific in the coming years. Strong government support in the toy manufacturing space paired with the rising popularity of the e-commerce sales channel is boosting the product demand.

The South America and Middle East & Africa markets currently account for a small fraction of the global market. Brazil is likely to emerge as a key market for learning & education toys in the near future. Brazil is among the few countries that has managed to retain the prominence of domestically produced learning & education toys. The major consumers of learning & education toys in Brazil are Sao Paulo, Minas Gerais, Santa Catarina, and Rio de Janeiro.

List of Key Companies in Educational Toys Market

Market Players to Focus on Online Marketing and Digitalization to Stay Competitive

Mattel and LEGO System A/S are expected to retain their positions as market leaders during the forecast timeframe. These market vendors benefit from a well-established distribution network spread across countries. For instance, Mattel currently operates in over 35 locations worldwide and its products are sold in more than 150 countries. On the other hand, LEGO System A/S currently sells its products in more than 40 countries. Mattel Inc. and Melissa & Doug are a few of the most prominent toy companies worldwide.

The key players of educational toys are increasingly focusing on marketing their products through the online channels. For instance, LEGO System A/S has been increasing its investment in the digitalization of its entire business to minimize the impact of the COVID-19 pandemic. As a result, the company witnessed 21% increase in consumer sales in 2020 compared to the previous year. Increased rivalry from international players over the past decade is crowding the market space, leading to intense price-based competition across domestic markets. The market also houses major distributors such as Johnco Productions Pty Ltd., an Australian distributor of educational toy brands.

List of Key Companies Profiled:

• Mattel (U.S.)


• LEGO System A/S (Denmark)


• Melissa & Doug (U.S.)


• Ravensburger (Germany)


• The Simba Dickie Group (Germany) 


• TOMY (Japan)


• JAKKS Pacific, Inc. (U.S.)


• GoldLok Toys (China)


• WowWee Group Limited (Canada)


• CocoMoco Kids (India)

KEY INDUSTRY DEVELOPMENTS:

• September 2023: LeapFrog, a subsidiary of VTech, launched a new collection of learning toys, including magic adventures, wooden, and infant & preschool lines.


• June 2021: Melissa & Doug, a U.S.-based company, launched Timeless Toys, its new marketing campaign, aimed at reaching more parents and introducing them to its products through digital platforms, including Hulu, YouTube, and Amazon.


• April 2022: LeapFrog Enterprises, Inc., an Emeryville, U.S.-based company offering educational toys, added new toys to its infant and preschool product range. The additions include My Pal Violet Smarty Paws, Ironing Time Learning Set, My Pal Scout Smarty Paws, and Lean Sweep Learning Caddy.


• December 2022: Funphix Toys, a U.S.-based kid's toys brand, updated its website to assist consumers in finding new educational toys. The brand provided a discount of 20% on its building sets toys to celebrate the website launch.


• January 2019:  The Simba Dickie Group, a German toy company, acquired Jada Toys, a U.S.-based manufacturer of preschool toys. The move was aimed at gaining a foothold in the U.S. toy market. Given the increasing competitive rivalry, prominent industry participants are expected to deploy mergers & acquisitions as their key competitive strategy in the coming years.


• April 2023: SkilloToys, a Bengaluru, India-based e-commerce company, opened its online store, offering educational toys for kids aged between 0 and 8 years.

REPORT COVERAGE

The market research report provides a detailed analysis of the market and focuses on key aspects such as leading companies, type analysis, age group, and key distribution channels. Besides, the report offers insights into the market trends and highlights key industry developments. In addition to the factors above, the report encompasses several factors that contributed to the growth of the market in recent years.

Report Scope & Segmentation