Chinese Toy Industry Poised to Overtake U.S. Market


Javier SerranohobbyDB’s  Javier Serrano, aka Fjaviserr, explains why we should be looking towards China as the next potential leader of the toy industry. Read more of his wonderful guest posts here!

The toy industry has been going so fast in the last two decades, not only with all related to it, but for the size of the market.

At the beginning of 2000s it was so difficult to imagine that the primary market would not be the United States, but things are changing, and we must look to the East to find a rising market: China. And everything points that would be the leading sales market in the years to come.

After the pandemic the toy business in China has been consolidated with a linear growth, and according to several studies, the toy market in China is expected to surpass the U.S. $40 Billion industry by 2032.

Besides, this trend shows the expansion of the main sales channels, including Online, Chain Stores, Supermarkets and Hypermarkets.

Another relevant factor to bear in mind is that China changed its one-child-policy to allow families to have an additional child, and considering the increase of births since 2015, the potential market has been growing in parallel with the strong toy demand.

The top leading toys categories in China are interactive and intelligent electronic toys, plush and stuffed toys, assembled toys and chaowan (art toys). Later it has been experimenting with growth in the adult segment too, thanks to local retailers such as Pop Mart, introducing to the Chinese market a variety of this kind of collectibles that are changing the traditional consumer habits.

The success in the art toys segment has been followed by other relevant local companies such as the giant online company JD.com. And the fever for fashionable toys does not stop, and foreign brands such as Be@rbrick and Kaws are consolidating with strength in the Chinese market, starting a collecting age.

And of course, the Chinese toy companies are playing an important role too, not just in the local market just overseas, with well-known brands such as Hot Toys, Toys Gallery, Kidslogic, Devil Toys or A Good Company among others, offering a vast portfolio of high-quality products for the most demanding collectors.

On the other hand, key toy companies such as LEGO, Funko, Mattel and Hasbro are focusing on introducing into the Asian giant with aggressive strategies. As we could see a few days ago LEGO announced plans to add 40 new stores in China in the long term, and Funko in partnership with MINDstyle successfully offers its products at MINDstyle Mission Control with an immersive retail experience of 40,000 square meters.

And if we think it was a little, Trading Card Games and table games are growing rapidly there in the last few years, with some of the most popular series such as Pokémon Trading Card Game and Magic the Gathering, widening the offer of new products in the Asian giant.

Things are changing faster than ever, and China has become an important market for the toy industry, and it wouldn’t be crazy to think that the main collecting market will be there in the following years. Only time will tell. Until then, keep an eye on the East.

I hope you find this information helpful. Have an excellent week. Let me know if you’d like to know more in the comments below.

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