India's Toy Market Poised for 11-15% Annual Growth as Urbanization and Middle-Class Boom Drive Demand

Toys have long been a cornerstone of Indian culture and heritage, but the Indian toy industry has evolved significantly in recent years. The nature of play is rapidly changing, adapting to technological advances and shifting market demands. Today, the market is flooded with a diverse range of both traditional and modern toys, catering to an expanding consumer base.

According to Makreo Research, India's toy industry is undergoing significant transformations, driven by urbanization, changing consumer preferences, and shifts in the global trade landscape. The market's growth is fueled by demographic changes and evolving consumer demands, although India still faces challenges in positioning itself within the global toy trade.

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► Urbanization and Consumer Shifts Driving Growth in the India Toys Market
India's rapid urbanization is reshaping its toy market. By 2035, India is expected to have 675 million urban residents, second only to China, marking a significant increase from 483.1 million in 2020. As urban populations grow, disposable income also increases, influencing consumer purchasing behavior. This growing affluence is leading to a shift in the toy market, with consumers increasingly preferring innovative electronic toys, intelligent toys, and upmarket plush toys over traditional and lower-end battery-operated toys. This shift presents an opportunity for the industry to cater to an expanding middle class with more disposable income.

► India's Marginal Position in Global Toy Trade
Despite positive domestic trends, India holds a marginal position in the global toy trade. According to the Global Trade Research Initiative (GTRI), India accounts for only 0.3% of the world's toy exports and 0.1% of imports. India's toy exports saw a slight decline to USD 152.34 million in FY 2024, down from USD 153.89 million in the previous year.

► Key Insights on India's Toy Market
Makreo Research identifies several critical factors shaping the India Toys Market:
•
Increased Exports: India has emerged as a key player in the global toy trade, with exports rising by 61.4% in FY 2021-2022, while imports decreased by 70%. Europe and North America's high demand for toys presents an opportunity for India to boost its toy exports.

• The Rise of the Middle Class: The growing middle class in India, with significant purchasing power comparable to that of the European market, is driving demand for toys as both entertainment and education tools. The market is estimated to grow at an annual rate of 11-15%.

• Sustainability Trends: Growing awareness about sustainability is increasing demand for eco-friendly and sustainable toys, including STEM (Science, Technology, Engineering, and Mathematics) toys. Consumers are increasingly concerned about the environmental impact of non-biodegradable waste, driving a shift toward sustainable toy options.

• India's Protectionist Strategy: To protect the nascent toy industry, the Indian government has raised the customs duty on imported toys from 20% to 60%, with plans to increase it to 70%. This protectionism is helping to reduce imports and increase the demand for locally produced toys.

• Lack of International Awareness: Indian toy manufacturers often lack awareness of international trade opportunities and global trade fairs, limiting their export potential.

► Historical Export Trends and Trade Challenges in the Indian Toys Market
India's toy exports increased modestly from USD 129.6 million in FY 2020 to USD 177 million in FY 2022. However, the country's toy exports faced challenges, and in FY 2024, exports dropped to USD 152.34 million. In contrast, India's toy imports increased to USD 64.92 million in FY 2024, up from USD 62.37 million in FY 2023. This trend highlights the need for India to strengthen its position as both a producer and exporter of toys.

► Strategic Focus on Different Global Toy Categories
To better compete on the global stage, India's toy industry must develop targeted strategies for various toy categories. Key global segments include:
• Plush toys (USD 7 billion)
• Educational toys (USD 6 billion)
• Construction toys (USD 10 billion)
• Action figures and dolls (USD 10 billion)
• Electronic toys (USD 15 billion)
• Board games and puzzles (USD 9 billion)
• Outdoor and sports toys (USD 5 billion)

These diverse categories present both challenges and opportunities for Indian manufacturers, which must tailor their offerings to meet the specific demands of global markets.

► Geographic Distribution and Sectoral Composition of India's Toy Manufacturing Industry
India's toy manufacturing industry is widely distributed, with key concentrations in Uttar Pradesh, Maharashtra, Karnataka, and Tamil Nadu. The sector is largely driven by micro, small, and medium enterprises (MSMEs), with over 4,000 active manufacturing units. Approximately 88% of these units are based in the northern and western regions, reflecting a strong production network in these areas. These regional concentrations are crucial for meeting domestic demand and fostering innovation in India's growing toy market.

► Opportunities for Growth and Expansion
As India's toy market continues to grow, both domestic consumption and export opportunities provide avenues for expansion. The increasing urban population, coupled with rising disposable incomes, is set to drive demand for higher-end toys, offering substantial opportunities for innovation and market diversification. India's toy manufacturers need to adapt to these changes, creating products that appeal to both evolving domestic preferences and the global market.

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Makreo Research has published a study on Toy Market titled, "India Toys Market Size and Forecast (2018-2028) ". Market assessment has been carried out using qualitative and quantitative methods which suggests our well-rounded approach to analysis. This provides 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 combination with rising governmental support for the dwindling toy industry. The future outlook has been assessed while keeping various influencing factors into consideration and also to assess the expected opportunities in the market. 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.

► Segmentation Covered:
By Type of Player: Organized & Unorganized.
By Type of Product: Wheeled Toys, Video Games & Other Electronic Toys, and Plush & Plastic Toys.
By Product Segmentation: Plush Toys & Dolls, Electronic Toys, Board Games & Puzzles, Construction Games, Activity Toys, Ride-on Toys, Outdoor Toys, Others.
By Distribution Channel: Toys Specialty Stores, General Merchandise & Discount Stores, Hypermarkets & Supermarkets, Online Retail Stores and Others.

► Companies Discussed in the Report:
Funskool
Brainsmith
Buddyz
Clever Cubes
Shinsei
FunCorp.in
The Story Merchants
Win Magic Toys
Masoom Playmates
Triple Ess Toys
Khanna Toys
Aditi Toys
FunRide Toys
Peacock Toys
Skoodle
Hamleys

For more insights into the Indian toy industry and its growth prospects, reach out to Makreo Research, your trusted partner for market intelligence.
India Toys Market Size and Forecast (2018-2028) - Analysis By Player Type, Toy Category, Product Segmentation and Distribution Channel
https://www.makreo.com/report/india-toys-market-report-forecast-2018-2028

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Makreo Research, a top global market research and consulting firm, specializes in Syndicated Research, Custom Research, Consulting, and Market Surveys. Serving both domestic and international markets across developed and developing economies, we provide tailored insights to help businesses thrive amid complex global dynamics. Our client-centric approach ensures satisfaction by delivering context-rich market trends and strategies. Additionally, our Commercial Due Diligence services support investors and stakeholders in making informed decisions regarding acquisitions, mergers, and investments. Partner with Makreo Research to gain a competitive edge and confidently navigate today's dynamic business landscape.

This release was published on openPR.