Consumers have more disposable incomes and their spending patterns
The Indian toys market to projected to grow at a CAGR of 12.2% during 2021-2026, according to the ResearchAndMarkets report on 20 April 2021. The market was valued at US$1.23 billion in 2020.
India has one of the largest young population in the world, owing to which, the toy industry has witnessed a rapid growth. The market is brimming with a wide array of both traditional and modern toys.
However, with evolving trends, there has been a shift from conventional toys towards innovative and hi-tech electronic toys. For instance, Lego has replaced wooden building blocks while Barbie dolls have now taken over traditional cloth dolls.
Around half of the 1.3 billion population is under the age of 25.
The increasing domestic demand for toys in India is also being catalysed by the country’s strong economic growth and rising disposable incomes. India has exhibited strong GDP growth rates for the last several years and now represents amongst the world’s largest economies.
Driven by this trend, the middle-class population has experienced strong growth in the region. Consumers have more disposable incomes and their spending patterns have also changed. This has resulted in a major shift from traditional, medium- to low-end battery-operated toys, towards innovative electronic toys, intelligent toys as well as upmarket plush toys.
There are a large variety of toys currently available in the market. The diverse product category ranges from traditional plush toys, construction and building toys, dolls, board games and puzzles to high-end electronic toys, educational toys, ride-ons, etc. There are toys which are domestically produced by small, medium and large manufactures and also those that are produced from renowned international brands. Each toy category has inexpensive and high-end versions.
Online sales channels have also recently witnessed a boom in India with the evolution of smartphones and other digital media. As quality and features of products can be discussed among shoppers, and prices can be compared on various platforms, online sales channels have appeared to be one of the fastest growing distribution channels for toys in India.
Some of the leading players operating in the market are Funskool; Lego; Mattel and Hasbro. #manufacturing #economy #investment /fiinews.com
