Indian Toy Industry Grows Amidst Changing Market Dynamics and Government Support

The toy industry in India is experiencing significant growth and evolving to meet changing market demands. The emergence of metropolises like Ahmadabad, Bangalore, Hyderabad, and Pune as hubs for toy manufacturing is a positive sign for the industry. These cities are witnessing high sales growth, indicating a strong demand for toys in those regions.

The projected increase in affluent and elite consumers in Tier 2 and Tier 3 cities by 2025 suggests that the market for toys is expanding beyond the major metropolitan areas. This indicates a growing purchasing power and interest in toys among a wider population.

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◙ Toy Clusters
The establishment of toy clusters in Koppal, Karnataka, and Greater Noida, Uttar Pradesh, demonstrates the government's efforts to provide incentives and support for toy manufacturers. These clusters will likely foster collaboration, innovation, and growth within the industry.

◙ Gen I to Spur the Growth
It's interesting to note the reference to "Gen 'I'" accounting for 3.80% of the population by 2027. Assuming "Gen 'I'" refers to the new generation of Indian children, this indicates a significant demographic shift that will further drive the demand for toys in the coming years.

◙ Past Performance
According to Makreo Research, the Indian toy market saw positive growth of 25% in FY2019-20 owing to the formation of cluster in many states and setup of units by indigenous manufacturer in accordance with the government initiative. But due to the arrival of COVID-19 Pandemic, there was a significant dip in 2020, the growth rate fell by 27%.

COVID-19 had hit the industry in the most critical months of March and April. March being the year-end when maximum shipments are planned for export business and April being the biggest selling month for the domestic market. COVID-19 has affected shipments by the domestic toy industry. Some firms have even deferred their capex plans.

◙ Wheeled Toys Hold Majority of Share
India Toy Market by Type of Toys is divided into Wheeled Toys, Video Games & Other Electronic Toys and Plush & Plastic Toys. Wheeled Toys accounts for the major market share of 58%.
Wheeled toys, dolls' carriages, puzzles of all kinds, and recreational toys are among the key toy categories exported from India. The exports of wheeled toys are of significance, standing at USD 59.58 million of worth in 2022.

◙ Export of Toys
According to Makreo Research, toys can serve as one of the game changers in the Export Sector of India. Countries in Europe and North America have very high demands for toys and to fulfill it all, India can emerge as one of the biggest toy exporters. Due to the merger of Hong Kong with China, American / European Toy Manufacturers / Traders are looking for alternate manufacturing base in South East Asia, and this is the opportune time for India to attract them. All that is needed is innovation, technologically advanced methods, targeted advanced investments, brainstorming, and lots of research to ace this industry. And soon in no time, we will see Indian toys dominating the world market just as China's toys are doing in present.

◙ Top 3 Educational Toy Categories
► Puzzles - Puzzles help in increasing awareness and improving various problem-solving skills. Further, puzzles also go a long way in helping children learn about various shapes and colors. While completing a puzzle, the child needs to remember shapes, colors, and positions and thus think of strategies to complete them

► Books - Reading comes a long way in helping children develop skills required in school and life. Children love books as they help them to be imaginative by visualizing the stories, while also teaching them new words and concepts.

► Blocks - Blocks are the oldest toy that has been used since the early 1900s. They provide an opportunity for children to be highly imaginative and hence are part of children's toys even today significant growth has been seen in the Indian educational toy industry which was a negligible industry almost a decade ago.

◙ Government Initiatives to Promote the Toy Industry
► Toycathon 2021: The GOI along with the Ministry of Education, All India Council of Technical Education (AICTE), Ministry of Women and Child Development (MCWD), Ministry of Commerce and Industry, Ministry of Textile, and Ministry of MSME (Micro, Small, and Medium Enterprise) launched a joint initiative for the toy makers of India.

► Toy Cluster Program: Since a majority of the toy industry in India falls under the Micro Small and Medium Enterprise (MSME), they are mainly located on the outskirts of Delhi, Maharashtra, and Tamil Nadu with some small manufacturers in central India. With the help of the toy cluster program, the Government is planning to streamline the toy sector by taking it to a specific zone like SEZ (Special Economic Zones).

► Atma-Nirbhar Bharat: Atma-Nirbhar Bharat and Make in India scheme of the GOI, the government is aiming to build an environment that will allow the toy makers of India to manufacture toys in India completely without importing anything. Also, through this scheme, the GOI is urging netizens to buy local toys. This has shown positive results as toy imports have dropped to 70% and exports have risen to 61%.

Makreo research has published a detailed study on India Toy Market titled "India Toys Market Report and Forecast". We have covered a wide range of factors in our evaluation, including target population, age and income groups, and the impact of the country's economy on the India market.

Additionally, the focus on both qualitative and quantitative factors suggests our well-rounded approach to analysis. This provide readers with a more complete understanding of the Toy Market in India, including its past and present performance, as well as potential growth opportunities in the future.
The study's assessment of the pre and post-COVID scenarios is also particularly noteworthy, as the pandemic has had a significant impact on the Toy industry as a whole, the industry turned on its head as it grew to become a net foreign exchange earner. Covid-19 became a blessing in disguise in a combination with rising governmental support for the dwindling toy industry. Overall, this study could be a valuable resource for anyone interested in understanding the Toy market in India and its potential for growth in the future.

To know more: https://www.makreo.com/report/india-toys-market-report-forecast-2018-2028

► Period of Study-
2018-2022 : Past and Present Scenario
2023-2028 : Forecast

► Market Assessment-
The report examines opportunities for the toy market in India on various grounds, including, market revenue, India's share in the global toy market, market share by type of players , emerging startups, the share of small, medium, and large manufacturing units in India, government regulations, and many others.

► Country Assessed- India

► Competitive Landscape-
• Mergers & Acquisitions
• Start-ups
• Company Profile

Makreo Research and Consulting
Address- Office No 30, 2nd Floor, Crystal Plaza, Hiranandani Complex, Sec 7, Kharghar, Navi Mumbai, Maharashtra - 410210, India

Meetu Bhasin
Director - Research and Operations,
Phone Number-
+91-9619699069
Email Address-
info@makreo.com

Makreo is a Market research and consulting firm working closely with business conglomerates worldwide to help them in many aspects of driving their business growth and assist in making wise decisions with the help of our qualitative & quantitative market insights.

This release was published on openPR.