Global Toy Market reaches $123 Billion as Play expands beyond children

The global toy industry reached $123 billion in annual sales in 2025, growing 8 percent year over year, according to Circana’s 2026 Global Toy Report. The company said the industry is undergoing a transformation as play increasingly becomes a cross-generational activity extending beyond traditional child consumers.

Fastest growth: consumers aged 15 and older

While children under the age of 10 still account for more than 65 percent of global toy sales, their share of the market is gradually declining. The fastest growth is coming from consumers aged 15 and older, a segment that now represents nearly 20 percent of total toy sales. Spending by this group has more than doubled since 2020, driven by demand for collectibles, nostalgia-related purchases and hobby-based play experiences.

Regionally, all major markets recorded growth, with Asia and Oceania leading expansion. Asia has surpassed Europe to become the world’s second-largest toy market, while North America remains the largest, accounting for 41 percent of global toy sales.

Benefitting from population growth

Circana said emerging markets are benefitting from population growth, urbanization and rising spending per child, while developed markets are being shaped by fandom-driven purchases and premium products that are broadening the definition of play.

Influence of digital behavior on the industry

The report also highlighted the influence of digital behavior on the industry. Generation Alpha, described as the first fully digital-native generation, increasingly discovers toys and makes purchasing decisions through online content, creators and social media platforms. As a result, trend cycles are accelerating and the ways products gain relevance are evolving.

Traditional boundaries are becoming less distinct

At the same time, traditional boundaries between categories are becoming less distinct, with toys increasingly overlapping and competing with sectors such as video games, fashion and beauty. Licensed toys, building sets, games, collectibles and plush products were identified as some of the strongest-performing segments.

According to Circana, the future growth of the industry will depend on how effectively brands adapt to a broader and more flexible definition of play while continuing to balance innovation, engagement, creativity and entertainment.

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Source: https://www.circana.com/post/global-toy-market-hits-123b-as-play-expands-across-ages-and-markets