The global educational toys industry size is projected to grow substantially in the forthcoming years. The growth can be attributed to increasing adoption of Science, Technology, Engineering and Math (STEM) toys by parents for their kids. Fortune Business Insights™ provides this information in an upcoming report titled, “Educational Toys Market, 2021-2028.” As per the report, the global market generated USD 64.91 billion in 2020 and USD 68.81 billion in 2021. It is projected to rise to USD 132.62 billion by 2028, growing at a 9.83% CAGR over the forecast period 2021-2028.
Educational toys refer to toys designed for children that help stimulate learning. They are designed for educational purposes or for teaching kids to develop a particular subject or skill. The popularity of these toys is increasing as parents explore innovative solutions for their children to make learning more fun. STEM toys are thus experiencing robust demand across the world. These toys are designed to encourage children to learn more about these subjects by applying each of them to the real world. They help make learning more exciting for children and develop key skills. Stem toys are built to focus on creativity and problem-solving skills. They present clear goals that help kids to learn and have fun at the same time.
Favorable Government Initiatives to Propel Market Growth
Active initiatives undertaken by the respective governments are likely to drive new developments in the toys manufacturing space in the coming years. Led by India, the educational toys market growth will be influenced by various government efforts to accelerate local manufacturing and minimize dependence on foreign companies. For example, in February 2020, the Government of India approved the launch of eight new toy clusters in the states of Rajasthan, Madhya Pradesh, Uttar Pradesh, Tamil Nadu, and Karnataka. This step by the government highlights its intent to bolster the domestic toy manufacturing sector in the forthcoming years.
However, the growing circulation of unbranded and counterfeit products could impact the market dynamics to some extent.
North America to Dominate Led by Heavy Preference for ‘Made in USA’ Products
North America accounted for USD 24.98 million in the worldwide educational toys market share during 2020. The regional market is largely driven by emerging demand from consumers and retailers for ‘Made in USA’ products. For retailers, buying and selling locally manufactured toys is beneficial as it translates into faster and cheaper product shipment compared to shipment to other countries. Due to these factors, the U.S. could be a highly profitable revenue ground for educational toys manufacturers over the projected period.
The Europe market is driven by increasing penetration of eco-friendly products. Led by the U.K. and Germany, educators and parents are increasingly adopting greener products to minimize the risk of health issues involved with the use of hazardous and synthetic materials. The growing popularity of green products is anticipated to increase the number of startups in the region. In 2020, the U.K. accounted for the largest regional share.
Asia Pacific is expected to witness robust growth in the market in the next few years. China is considered an internationally renowned manufacturer of consumer products globally. The rise in the middle-class population in India and China fuels the demand for affordable educational toys. India is poised to exhibit a notable CAGR in the regional market during the forecast period. The regional growth will also be propelled by active government efforts to bolster the toys manufacturing sector and the proliferating e-commerce channel.