Toys Industry

Indian Toys Market

The Indian Toy Industry has witnessed a lot of changes over the last few years with regard to categories of toys, innovation, eye-catching design and other aspects. The domestic market is estimated at Rs. 5750 Crores per annum at present (factory produced toys by MSMEs & large units plus imports) and scaling up @ 10-15% on yearly basis. The Global market for toys which at the present level is estimated at US$ 80 billion ( Rs 4.8 lakh crores) is still not tapped by our MSME toy manufacturers as exports from India for toys presently constitute less than 0.08 percent of this huge market. The world market for toys is currently dominated by China that produces toys worth US$ 29 billion every year (almost 36 percent share of total world market for toys) out of which US$ 17 billion worth of toys are consumed in China itself and balance toys worth US$ 12 billion per annum are exported to other parts of the world with major destinations being USA, EU etc.

The Indian toys market size was valued at USD 2.09 Billion in 2025 and is projected to reach USD 4.74 Billion by 2034, growing at a compound annual growth rate of 9.53% from 2026-2034.

The Indian toy market is registering significant growth due to the increase in disposable income levels, a substantial youth population, and the growing awareness of child development through play amongst parents. The Indian toy industry comprises various product segments like plush toys, electronics toys, learning games, construction toys and outdoor play equipment.

Key Takeaways and Insights:

By Toy Type: Plush toys lead the market with a share of 16% in 2025, driven by enduring consumer preference for soft, cuddly toys that offer comfort and companionship to children while serving as safe play options for various age groups.

By Gender: Unisex toys dominate the market with a share of 58% in 2025, owing to growing parental preference for gender-neutral products that promote inclusive play experiences and can be shared among siblings and playmates.

By Distribution Channel: Online dominates the market with a share of 38% in 2025, fueled by expanding e-commerce penetration, convenience of doorstep delivery, and access to wider product assortments across tier-two and tier-three cities.
By State: Maharashtra leads the market with a share of 20% in 2025, supported by the presence of major toy manufacturing units, strong retail infrastructure, and a large consumer base in metropolitan areas.

The Indian toys market is experiencing a transformative phase driven by favorable government policies, shifting consumer preferences toward educational and STEM-based toys, and rapid e-commerce expansion. In December 2025, Funskool India officially entered the electronic toys segment, signaling how domestic manufacturers are innovating to meet changing demand and expand product offerings in tech‑driven play experiences. The implementation of quality control regulations has enhanced product safety standards while supporting domestic manufacturing capabilities. Parents increasingly prioritize toys that facilitate cognitive development, motor skills, and creative thinking among children. The growing middle-class population with rising disposable incomes continues to fuel demand across urban and semi-urban markets. Additionally, the influence of media, entertainment franchises and character-licensed products is strengthening consumer engagement and driving premiumization trends across the market.

Indian Toys Market Trends:

Rising Demand for Educational and STEM-Based Toys

Indian parents are increasingly investing in toys that combine entertainment with educational value, driving demand for STEM learning kits, coding robots, and interactive puzzles. In 2025, this shift is reflected in the growing popularity of AI‑powered educational toys that adapt to children’s learning pace, making cognitive play more engaging and personalized. The trend highlights heightened awareness of early childhood development and the importance of nurturing problem‑solving, analytical thinking, and cognitive skills through play-based learning.

E-Commerce Expansion and Digital Retail Transformation

The Indian toys market is undergoing a transformative phase driven by supportive government policies, growing demand for educational and STEM-based toys, and rapid e-commerce growth. Online retail platforms are expanding access to diverse toys in smaller cities and rural areas, offering convenience, competitive pricing, and detailed product information. With the India e-commerce market valued at USD 129.72 billion in 2025 and projected to reach USD 651.10 billion by 2034 at a 19.63% CAGR, combined with quality control and safety regulations, consumer trust and market expansion are set to strengthen.

Sustainable and Eco-Friendly Product Innovation

Environmental consciousness is increasingly shaping toy purchasing decisions, with manufacturers offering products made from recycled materials, sustainable wood, and non‑toxic components. According to reports, prime minister Narendra Modi recently urged Indian toy makers to use less plastic and adopt eco-friendly, recyclable materials, highlighting a national push for sustainable production. This shift aligns with growing consumer demand for safe and responsible toys while meeting evolving regulatory standards for child safety and environmental sustainability.

Market Outlook 2026-2034:

The Indian toys market is positioned for sustained double-digit growth throughout the forecast period, supported by favorable demographics, government initiatives promoting domestic manufacturing, and evolving consumer preferences toward quality products. The Make in India initiative and Quality Control Orders are strengthening the domestic manufacturing ecosystem while reducing import dependency. The market generated a revenue of USD 2.09 Billion in 2025 and is projected to reach a revenue of USD 4.74 Billion by 2034, growing at a compound annual growth rate of 9.53% from 2026-2034.

Toy Type Insights:

Plush Toys
Electronic Toys 
Games and Puzzles 
Construction and Building Toys 
Dolls 
Ride-Ons 
Sports and Outdoor Play Toys 
Infant/Pre-school Toys 
Activity Toys 
Other Toys

The plush toys lead with a market share of 16% of the total Indian toys market in 2025.

The plush toys segment remains the market leader due to strong consumer preference for soft, huggable products that offer comfort and emotional support. Appealing to all ages, they serve as companions, sleep aids, and decorative items. Indian companies are innovating, for example in July 2025, Ultra Soft Toys launched its ‘Cuddle & Calm’ weighted plush range for emotional wellness and sensory comfort, alongside cultural and festive lines. Character licensing further boosts appeal and collectability.

Manufacturers are enhancing their offerings with premium materials, interactive features, and customizable options to differentiate in a competitive market. Safety certifications and non-toxic materials have become key considerations for parents, prompting improvements in product quality across the segment. These innovations not only build consumer trust but also support premium pricing strategies for branded toys, reinforcing their value and appeal in India’s growing toy market.

Gender Insights:

Unisex Toys 
Toys for Boys 
Toys for Girls

The unisex toys dominate with a share of 58% of the total Indian toys market in 2025.

The unisex toy category is leading in the market because of the shift in mindset among parents regarding encouraging children in a gender-free manner with activities and skills, thus avoiding any male/female stereotypes. The category consists of construction toys, educational toys, puzzles and outdoor play materials, so it offers a versatile choice suited to children of all ages.

The demand for products that involve equal learning opportunities has encouraged manufacturers and retailers to produce inclusive toys that break beyond the boundaries of gender. The benefits are not only confined to helping the children of both genders play together, but also to providing a practical advantage by allowing children of different genders to share toys.

Distribution Channel Insights:

Specialty Stores 
Supermarkets and Hypermarkets 
Online 
Others

The online dominates with a market share of 38% of the total Indian toys market in 2025.

The online distribution channel has become the leading sales platform, driven by expanding e‑commerce infrastructure, smartphone adoption, and shifting consumer shopping habits. India’s top omni-channel retailer FirstCry reported an 18% growth in online gross merchandise value in the 2024‑25 fiscal year, surpassing offline growth. This underscores the rising importance of digital channels in reaching consumers across both urban and emerging markets for toys and children’s products.

E-commerce growth is especially strong in tier-two and tier-three cities, where limited physical retail is offset by improving internet connectivity and digital payment adoption. Major platforms are investing in logistics networks, same-day delivery, and seasonal promotions, boosting toy category growth and attracting customers across diverse demographics. This expansion is enabling broader access to a variety of products while strengthening consumer engagement in emerging markets.

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 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

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

S. No.	HS-Code	Commodity	YR (2015-16)
1	9503	OTHR TOYS;RDCD-SIZE(“SCALE”)MODLS AND SMLR RECRETNL MODLS,WRKNG/NT;PUZLS OF ALL K	198,453.32 Lakhs
2	9504	VIDEO GAME CONSOLESAND MACHI, ARTLS FR FUNFAIR,TABLE/PARLOUR GAMES, NCLPINTABLS,BILLIARDS,SPCL TABLES FOR CASINO	25,270.18 Lakhs
3	9505	FESTIVE, CARNIVAL OR OTHER ENTERTAINMENT ARTICLES, INCLUDING CONJURING TRICKS AND NOVELTY JOKES	13,536.14 Lakhs

S. No.	HS-Code	Commodity	YR(2015-16)
1	9503	OTHR TOYS;RDCD-SIZE(“SCALE”)MODLS AND SMLR RECRETNL MODLS,WRKNG/NT;PUZLS OF ALL K	42,925.72 lakhs
2	9504	VIDEO GAME CONSOLESAND MACHI, ARTLS FR FUNFAIR,TABLE/PARLOUR GAMES, NCLPINTABLS,BILLIARDS,SPCL TABLES FOR CASINO	8,717.70 Lakhs
3	9505	FESTIVE, CARNIVAL OR OTHER ENTERTAINMENT ARTICLES, INCLUDING CONJURING TRICKS AND NOVELTY JOKES	30,777.00 Lakhs