Traditional toys and games is a strong industry, showing 4% growth in retail value sales in 2016. Despite national events like the US presidential elections, where consumers reduced their expenses until the outcome and thus delayed the boost of the holiday season, and international events like Brexit and international instability, the toys and games industry found a way to grow. However, contrary to a strong CAGR during the historical period and the current year growth, the CAGR for traditional toys and games at constant 2016 prices is expected to fall in the forecast period due in a large part to demographic changes.

Hasbro gains ground against Mattel

Hasbro significantly reduced the gap of market share between it and Mattel with the acquisition of Disney Princess production. Even with domestic manufacturers controlling the traditional toys and games industry, foreign companies like Spin Masters increased their share of the market through strategic acquisitions.

Online and digital sales to stay robust as virtual reality and mobile grow

Online sales and digital downloads will continue to play a major role when it comes to video games. Beyond that, there will be a rise in virtual reality headsets with compatible versions likely to gain the greatest shares. Nintendo released its newest handheld console in March 2017 with unprecedented sales, whilst PlayStation has discontinued production of its PlayStation 3 static console. Sales of mobile games will rise, but by way of micro transactions and in-game purchases as opposed to the pay-to-play model.

Licensing diversifies beyond Star Wars

Licensed products were a main driver for traditional toys and games growth, even when Star Wars demand cooled off. Encouraged by this fact, other franchises saw an opportunity to increase their participation in the industry by increasing their product lines. Licenses based on feature films gave toys and games the opportunity to release a wide variety of products across all categories.