Animation Toy Market to Reach USD 70.7 Billion by 2033

Introduction

The Global Animation Toy Market is projected to grow significantly, reaching an estimated value of USD 70.7 billion by 2033, up from USD 37.3 billion in 2023. This growth reflects a robust compound annual growth rate (CAGR) of 6.6% over the forecast period, spanning 2024 to 2033.

Animation toys are products that are either inspired by or based on characters and themes from animated movies, television shows, or digital media. These toys often feature characters from popular animated franchises, such as superheroes, animated animals, or iconic figures from children’s cartoons. They can be physical action figures, plush toys, interactive dolls, or even electronic gadgets, often designed to replicate elements from their animated counterparts, such as movement, speech, or sound effects. Animation toys aim to bring animated stories and characters to life in a tangible form for children and collectors alike.

The animation toys market encompasses a wide range of toys derived from animated content, targeting children and sometimes adult collectors. This market is driven by the popularity of animated series and films, with toy manufacturers capitalizing on the massive global appeal of these entertainment properties. The market includes toys from traditional 2D animation, 3D animated films, and even video game-inspired content. Key segments include action figures, playsets, plush toys, and electronic interactive toys, all designed to enhance the consumer experience by blending physical play with the imaginative world of animation.

Several key factors are fueling the growth of the animation toys market. First, the increasing consumption of animated content, driven by the global proliferation of streaming platforms like Netflix, Disney+, and YouTube, has amplified the demand for associated merchandise. Families today have easier access to a diverse range of animated content, which strengthens brand recognition and boosts toy sales.

Second, the constant evolution in animation techniques, including advancements in CGI and 3D animation, creates more visually appealing and immersive characters, further increasing their marketability. Third, the growing trend of licensed toys tied to blockbuster franchises from superhero films to popular animated series—ensures a steady stream of new product lines, keeping consumer interest high.

The demand for animation toys remains robust, with children consistently gravitating toward characters they know and love from animated shows and movies. For instance, the release of new animated films or television series often leads to a surge in toy sales, as parents seek to buy products that reflect the latest entertainment phenomena.

The demand is also fueled by the increasing popularity of interactive toys, where children can engage in imaginative play with figures that mimic the actions of their animated counterparts. Moreover, the appeal of nostalgia-driven toys among adult collectors is contributing to sustained demand in certain segments, such as action figures from 80s or 90s animated series.

The animation toys market presents significant opportunities for growth, particularly in emerging markets where the middle class is expanding, and the appetite for global entertainment content is rising. With increasing urbanization and disposable income, countries in Asia-Pacific, Latin America, and Africa are seeing rising demand for branded merchandise linked to popular animated characters.

Additionally, as digital platforms and streaming services continue to dominate, toy manufacturers have an opportunity to align product development with evolving trends in animation content, creating interactive, digital-connected toys that bridge the gap between the physical and digital worlds. The opportunity also extends to the growing niche of sustainable and eco-friendly toys, where companies can capitalize on consumer demand for environmentally responsible products by creating animation-based toys using recycled materials or sustainable manufacturing processes

Key Takeaways

• The global animation toy market is expected to reach USD 70.7 billion by 2033, up from USD 37.3 billion in 2023, growing at a 6.6% CAGR from 2024 to 2033.
• In 2023, Anime Figures held the largest share in the Based on Type segment, with 33.5%.
• Low-priced toys led the Based on Product Price segment in 2023, capturing 46.3% of the market.
• Gundam was the dominant animation title in the Based on Animation Titles segment in 2023.
• Learning Toys held the highest market share in the Based on Category segment, with 65.2% in 2023.
• The 8-14 years age group was the largest segment in 2023.
• Toys with Cute character traits were the most popular in 2023.
• Online sales dominated the Based on Sales Channel segment in 2023.
• Asia Pacific held a 31.3% market share in 2023, generating USD 11.6 billion in revenue.

Animation Toys Statistics

• Smart animation toys with machine learning capabilities have seen a 28% rise in popularity among children aged 6-12.
• 70% of new animation toys now feature smartphone or tablet connectivity.
• Despite 90% of children’s toys being made of plastic, the industry is taking steps toward sustainability.
• British children typically engage with only 5% of their toys.
• An American toy manufacturer is on track to achieve 100% recycled, recyclable, or bio-based materials in its products and packaging by 2025.
• A 50-year-old German toymaker now uses 90% plant-based material in its toddler range.
• Playmobil’s Wiltopia range is 80% made from recycled and bio-based materials.
• The U.S. employs over 4,900 animators.
• 92% of global internet users watch online videos, making animation an essential part of digital content.
• Animated videos are 50 times more likely to rank on Google’s first page than text content.
• On average, people watch 1.5 hours of video content daily, emphasizing the importance of animation.
• Spin-off merchandise from movie blockbusters accounts for 10% of UK toy sales.
• 85% of businesses leverage video for marketing, with animation being a key strategy.
• 75% of major toy companies are based in the United States.
• Animated videos can boost conversion rates by 20%, driving higher sales.
• Animation videos retain 95% of viewers, compared to just 10% for text content.
• The average animated video lasts 4.5 minutes, with shorter videos performing better on social media.
• 80% of marketers report that video increases dwell time on their websites.
• Japan’s animation industry supports over 50,000 jobs.
• 3 out of 4 families with children own at least one animated movie.
• The share of digital and tech-integrated toys in the animation market has grown to 35%, reflecting rising demand for STEM-focused toys.
• 80% of animation toys are marketed to children aged 3-10 years.

Emerging Trends

• Integration of Augmented Reality (AR) and Virtual Reality (VR): The animation toys market is increasingly integrating augmented reality (AR) and virtual reality (VR) to enhance play experiences. These technologies allow children to interact with their favorite animated characters in real-world environments through smart devices. This trend is creating immersive experiences that blend physical play with digital worlds, offering a more engaging and educational playtime.
• Rise of Collectible Animation Toys: There has been a notable shift towards collectible animation toys, driven by consumer interest in characters from popular franchises, including animated series and films. Limited-edition releases and series-based collections are becoming highly sought after, fueling a culture of collecting. This trend is not only boosting sales but also encouraging repeat purchases as collectors seek to complete sets.
• Sustainability in Toy Manufacturing: As sustainability concerns grow globally, animation toy manufacturers are increasingly focusing on eco-friendly materials and production methods. Companies are adopting recycled plastics, biodegradable packaging, and other sustainable practices. This aligns with growing consumer demand for environmentally responsible products, particularly in markets like Europe and North America, where eco-consciousness is high.
• Personalized Animation Toys: Personalization in animation toys is becoming a key selling point, with companies offering customization options. Consumers can now create toys that reflect their children’s preferences, from name engraving to selecting specific character attributes or outfits. This growing trend taps into the desire for unique, personalized gifts and fosters deeper emotional connections with the product.
• Smart Animation Toys with AI Integration: The incorporation of artificial intelligence (AI) into animation toys is transforming how children interact with toys. AI-powered toys can learn from user interactions, respond to voice commands, and offer personalized play experiences. These toys adapt to the child’s development stage, enhancing both educational value and engagement.

Top Use Cases

• Educational Tools for Cognitive Development: Animation toys are increasingly used to support cognitive development in children. Interactive toys that feature characters from animated shows are designed to teach children basic skills, including numbers, letters, colors, and problem-solving. For example, toys that respond to voice commands or encourage children to solve puzzles enhance learning while keeping them entertained.
• Physical Play and Motor Skills Improvement: Many animation toys are designed to encourage physical activity. Toys that incorporate movement, such as robots or action figures with motorized parts, help children develop fine motor skills and coordination. This is especially true in toys that require children to manipulate parts or use motion-based controls, such as robots that can be guided through obstacle courses.
• Social Interaction and Communication: Animation toys that encourage social play are gaining traction, helping children develop communication skills. Toys like animated dolls or action figures that interact with each other foster imaginative play and collaboration. As children role-play, they practice language skills, empathy, and conflict resolution, all while engaging with their favorite animated characters.
• Therapeutic Use for Special Needs Children: Some animation toys are specifically designed to assist children with special needs. These toys offer tailored features that help with emotional regulation, sensory stimulation, and social skills. For instance, animation-based toys that incorporate soothing music or lights can help calm children with autism, offering both entertainment and therapeutic benefits.
• Enhanced Entertainment Experiences for Kids and Families: Animation toys are also used in enhancing family entertainment experiences. Toys that tie into popular animated movies or shows enable children to recreate scenes or create their own stories, thus extending the entertainment beyond the screen. This can include toys with sound effects, lights, or movement features that replicate the on-screen animation.

Major Challenges

• Intellectual Property (IP) Rights Issues: A significant challenge in the animation toy industry lies in navigating intellectual property (IP) rights. Licensing animated characters and securing the necessary rights to use popular brands or franchises can be complex and costly. Furthermore, infringements and counterfeits in the market undermine both sales and brand trust, adding another layer of complexity for toy manufacturers.
• High Production Costs for Tech-Enabled Toys: As animation toys incorporate more advanced technologies, such as AI, AR, and VR, production costs have risen. The integration of sensors, chips, and smart features demands sophisticated manufacturing processes, which increases overall costs. This can make tech-enabled toys less affordable for a significant portion of consumers, particularly in price-sensitive markets.
• Safety Concerns and Regulations: The increasing complexity of animation toys, especially those incorporating electronic components, raises concerns about safety. Regulatory standards for toys vary by region, with strict regulations in place to ensure child safety. Manufacturers must invest in meeting these standards, conducting thorough testing, and ensuring that toys do not pose any risk to young children, especially in relation to small parts, toxic materials, or electrical hazards.
• Consumer Preference Shifts Toward Digital Entertainment: The growing trend of children spending more time on digital platforms (e.g., video games, apps, streaming services) has created a challenge for traditional physical toys, including animation-based ones. As digital entertainment options become more engaging and easily accessible, manufacturers face difficulty in capturing and retaining the attention of children who may prefer virtual experiences over physical play.
• Supply Chain Disruptions: Like many industries, the animation toy sector faces ongoing challenges with supply chain disruptions, particularly in sourcing raw materials, managing production timelines, and addressing shipping delays. The COVID-19 pandemic highlighted these vulnerabilities, leading to delayed product launches and inconsistent availability in stores. These disruptions continue to affect production costs and inventory management.

Top Opportunities

• Growing Popularity of Online and Direct-to-Consumer Sales Channels: The rise of e-commerce presents significant opportunities for animation toy manufacturers to reach broader audiences. Direct-to-consumer models, especially through online platforms, allow brands to bypass traditional retail and build stronger relationships with consumers. This trend is particularly relevant in markets like North America and Europe, where consumers increasingly prefer shopping online for toys.
• Expanding Market for Eco-Friendly Animation Toys: Sustainability is becoming a key decision-making factor for consumers. The growing demand for eco-friendly products presents an opportunity for animation toy manufacturers to innovate with sustainable materials and packaging. Products that use recycled plastics, organic materials, or biodegradable components are increasingly attractive to eco-conscious parents, especially in developed markets.
• Integration of Smart Technologies for Personalized Experiences: The integration of smart technologies, such as voice recognition and AI, provides a significant opportunity to create personalized play experiences. Toys that adapt to children’s preferences or offer dynamic interactions can differentiate themselves in the market. This is particularly appealing to parents seeking toys that foster learning and engagement in innovative ways.
• Expansion into Emerging Markets: Emerging markets, especially in Asia-Pacific and Latin America, represent untapped potential for animation toy manufacturers. Rising disposable incomes, urbanization, and a growing middle class are leading to increased demand for animated toys in these regions. As the market for animated content grows in these areas, the demand for animation-themed toys is also set to rise.
• Collaborations with Streaming Platforms and Animated Franchises: Strategic partnerships between toy manufacturers and streaming platforms or animated franchises offer new growth opportunities. By aligning with popular animated series or films, manufacturers can capitalize on the global success of these intellectual properties. These collaborations help drive toy sales through cross-promotion and synergies with existing media content.

Key Player Analysis

• AOSHIMA BUNKA KYOZAI Co. LTD.: AOSHIMA BUNKA KYOZAI is a prominent player in the animation toy market, known for producing highly detailed model kits and figures based on popular anime and animation series. The company specializes in plastic model kits and die-cast toys, offering a wide range of collectibles that appeal to both younger audiences and adult collectors. AOSHIMA’s market presence is driven by its collaboration with various popular media franchises, ensuring a consistent release of high-quality products. While exact revenue figures are not publicly disclosed, the company is recognized for its substantial presence in the collectible toy segment.
• Arteza: Arteza is a global leader in providing creative products, including animation-themed art supplies and toys. The company focuses on fostering creativity among children and adults alike with its art-based toys and activity kits. While primarily known for its art materials, Arteza’s expansion into the animation and DIY toy market has allowed it to capture a significant portion of the creative toy market, particularly through partnerships with popular animation franchises. Arteza’s annual revenue has been estimated to exceed $100 million, signaling its strong influence in the broader creative toys and animation products sector.
• Mattel Inc.: Mattel is one of the largest and most well-established players in the global toy industry, known for its wide range of animation and action figure toys. The company holds several major licensing deals with top animation studios, including the rights to popular franchises like Masters of the Universe, Barbie, and Hot Wheels. In 2023, Mattel reported a revenue of $5.48 billion, a significant portion of which is driven by its action figures and collectibles from animated properties. Mattel’s innovation in character-driven toys continues to position it as a leader in the animation toy market.
• BANDAI NAMCO Holdings Inc.: BANDAI NAMCO Holdings is a key player in the animation toy market, renowned for its role in both animation production and the creation of associated toys. The company has a massive global footprint, with its products spanning from video games to physical toys. BANDAI’s portfolio includes toys based on well-known anime series like Dragon Ball, One Piece, and Mobile Suit Gundam. In fiscal year 2023, BANDAI NAMCO reported consolidated revenues of ¥701.6 billion (approximately $4.9 billion), with a significant portion stemming from its toy segment. The company’s integration of multimedia franchises ensures a strong market presence.
• Dream International Limited: Dream International Limited is a significant player in the animation toy industry, specializing in high-quality plush toys and figurines, particularly those related to animation and video game franchises. The company’s portfolio includes products linked to popular animated properties such as Pokémon and Disney. Dream International is known for its innovative designs and manufacturing capabilities, which have enabled it to maintain a strong presence in global markets. Although specific revenue figures are not always publicly disclosed, the company’s strategic licensing agreements help it generate substantial sales across key regions.

Future Outlook of the Animation Toys Industry

The animation toys industry is poised for robust growth, driven by the increasing convergence of entertainment and play. With advancements in technology, including augmented reality (AR) and artificial intelligence (AI), toy companies are introducing more interactive, immersive, and personalized experiences for children. Notable investments have been observed in the sector, such as Hasbro’s $4 billion acquisition of Entertainment One, expanding its portfolio of animated characters.

Furthermore, in 2023, Mattel secured a strategic partnership with DreamWorks to produce toys based on popular animated franchises. In 2023, the global animation toy market was valued at approximately USD 37.3 billion, with significant contributions from regions such as North America and Asia Pacific. The rise of digital content platforms like YouTube, along with an expanding market for collectible figures and franchises such as Disney and LEGO, indicates a sustained demand. The industry’s future looks promising as it continues to leverage cross-platform media to drive innovation and engagement

Asia Pacific Animation Toys Market

Asia Pacific remains the dominant region in the global animation toys market, accounting for a substantial 31.3% of the market share in 2023. The market value in the region reached approximately USD 11.6 billion in 2023, driven by high demand from key countries such as Japan, China, and South Korea. The region’s prominence can be attributed to a deep-rooted culture of animation, with many popular animated franchises originating here, including iconic series like Naruto, Dragon Ball, and Pokemon. Furthermore, Asia Pacific is home to major toy manufacturers such as Bandai Namco, Aoshima, and Takara Tomy, which significantly influence the market landscape.

Rising disposable income, urbanization, and the increasing adoption of animation-related products among both children and adults in these regions contribute to the rapid growth in the market. The Asia Pacific region is expected to continue leading the animation toys market in the coming years due to its strong production base, expansive consumer demand, and the presence of major entertainment and media franchises.

Recent Developments

• In June 1, 2023 – Mattel, Inc. announced a new collection inspired by the upcoming Barbie™ movie, set to debut in theaters on July 21. This collaboration with Warner Bros. Pictures brings together a wide array of Mattel brands, including UNO®, Hot Wheels®, Fisher-Price®, MEGA™, and Barbie, offering fans the chance to bring home toys based on the highly anticipated film and expand their playtime experiences.
• In March 11, 2024 – The LEGO Group celebrated MAR10 Day by revealing three new LEGO® Super Mario™ sets: The Bowser Express Train, King Boo’s Haunted Mansion, and Battle with Roy at Peach’s Castle. Additionally, the company announced that Mario Kart™ will be coming to LEGO bricks in 2025, adding even more excitement to the LEGO Super Mario series.
• In August 1, 2023 – Spin Master Corp. unveiled its toy collection for the upcoming PAW Patrol: The Mighty Movie, which will be released later in the year. The collection is tied to the second feature film in the PAW Patrol franchise, produced in association with Nickelodeon Movies and Paramount Pictures, continuing to build on the global success of the PAW Patrol brand.
• In July 16, 2024 – MGA Entertainment completed its merger with Zapf Creation AG, a leader in nurturing dolls in Europe. This merger created MGA Zapf Creation GmbH, a wholly owned subsidiary, strengthening MGA’s position in the global toy market and expanding its portfolio in the nurturing doll category.
• In January 25, 2024 – Moose Toys announced an exclusive partnership with MrBeast (Jimmy Donaldson) to co-create a new toy line. This collaboration aims to disrupt the toy industry with a collectible action figure range featuring MrBeast’s signature panther character designs, set to launch in Fall 2024. The new line is aimed at both kids and “kidults,” appealing to a wide demographic of fans.

Conclusion

The animation toys market is experiencing dynamic growth, driven by the increasing popularity of animated content across various media platforms, advancements in toy technology, and evolving consumer preferences. The market’s expansion is supported by the rising demand for interactive and personalized toys, as well as a strong shift toward sustainability in production.

Additionally, the growing influence of digital platforms and the integration of cutting-edge technologies such as AI, AR, and VR are shaping the next generation of toys, creating new opportunities for innovation. As the market continues to evolve, manufacturers must adapt to shifting consumer demands, capitalize on emerging markets, and navigate challenges related to intellectual property and production costs. The future of the animation toys market holds significant potential, with opportunities in both traditional and digital play experiences, ensuring continued growth in the years to come.

Discuss Your Needs With Our Analyst

Please share your requirements with more details so our analyst can check if they can solve your problem(s)

Request a Sample Download PDF