Toys Industry

Categories of Toys

Toys broadly can be classified / clubbed in two distinct categories based on their application & purpose

• EDUCATIONAL: ( Market share 25-30%) Toys & Games made out of Plastics and cardboard materials
• RECREATIONAL: (Market share around 70-75%) Recreational toys mainly include Electronic toys (remote control, video games), Battery operated toys (cars etc), Plastic toys (Dolls etc), soft toys, Mechanical pull back toys, Electronic toys & games and Battery operated toys.

Major Hubs

Major Hubs and Clusters in India for MSME engaged in toys manufacturing:

• Northern region: 70% and mainly in Delhi, UP
• Western: 18% and mainly in Maharashtra (Mumbai)
• Other regions: 12% Mainly in West Bengal (Kolkatta), Karnataka (Bangalore), Chennai

Salient Features

• The toy industry in India is concentrated mainly in the small and cottage sectors, with about 4000 manufacturers in all, Ahmedabad, Bangalore, Hyderabad and Pune are fast-emerging as toy manufacturing hubs.
• About 70 per cent of the toy market in India is unorganised.
• Education Technological Learning (ETL) which was earlier called Early Time Learning is taking root.
• The industry growth hovers between 10 and 15 per cent with the modern trade and organised players growing at 15 to 20 per cent.
• At present, the toy industry in India employs around 50 lakhs by 2015 people both in the organised and unorganised sector with the industry growing at 30 per cent or more by 2015.
• Experts suggest that the future of the Indian toy industry looks extremely promising, not only because it will generate employment, but also open doors for innovative toys to enter the market.
• Small toy shops cater to the masses, while branded ones like FisherPrice, Funskool, Hamleys, Lego and Mattel cater to the middle and high-class. Some large MNC toy manufacturing units like Mattel and Funskool have their presence in India. Funskool Toys is the largest toy producer in India.
• Plastic toys market in India which constitutes a major market share in overall toys market in India is expected to grow at a CAGR rate of 20% in the next 5 years.
• Wooden toys market in India which constitutes a minor market share in overall toys market in India is expected to grow at a CAGR rate of 25% in the next 5 years.
• Cloth & soft toys market in India is expected to grow at a CAGR rate of 18% in the next 5 years.
• Metal toys market in India is expected to grow at a CAGR rate of 15% in the next 5 years.
• Cardboard toys market in India controls second largest market share in entire toys market in India in terms of revenue. It is expected to grow at a CAGR rate of 22% in the next 5 years.
• Recreational toys market in India which constitutes a major market share in overall toys market in India is expected to grow at a CAGR rate of 16% in the next 5 years.
• Recreational toys market in India on the other hand is expected to grow at a CAGR rate of 26% in the next 5 years fuelled by increasing demand from pre-schools and Montessori schools.
• Currently around 5 per cent of the total market has been taken by eCommerce players.

As per market research report by: NOVONOUS

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