Construction Toys Market Analysis Report By Product, By Raw Material, By Distribution Channel, By Region And Segment Forecasts From 2019 To 2025

Industry Insights

The global construction toys market size was valued at USD 10.40 billion in 2018 and is expected to grow with a CAGR of 9.5% during the forecast period, 2019 to 2025, owing to rising demand for construction toys among children and young age group. Moreover, increasing benefits from these games such as the development of high intelligence and cognitive skills are anticipated to be the key driving factors for market growth. Rising product awareness among parents and teachers for enhancing pre-school children's creativity and spatial skills are anticipated to fuel the demand for the market in forthcoming years. Furthermore, the growing use of construction toys for improving children learning abilities is anticipated to aid the growth of the market.

The key manufacturers of construction toys have focused on improving the designs, shapes, and quality of the construction toys. This has led to the growth in demand for the product over the recent past. However, parents are getting more concerned about the harmful raw material used in the construction of these toys which could cause various health problems among children. This is a key factor that is expected to hinder market growth in the next few years.

Construction toys are mainly used for concept construction purposes, where a set of components are given to children and they are required to develop designs and build objects. This process helps children in increasing their intelligence and cognitive level, which is anticipated to fuel the demand for the market during the forecast period, 2019 to 2025. Toys containing PVC, bisphenol A, and plasticizers like phthalates and adoptees as a component are not appropriate for the children and can cause various health problems, which is anticipated to slow down the market growth in forthcoming years.

The construction toy manufacturers are continuously focusing on developing new raw material, which comprises low toxicity and water resistance properties. This is anticipated to create new opportunities for the market during the forecast period, 2019 to 2025. Additionally, the rising investment made by the FMCG companies on enticing packaging, advertisements, and distribution channel, especially online channels has increased the visibility and availability of products. This is projected to drive the product demand in the forthcoming years.

Product Insights

The product segment has been bifurcated into bricks & blocks, tinker toys, and others. The bricks & blocks segment accounted for the largest market share, in 2018 and is expected to witness steady growth over the forecast period, 2019 to 2025. Rising product awareness among the younger generation and their advantages such as improvement in learning, cognitive ability, and increasing problem-solving ability are anticipated to be the key driving factors for the segment growth. Additionally, the rising investment made by the key manufacturers on product development is anticipated to create a huge opportunity for the market in the upcoming years.

The tinker toy segment is anticipated to see the fastest growth with a CAGR of 10.0% during the forecast period, 2019 to 2025. Tinker toys are widely in demand and offer a wide range of construction scope. Moreover, these products constitute pulleys, sticks, caps, spokes, and couplings, which increase the imagination and critical thinking among children. Therefore, it is projected to fuel the demand for the market during the forecast period, 2019 to 2025.

Raw Materials Insights

The raw materials segment has been bifurcated into wood, polymer, metal, and others. The wooden segment has captured more than 35% of the market share, in 2018 and is anticipated to dominate the construction toy market during the forecast period, 2019 to 2025. Wooden products have gained tremendous popularity, due to their non-toxic and longer durability features. Moreover, wooden toys have excellent colors and texture, which attract and sparkle children with interest, which will propel the segment demand in upcoming years.

The polymer segment is anticipated to see the fastest growth with a CAGR of 10.0% during the forecast period, 2019 to 2025. This high growth rate can be attributed to the rising adoption of polypropylene (PP) polymer in making toys, due to its durability and elasticity. Moreover, the rising use of thermoplastics, owing to its high strength, bright colors, and lightweight are anticipated to drive the segment growth. Additionally, these products can be used in place of wood, which is expected to reduce deforestation and is anticipated to fuel the market demand in forthcoming years.

Distribution Channel Insights

The distribution channel has been segmented into a convenience store, hypermarket & supermarket, and online distribution. The hypermarket & supermarket store segment held the largest market share, in 2018, owing to the rising availability and accessibility of the product. Moreover, an increasing number of retails stores, extensive investments in promotional campaigns, and the growing number of customer services are anticipated to aid the market growth. Furthermore, in retail stores, customers can check the quality of the product and even try the product. Additionally, various discount offers, return policies, and the presence of sales peoples at the stores are the key driving factors for the segment growth.

The online segment is expected to see significant growth during the forecast period, 2019 to 2025, owing to the growing number of e-commerce service providers such as Amazon, Flipkart, and Alibaba. Furthermore, rising internet penetration and the growing adoption of smartphones among the younger generation is a key factor driving the market growth. E-commerce offers the latest and wide assortment of products, which is projected to bolster the segment growth. Additionally, it can be seen that working-class parents prefer to shop online instead of visiting stores in person.

Regional Insights

North America has captured more than 30% of the market share, in 2018. The use of construction toys in kindergartens has led to a high revenue share in the region. Researchers and children's psychologists from various US universities are using construction toys to assess the children's cognitive skills, which are anticipated to fuel the product demand in the upcoming years.

Asia Pacific market is expected to grow with the fastest CAGR during the forecast period, 2019 to 2025, owing to increasing consumer spending power in developing nations like Thailand, China, India, and Indonesia, which is contributing to the growth of Polymer products by improving the health hygiene. Additionally, parents are becoming more aware of the construction toy advantages, which are projected to fuel the market demand in the coming years. Furthermore, the rising number of distribution channels and product awareness among the younger generation is anticipated to aid the market growth.

Construction Toys Market Share Insights

Key companies in the market are Magformers; Tegu; The LEGO Group.; Spin Master Ltd.; PlayMonster LLC.; Mattel; Schylling Inc.; Nanoblock; Polydron Limited and KnuckleStrutz. The key manufacturers are continuously developing new products and increasing their product portfolio and offerings. Additionally, with the help of key strategies like mergers & acquisitions, strategic partnerships, and product development, companies are expanding their product reach and gain a competitive advantage over their competitors.

Report Scope

Segments Covered in the Report

This report forecasts revenue growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2015 to 2025. For the purpose of this study, Million Insights has segmented the global construction toys market report on the basis of product, raw materials, distribution channel, and region:

• Product Outlook (Revenue, USD Million, 2015 - 2025)
    • Bricks & Blocks
    • Tinker Toy
    • Others

• Raw Materials Outlook (Revenue, USD Million, 2015 - 2025)
    • Wood
    • Polymer
    • Metal
    • Others

• Distribution Channel Outlook (Revenue, USD Million, 2015 - 2025)
    • Supermarkets & Hypermarkets
    • Convenience Stores
    • Online

• Regional Outlook (Revenue, USD Million, 2015 - 2025)
    • North America
        • U.S
    • Europe
        • Germany
        • U.K.
        • France
    • the Asia Pacific
        • China
        • India
    • Central & South America
        • Brazil
    • Middle East & Africa