Toys Market Report 2026

The toys market size has grown strongly in recent years. It will grow from $189.48 billion in 2025 to $201.55 billion in 2026 at a compound annual growth rate (CAGR) of 6.4%. The growth in the historic period can be attributed to increasing birth rates in emerging economies, growing consumer spending on children's entertainment, rising popularity of licensed character toys, expansion of retail distribution channels, increasing awareness of early childhood learning through play.

The toys market size is expected to see strong growth in the next few years. It will grow to $260.32 billion by 2030 at a compound annual growth rate (CAGR) of 6.6%. The growth in the forecast period can be attributed to growing demand for interactive learning toys, increasing adoption of sustainable toy materials, rising popularity of premium collectible toys, expansion of e-commerce toy sales channels, growing focus on child cognitive and motor skill development. Major trends in the forecast period include growing demand for educational and skill development toys, rising popularity of collectible and limited-edition toys, increasing preference for customizable and diy toy kits, expansion of outdoor and active play toys, rising demand for age-specific developmental toys.

The growing demand for infant and preschool toys is expected to propel the growth of the toys market going forward. Infant and preschool toys refer to play products designed for babies and young children that support early learning, sensory development, motor skills, and basic cognitive growth. The growing demand for infant and preschool toys is driven by increasing focus on early childhood development, as these toys support sensory learning, motor skill enhancement, and cognitive growth during the crucial formative years. Toys help infants and preschool children by supporting early learning and development through activities that enhance sensory perception, motor skills, cognitive abilities, and social interaction during their formative years. For instance, in December 2025, according to the Toy Association, a US-based toy industry association, that U.S. retail toy sales reached US$ 30.3 billion, rising 6% from 2024, indicating sustained consumer spending and continued strong demand across child-focused categories, including infant and preschool products. Therefore, the growing demand for infant and preschool toys is expected to drive the growth of the toys market.

Key companies operating in the toys market are prioritizing the development of advanced products, such as electronic and interactive toys, to improve child engagement, enhance learning experiences, and expand product innovation beyond traditional play patterns. Electronic and interactive toys refer to toys that use electronic components such as sound, lights, sensors, or digital features to enable engaging and responsive play. For example, in December 2025, Funskool, an India-based toy company, introduced its new electronic toys segment in the domestic market. The launch aimed to meet the rising consumer preference for interactive and skill-oriented play products. The new range includes technology-enabled toys that combine digital features with traditional play to create a more engaging experience for children. These toys are designed to support learning outcomes by helping develop cognitive abilities, creativity, and motor skills. With this expansion, Funskool strengthens its position in the fast-growing interactive and educational toys segment in India.

In March 2023, Crown Crafts, a US-based company specializing in infant bedding, toddler bedding, bibs, toys, and juvenile consumer products, acquired Manhattan Toy for $17 million. Through this acquisition, Crown Crafts intends to strengthen its footprint in developmental toys for infants and toddlers, expand its product range to include plush toys, dolls, and wooden toys, increase its customer base, and enhance its international distribution network. Manhattan Toy is a US-based company offering developmental toys for early childhood, including toys, dolls, plush items, games, wooden toys, activity centers, and books designed to promote learning through play.

Major companies operating in the toys market are Nintendo Co. Ltd., Bandai Namco Holdings Inc., Mattel Inc., Hasbro Inc., Spin Master Corp., MGA Entertainment Inc., VTech Holdings Limited, TOMY Company Ltd., Funko Inc., Jazwares LLC, Sanrio Company Ltd., tonies SE, Moose Toys Pty Ltd., Schleich GmbH, Ravensburger AG, Learning Resources Inc., Basic Fun Inc., Funskool Limited, University Games Corporation, Hape Holding AG.

North America was the largest region in the toys market in 2025. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the toys market report are Asia-Pacific, South East Asia, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the toys market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Taiwan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The toys market consists of sales of toy musical instruments, yo-yo, spinning tops, kites, slime toys, and fidget toys. Values in this market are ‘factory gate’ values, that is, the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors, and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

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