Toys and Games in Asia Pacific

Delivery

This report comes in PPT.

Key findings

Strong bounceback by the Chinese toys and games market in 2023

There was a strong rebound in toys and games sales in China in 2023, following the decline seen a year earlier due to the resurgence of COVID-19 cases and the reintroduction of lockdowns. Chinese consumers have also been showing a growing appreciation for toys that reflect their cultural identity, with local players looking to meet this demand.

Kidults will be an important consumer segment for future value growth

With birth rates declining in the region’s biggest markets, kidults will continue to become an increasingly key target for toys and games players, particularly given adult consumers generally have greater spending power. Faced with a shrinking children’s market due to low birth rates, players are therefore looking to tap into adult consumers’ childhood nostalgia.

Offline retail needs to offer experiential visits in the face of the e-commerce threat

As e-commerce inevitably expands its share of distribution, it will be important for offline stores to create fun spaces to encourage consumers to visit and spend time. Making visits experiential is becoming more common, and, as many players follow a similar path, it will be important to differentiate with unique experiential solutions, as well as orthodox ones.

Dynamic growth expected for video games sales in India

Video games is expected to see dynamic growth in India over the forecast period, boosted by the increasing popularity of e-sports, which is, in turn, supporting the uptake of mobile gaming among users. Other factors, such as rising smartphone penetration and the availability of cheap smartphones/data plans, are also expected to boost demand.