According to research and analysis by consulting and intelligence firm Ariston, the global puzzle toy market size in 2020 was 19.2 billion US dollars, and it is expected to reach 31.62 billion US dollars by 2026, with a CAGR growth rate of 7.12% during the forecast period. The process of children learning quickly with the help of puzzle toys is easier, which is expected to drive the growth of the global puzzle toy market. The recent trend of augmented reality (AR) learning toys may drive the demand for educational toys to grow year by year.
The learning toy market is witnessing growth due to the impact of digital consumerism on learning toy sales. Suppliers are accepting e-commerce distribution channels to increase market profits. Amazon, eBay, Tmall, and JD.com are the most well-known suppliers in the online retail field. With the increasing awareness of toy safety among people, authorities have introduced new regulations to ensure that materials are safe for end-users. Educational games that enhance cognitive skills are expected to grow the fastest, with a CAGR growth rate of 9.25% during the forecast period.
Several governments in different countries are constantly striving to reduce the use of plastic, which is likely to shift consumer consumption from plastic to sustainable materials that are easy to recycle. There are various retailers, such as Frida and Friedrichshaf, who focus on providing eco-friendly, eco-friendly, non-toxic products.
Business Case
In July 2020, the Alex brand was acquired by "Going Global First" and a new company, Alex Global Products, was established. Alex Global Products offers a wide range of brand combinations, including Alex Toys, Ideal, Backyard Hunting, ZOOB, and others.
In September 2020, Vtech announced the expansion of its Go Go smart wheel product line, launching a new interactive product STEM toys suitable for infants and young children. These help children enhance their imagination, promote happiness and fun.
The APAC region is expected to have the highest growth rate in 2020, at 10.92%, and the largest market share in the education toy market, at 28.10%.
The growth of STEAM categories in Japan has led to an increase in the country's share of puzzle toys.
Growth factors of puzzle toys
As parents hope their children understand various career choices, the number of inspirational and ambitious toys is rapidly increasing. Therefore, this niche market is driving the growth of global learning toys.
Playing with action characters and vehicles can develop children's imagination, allowing them to think outside the box, which is not as effective in online and video games. Therefore, the sales of these games are flourishing in the global puzzle toy market.
Brand loyalty is an important aspect for retail suppliers to grow in the learning toy market.
Intelligent toys are increasingly gaining power, enabling children to learn about the latest technologies and their functions. Suppliers are expected to develop intelligent models to gain growth opportunities in the global market.
Market segmentation of educational toys
Types of educational toys
Educator type
Age group
distribution channel
type
geography
Insights on categorizing educational toys by type
Academic toys account for the highest proportion among puzzle toys, at 36.69%.
The increasing awareness of children's education in APAC, Latin America, and Arab countries has driven the demand for educational toys in countries such as South Korea, Brazil, India, and South Africa. The development of STEM toys has made learning complex concepts easier and more interesting, and is expected to drive the demand for academic toys in various countries. During COVID-19, when most people were locked at home, some suppliers were trying to find ways to improve their product lines and expand their products in the market.
Insights on the Types of Educators
Classroom games have a huge share of 21.39% in the educational toy market.
Classroom toys promote learning in a fun way and prevent children from feeling bored. These institutions are increasing board games and toys to promote formal education. It is expected that this will drive the demand for classroom games in various schools from kindergartens to secondary schools in various countries.
Insights by age group
The 3-8 age group is the leader in the educational toy market, accounting for 34.47% of the market share.
Children in this age group need to develop several social and emotional skills. Games such as kitchen utensils, doctor's utensils, ice cream shops, and mechanical tools are still popular among children. These encourage physical activity and promote children's motivation. Therefore, the demand for such toys is expected to support market growth in the coming years.
Insights by Distribution Channel
The offline distribution channel dominates the market share of educational toys and is expected to achieve an incremental growth of 5.99 billion US dollars during the forecast period.
Visual marketing plays a prominent role in promoting offline sales of toys, as it can tempt children and influence them to persuade parents to buy toys. Offline sales have a high market share in India, Türkiye and other countries, where the reliability of online channels and e-commerce websites is low due to the prevalence of various concepts.
During the forecast period, the penetration rate of online multi-channel platforms is expected to be high. Suppliers are expected to expand their online presence through their e-commerce platforms and collaborations with other e-commerce companies. The emergence of the COVID-19 pandemic has boosted the global demand for educational toys.
Insights by category
Indoor puzzle toys lead the market with a 62.03% share
These all contribute to improving a child's intelligence level and knowledge foundation. Parents are increasingly aware of the importance of fast and innovative thinking, which contributes to the development of indoor educational games. These products do not contain harmful toxins and are environmentally friendly, which may increase the demand for indoor puzzle toys.
Geographic insights
The United States and Canada are the main countries driving demand in North America.
The majority of the population in the United States belongs to the age group under 20, which is a major contributor to the educational toy market. The people in this region are early adopters of any new technology. Manufacturers are constantly innovating and developing new games with the latest technology, which is increasingly popular among children. Due to the increasing emphasis on children's education, the United States holds the highest share of 58.94% in the global market. The literacy rate in this country is high, and parents place more emphasis on enhancing their children's critical thinking.
The main manufacturers in the global puzzle toy market include LEGO, Mattel, Hasbro, Vtech, Spin Master, Bandai Namco, and others. The current situation forces suppliers to change and refine their unique value proposition in order to achieve a strong presence in the learning toy market. The focus is shifting towards using environmentally friendly raw materials in the manufacturing of educational toys. It is expected that the supplier will shift production from plastic to recycled toys. With the increase of global technological innovation, competition will further intensify.