The toy market is booming. In 2023, the global stands at an impressive US $126 billion and it is set to grow at a rate of 2.55% annually over the next five years.
Despite the rise in living costs, the love for toys and games stays the same — consumers are clearly not holding back.
For retailers, this boom presents an opportunity and a challenge: navigating the saturated market.
To thrive, it's essential to narrow down the vast market into the most profitable segments.
What does this reveal:
So, to meet this evolving demand, you’ve got to have a versatile stock and that’s what a wholesaler can supply.
Trends in the Toy Industry
Whether you’re operating in the wholesale or retail sector, or both, knowing what’s trending will keep you ahead.
Barbie toys have been around for years but there has been a sudden surge in their popularity since the Barbie movie release.
The Barbie brand was valued at approximately $700 million in 2023, so by offering Barbie toys like dolls, makeup kits, doll houses, vehicles, etc., you can appeal to the young customer base and boost sales.
Playing digital games is a huge trend amongst children and adult gamers these days.
Games like Fortnite, Grand Theft Auto, Minecraft, or The Last of Us are the top games that people prefer to play these days on their PlayStations.
So, as a retailer, offering hit games in CD format in your stores can help you make good money.
And since playing these games requires gaming equipment like a PlayStation, remote controls, and headsets, equipping your store with these will let you cater to the gamer’s needs.
Sensory toys, vital for cognitive development, have seen a consistent demand.
Need proof of their popularity? Take a look at LEGO. Its market value reached approximately $11.8 billion in 2022.
And it’s not just kids who’re hooked, teenagers and adults like it too. Notably, for autistic children, these toys aren't just fun; they're pathways to enriching learning experiences.
Here’s what you should do: Broaden your inventory; stock up on diverse modeling toys like legos, Play-Doh, slime, putty, and building sets, to attract customers of varied demographics.
Environmental concerns are reshaping the toy and game industry. That is why parents have started to consciously buy eco-friendly, non-toxic toys for their children.
While plastic dominates the toy landscape, its recyclability is often questionable. This poses both an environmental challenge and a significant market opportunity.
Recognizing this shift in priorities, top manufacturers like Mattel, have recently started making toys with sugarcane-based materials and moving away from plastic packaging.
So, before buying any toys in bulk, check the material. Prioritize products made of biodegradable material.
Because that’s how you can position yourself as a responsible industry player and attract eco-conscious customers.
When it comes to children’s toys, safety is important. So, when buying wholesale toys and games, you must ensure every product adheres to strict safety standards.
All toys intended for children aged 12 or younger must undergo third-party testing by a CPSC-accepted testing laboratory and should have a Children’s Product Certificate.
However, if you’re sourcing toys from international markets, it’s not just about quality and cost. Ensure that the products meet the criteria set by the United States Customs and Border Protection (CBP).
Want to know what’s the biggest sales driver for retail toy stores? Kidults – adults with a childlike passion for toys and games.
Representing a staggering $9 billion annually, these grown-up kids (ages 12 or older) are the hidden gem that only a few are targeting.
As a retailer, why should you pay attention?
Takeaway: Kidults aren’t your average shoppers. They’re active on social media and always on the hit for that next nostalgic hit.
If they're not a key focus in your marketing strategy and across all sales channels, you're turning down some serious cash.
So, by targeting this group, you could potentially see a rise in profits.