Global toy market to reach $446b by 2032

It is driven by STEM demand and tech integration

The global toy market is projected to grow from $316.14b in 2024 to $445.97b by 2032, with a CAGR of 4.33%, according to a report by Credence Research Inc. 

Growth is being fuelled by rising demand for educational toys, digital features, and online retail access.

The report said that parents are increasingly buying STEM-focused toys that support learning and development.

At the same time, tech integration—such as AI, AR, and app-connected devices—is reshaping how children interact with toys.

E-commerce is expanding market reach and driving sales, whilst licensing deals with entertainment franchises continue to boost demand for character-based products.

Sustainability is also gaining traction, with more consumers choosing recyclable and eco-friendly options.

However, challenges remain. Screen-based entertainment is pulling children away from physical toys.

Additionally, tighter safety regulations are raising costs.

Economic uncertainty, tariffs, and shifting age preferences are also pressuring manufacturers.