Latin America Toy Market Research Report, 2027

Latin America is the lowest contributing region in the global toy market. Awareness of the cognitive and intellectual benefits of outdoor and sports toys, the influence of technology in promoting video games, rising demand for scientific and educational toys, and continuously rising personal disposable income levels are expected to boost the market growth in the coming years. Despite logistical limitations in the region, internet retail is expected to grow over the forecast period. The channel has seen acceleration with the popularization of "Black Friday" sales within the region, the rise in popularity of digital marketing, and consumer migration online looking for better prices and year-round promotional offers. Sales of traditional toys and games in Latin America rose slightly in value terms in 2018, following a decline earlier in the review period, owing to weakness in key regional economies. The expansion of licensing, improving economic conditions in 2018 and increasing unit prices helped the industry. According to the report, "Latin America Toy Market Research Report, 2027" published by Actual Market Research, the market had a USD 5 Billion market size in 2021. Further, the market is anticipated to grow at a more than 6% CAGR for the 2022–2027 period. In this report, Actual Market Research attempts to segment the market in Latin America on the basis of the age group that the toys cater to, the product categories, and the sales channels through which they are distributed in the market. Toys have been divided into three categories based on their age range: 0-8 years, 9-15 years, and above-15 years. The product categories include action figures, arts and crafts, building sets, dolls, games and puzzles, infant and toddler toys, youth electronics, outdoors and sports toys, plush toys, miniature vehicle replicas, and explorative toys. Actual Market research has tried to study each category and elaborate on them by also discussing the underlying economic and demographic themes. Latin America is the lowest contributing region in the global toy market, with a share of a little less than 5% in the world market. The Latin American toy market is highly unstructured and fragmented. As a result of the uncertain political landscape in the region, the toy market in Latin America faced severe challenges and struggled to generate value. Negative consumer sentiments and decreasing consumer confidence have plagued the growth of the Latin American toy market. With a lack of impetus provided to the middle-class strata of the region, the sales could not get the potential boost that they required. Sales were also impacted by reduced purchasing power, rising inflation, and a high unemployment rate. Household income in Latin American households grew at slow pace, causing consumers to be price-sensitive. The big players in the Latin America region also face intense competition against local and regional players due to price sensitivity and highly elastic demand for toys in the region. The leading companies operating in Latin America are Mattel, LEGO, and Hasbro, among many others. Traditional toys and games suffered in Latin America over the review period thanks to the critical economic situation overtaking markets such as Argentina and Brazil, and political uncertainty decreasing consumer confidence. Sales were impacted by reduced purchasing power, middle class retreat, rising inflation, and high unemployment rates, which crippled consumption. Market leaders Mattel, Hasbro, and LEGO saw increased competition and market share declines during the review period. Consumer price sensitivity contributed to strong competition from local players, which had invested in licensing to gain interest among consumers. The social and human cost of the pandemic has been immense and has added friction to the forecasting rates of the market. Over 16 Million people are estimated to have fallen into poverty. Inequality levels are expected to have increased in most countries, and employment levels have sunk below the pre-crisis levels. Data reflects that in the region, about 18 Million people have been infected and half a Million have lost their lives to the pandemic. The failure to control the second wave of infections and the imposition of new lockdowns has affected consumers' behavior and would drag the growth rates. Also, the weaker rebound in labor markets has made operations and growth in small and medium-sized as well as unorganized markets for toys highly dicey. However, the success of vaccination in containing the pandemic in other countries shed some light on the overall economy, and a well-structured support fiscal policy is expected to bolster the economy and the Latin American toy market. Major companies present in the market Hasbro Inc., The LEGO Group, Mattel, Brandstatter Group (Playmobil), VTech, Kids II, Inc., Artsana Group, Nintendo Co. Ltd. Considered in this report • Geography: Latin America • Historic year: 2016 • Base year: 2021 • Estimated year: 2022 • Forecast year: 2027 Aspects covered in this report • Latin America toy market with its value and forecast along with its segments • Country-wise toy market analysis • Various divers and challenges • Ongoing trends and developments • Five force models • Top profiled companies • Strategic recommendation Countries covered in the report • Brazil •Argentina •Columbia Segment covered in the report By Product • Action Figures & ACC •Arts & Crafts •Building Sets •Dolls •Games/Puzzles •Infant/Toddler/Preschool •Youth Electronics •Outdoor & Sports Toys •Plush •Vehicles •Explorative & Other Toys By Age Group •0-8 years •9-15 years •15 years and above By Distribution Channel •Online •Offline The approach of the report: This report consists of a combined approach of primary as well as secondary research. Initially, secondary research was used to get an understanding of the market and listing out the companies that are present in the market. The secondary research consists of third party sources such as press releases, annual report of companies, analyzing the government generated reports and databases. After gathering, the data from secondary sources primary research was conducted by making telephonic interviews with the leading players about how the market is functioning and then conducted trade calls with dealers and distributors of the market. Post this we have started doing primary calls to consumers by equally segmenting consumers in regional aspects, tier aspects, age group, and gender. Once we have primary data with us we have started, verifying the details obtained from secondary sources. Intended audience This report can be useful to Industry consultants, manufacturers, suppliers, associations & organizations related to pet care products industry, government bodies, and other stakeholders to align their market-centric strategies. In addition to marketing & presentations, it will also increase competitive knowledge about the industry.