Global Outlook and Forecast of The Educational Toy Market in The Next Five Years

According to the research and analysis of Arizton, a consulting and intelligence company, the global educational toy market size will be 19.2 billion US dollars in 2022, and it is expected to reach 31.62 billion US dollars by 2027, with a CAGR growth rate of 7.12% during the forecast period. It is easier for children to learn quickly with the help of educational toys, which is expected to drive the growth of the global educational toys market. The recent trend of augmented reality (AR) learning toys is likely to drive the demand for educational toys year by year.

The learning toys market is witnessing growth owing to the impact of digital consumerism on the sales of learning toys. Vendors are embracing e-commerce distribution channels to increase profits in the market. Amazon, eBay, Tmall, and JD.com are the most prominent players in the online retail space. With growing awareness about toy safety, authorities have introduced new regulations to ensure materials are safe for end users. Educational games that improve cognitive skills are expected to witness the fastest growth at a CAGR of 9.25% during the forecast period.

The ongoing efforts by governments of several countries to reduce the use of plastics is likely to shift consumer consumption away from plastics towards sustainable materials that are easily recycled. There are various retailers such as Frieda and Friedrichiff that specialize in offering environmentally friendly eco-labelled non-toxic products.

Business Case

In July 2022, the Alex brand was acquired by "Going Global First", and a new company Alex Global Products was established. Alex Global Products offers products under an extensive portfolio of brands including Alex Toys, Ideal, Backyard Hunt, ZOOB and others.

In September 2022, Vtech announced the expansion of its Go-Go smart wheel product line, launching new interactive STEM toys for babies and toddlers. These help children develop their imagination and promote joy and fun.

The APAC region is expected to have the highest growth rate of 10.92% in 2022, and the largest market share of educational toys at 28.10%.

The growth of the STEAM category in Japan has led to a rise in the share of educational toys in the country.

Educational toys growth factors

Motivational and motivational toys are growing rapidly as parents want their children to learn about various career options. Hence, this segment is driving the growth of learning toys globally.

Playing with action figures and vehicles develops a child's imagination, which allows them to think outside the box, which isn't as effective in online and video games. Hence, sales of these games are booming in the global educational toys market.

Brand loyalty is an important aspect for retail suppliers to grow in the learning toys market.

Smart toys are increasingly gaining momentum, enabling children to learn about the latest technologies and their capabilities. Vendors are expected to develop smart models for growth opportunities in the global market.

Educational Toys Market Segmentation

Educational Toy Type

educator type

age group

distribution channel

type

geography

Insights by Educational Toy Type

Academic toys accounted for the highest proportion among educational toys, accounting for 36.69%.

Rising awareness about children's education in APAC, Latin America, and Arab countries is driving the demand for educational toys in countries such as South Korea, Brazil, India, and South Africa. The development of STEM toys that make learning complex concepts easy and fun is expected to drive the demand for academic toys across countries. During COVID-19, when most people are locked at home, some suppliers are trying to find ways to improve their product lines and expand their products in the market.

Insights from Educator Types

Classroom games hold a huge share of 21.39% in the educational toys market.

Classroom toys promote learning in a fun way that keeps kids from getting bored. These institutions are adding board games and toys to facilitate formal education. This is expected to drive the demand for classroom games in various schools ranging from kindergarten to secondary across the countries.

Insights by age group

The 3-8 age group is the leader in the educational toy market, accounting for a 34.47% share.

Children this age need to develop several social and emotional skills. Games such as kitchen sets, doctor sets, ice cream parlors, mechanical tools, etc. are still popular among children. These encourage physical activity and promote activity in children. Hence, the demand for such toys is expected to support market growth in the coming years.

Insights by Distribution Channel

Offline distribution channels dominate the educational toys market share and are expected to witness incremental growth of USD 5.99 billion over the forecast period.

Visual merchandising plays a prominent role in promoting offline sales of toys as it lures children and influences them to convince parents to buy the toy. Offline sales have a high market share in India, Turkey, and other countries where online channels and e-commerce sites are less reliable due to the prevalence of various perceptions.

The penetration rate of online multi-channel platforms is expected to be high during the forecast period. Vendors are expected to expand their online presence through their e-commerce platforms and partnerships with other e-commerce companies. The emergence of the COVID-19 pandemic has boosted the demand for educational toys globally.

Insights by Category

Indoor educational toys lead the market with a 62.03% share

These all help to improve children's IQ level and knowledge base. Parents are becoming more and more aware of the importance of quick and innovative thinking, which contributes to the development of indoor educational games. These products are free from harmful toxins and are environmentally friendly and are likely to increase the demand for indoor educational toys.

geographic insight

The United States and Canada are the major countries driving the demand in North America.

A majority of the U.S. population falls under the age group of 20 years, which is a major contributor to the educational toys market. People in this area are early adopters of any new technology. Manufacturers continue to innovate and develop new games with the latest technology, which are becoming more and more popular with children. The U.S. held the highest share of 58.94% in the global market due to increasing emphasis on children's education. The country has a high literacy rate, and parents pay more attention to enhancing their children's critical thinking.

Major players in the global educational toys market include Lego, Mattel, Hasbro, Vtech, Spin Master, Bandai Namco, etc. The current situation is forcing vendors to change and refine their unique value propositions to achieve a strong presence in the learning toys market. The focus is shifting towards the use of environmentally friendly raw materials in the manufacture of educational toys. Suppliers are expected to switch production from plastic to recycled toys. Competition will further intensify as global technological innovations increase.