The Toys and Hobby market comprises diverse goods people buy for their leisure activities. The Toys and Hobby market is divided into three segments: Toys and Games, Musical Instruments and Sports Equipment. The worldwide revenue of US$466 billion in 2022 is expected to increase to US$647 billion by 2027.
The Toys and Hobby market includes traditional toys and games for children and adults, video games consoles, various musical instruments and their accessories, equipment for indoor and outdoor sports activities, as well as equipment for fishing. The increase in disposable income as well as the growing awareness of a balanced work and private life, encourages consumers to spend more money on their hobbies. Overall, Toys and Hobby products generated US$466 billion in revenue worldwide in 2022, and by 2023, this is forecast to rise to US$502 billion. The Toys and Games segment accounts for the largest share of the Toys and Hobby market, representing more than half of the market’s revenue. It includes a wide variety of products intended mainly, but not exclusively, for the entertainment of children. The Toys and Games segment is predicted to amount to US$383 billion by 2027, up from US$278 billion in 2022. The segment is driven by an increase in online sales, a rise in demand for eco-friendly and high-quality toys, a fierce price competition and rapidly changing consumer preferences. The constant growth of the Sports Equipment segment is fueled by an overall trend toward an active lifestyle, increasing awareness of health and fitness issues, growing participation in sports activities. In 2027, the Sports Equipment segment revenue is forecast to reach approximately US$205 billion, a steady increase from about US$150 billion in 2022. In this same year, the segment accounted for 32% of the worldwide Toys and Hobby market revenue. The global musical instruments industry is heavily influenced by different cultural tastes in music. The Musical Instruments segment is the smallest segment of the Toys and Hobby market. Worldwide revenue accruing from this segment is forecast to increase by approximately US$21 billion between 2022 and 2027. The toys and hobby industry is dominated by a few key players such as LEGO, Mattel, Amer Sports and Yamaha Corporation. With more than US$8 billion in 2021, LEGO had the highest toy sales among the companies, followed by Mattel with US$5.5 billion. The following trends currently shape the market and are the industry’s answer to a changing consumer interest:
STEM toys, aimed at teaching kids tech skills and math in an amusing way
Games which leverage on virtual and augmented reality