The latest toys and games data from Euromonitor forecasts that the global market will reach 75 billion euros in retail sales by 2018.
Global toys and games will grow by 3 percent annually between 2013 and 2018 and North America and Western Europe are expected to decline while developing markets will drive global growth.
Research conducted by in-country analysts reveals that the global toys and games industry struggled to grow in 2013. In fact, strong growth for traditional toys and games products has remained elusive for the industry since 2010 due to the recession and a general shift in spending toward video games.
The story from emerging markets however is much more positive. Emerging markets in Asia Pacific, Eastern Europe and Latin America all achieved sales growth rates that exceeded the global average in 2013. Disposable
Looking at current trends in the toys and games market, the next five years provide reasons to be both optimistic and concerned. Demographically, key markets in North America and Western Europe are experiencing aging populations, which is decreasing the market for traditional toys. In addition to this, young populations in these countries are playing video games at an ever-younger age.
However, while video games are a direct threat to traditional toys, they also provide new avenues for the industry. Manufacturers can create new toy products that work in conjunction with video game technology, such as Skylanders. Furthermore, video games have become huge brands themselves, with some receiving audience figures that rival numbers those of top Hollywood films.
Meanwhile, the positive performance of traditional toys and games products in emerging markets is set to continue. Asia Pacific, Latin America and Eastern Europe are likely to be more reliable markets for retailers and manufacturers over the next few years, making them lucrative markets for the industry to target.
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