The Australian toys and games market is expected to register a CAGR of 2.87% during the forecast period (2020-2026).
Australia is also a very wealthy country, with a GDP of about USD 1.36 trillion. It became one of the wealthiest countries in the world in 2020. The Australian toy market is much larger than people generally assume when they consider the small population of the place. It is larger than Mexico or Italy and about the same size as Spain. Just like in the United States, the Australian toy market is highly seasonal.
Australia’s toy market is in its major characteristics very similar to the United States, the United Kingdom, and Canada. Thus, it is an easy country to enter for Western toy manufacturers. Safety is fundamental to the development and manufacture of toys, regardless of whether they are created by a research and development team at a manufacturing company, by a firm specializing in developing new products or by an individual investor on his or her kitchen table. The Australian Toy Association represents the toy industry on the committee responsible for developing and maintaining these standards.
The online video game sales industry has benefited from strong growth in internet connections over the past five years, as consumers increasingly purchased a range of products online, including video games. Current generation consoles that have integrated online stores have also supported revenue derived from video game sales. Faster internet speeds and the increasing accessibility of online shopping channels are poised support digital purchases of video games over coming few years.
The COVID-19 outbreak had affected the availability of products in toy and game retailing market. Logistical delays and reduced manufacturing activity in China is also anticipated to strongly inhibit retailers' ability to source industry products.
Key Market Trends
The Increasing Household Income is Driving the Market
With the decreasing gender pay gap and many women working part-time, household incomes have, on average, increased considerably over the last two decades. The gender pay gap narrowed over the last 40 years. The average income for couple households is higher, as many couple households are dual-earner households. Thus, with the increases in the overall rate of female labor force participation and more women working full-time, the average household incomes increased substantially over the past few decades. Household wealth has also increased.
In Australia, the average incomes of couples with dependent children are also higher than those for couple-only households, as couple-only households have a higher proportion of retirees, while couples with dependent children are more likely to be of working age. As the family is earning more in Australia, the buying frequency of toys and games for children for their entertainment and learning/education purpose has seen a surge, which is further driving the toys and games market. Major Australian customers buy toys and/or games in an average four-week period.
Increasing Social Media Penetration and Engagement is Driving the Market
Australians are reasonably avid consumers of social media. In January 2021, 20.5 million Australians, were active users of social media, with 79.9% of the overall Australian population with social media accounts. In demographic terms, 96.4% of Australian internet users between 16 and 64 accessed a social media network or messaging service in December 2020. YouTube (78.2%) and Facebook (77.7%) are tied for the most popular social media platform in Australia. 33% of Australians state they use Social Media when looking for information about a brand. Australians spend an average of 1 hour 48 minutes per day on social media. 30% more Australians trust their social media news sources than those in the United States but only 73%, as many Australians trust their social media news sources than those in the Netherlands.
Australian digital advertising grew by an enormous 25.8% to the end of the first quarter of 2021. This is around 2.5 times the expected global spend growth, which is expected to be 10.6%. Australia is estimated to be the 5th largest Social Media Advertising market in the world. The growing demand for themed toys and games is being driven by social and mainstream media, featuring cartoon characters from cult TV shows and movie franchises, such as LEGO and Transformers.
Australia's toys and games industry is in a constant state of flux, with manufacturers and retailers striving to find new ways to entertain and educate their audience of demanding children. Some of the most important players in Australia's toys and games market are Amazon Australia, K Mart Group, Woolworths Group Limited, Myer, Toy Mate, David Jones, Mighty Ape, Toyworld, eBay, EB Games, JB Hifi, and Other Prominent Retailers.
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Table of Contents
1.2 Scope of the Study
4.2 Market Drivers
4.3 Market Restraints
4.4 Market Opportunities
4.5 Technological Innovations and Developments
4.6 Porter's Five Forces Analysis
4.7 Insights into Consumer Behavior Analysis
4.8 Impact of COVID-19 on the Hospitality Industry
5.1.1 Card Games
5.1.2 Construction Sets and Models
5.1.3 Dolls and Stuffed Toys
5.1.4 Plastic and Other Toys
5.1.6 Toys for Toddlers and Kids
5.1.7 Video Game Consoles
5.2 By Distribution Channel
6.2 Company Profiles - Retailers
6.2.1 Amazon Australia
6.2.2 K Mart Group (Kmart, Target and Catch)
6.2.3 Woolworths Limited (Big W)
6.2.5 Toy Mate
6.2.6 David Jones
6.2.7 Mighty Ape
6.2.10 EB Games
6.2.11 JB Hifi
6.2.12 Other Prominent Retailers (Online Toys Australia, Kogan,Temple & Webster, Costco, etc.)*
A selection of companies mentioned in this report includes:
- Amazon Australia
- K Mart Group (Kmart, Target and Catch)
- Woolworths Limited (Big W)
- Toy Mate
- David Jones
- Mighty Ape
- EB Games
- JB Hifi
- Online Toys Australia
- Kogan,Temple & Webster