The Toys and Games landscape is being reshaped by the rise of kidults, digital play and the rising power of IP-driven ecosystems. While companies such as Tencent, LEGO and Mattel continue to dominate their respective categories, new entrants such as Pop Mart are entering the market with its own unique proposition.
Delivery
This report comes in PPT.
Key Findings
The strength of IPs becoming a competitive moat
LEGO’s dominance in the Construction segment highlights how its system play and IP licensing creates pricing power and deeper engagement. Mattel’s broad popularity of evergreen franchises such as Barbie and Hot Wheels gives the company a loyal fan base.
Differing strategies for video games companies
Chinese gaming companies such as Tencent and NetEase are mostly strong in their domestic market in mobile games. Static console manufacturers such as Microsoft have pivoted to digital play as demand for static consoles weakens.
Digital play is the next source of revenue growth
Microsoft’s pivot from hardware to content drives high engagement and generates recurring revenues. Even traditional toy manufacturers such as Mattel are expanding into digital gaming to complement physical toys.
Kidults are shaping play and companies’ strategies
Growth in kidult spending is reshaping product pipelines, collaborations and premium positioning across the industry. LEGO’s cultural tie‑ins and Pop Mart’s lifestyle‑driven collectibles show how adult engagement now plays a central role in driving value across multiple categories.
Key strategies adopted by leading companies
Key findings
Companies at a glance
The importance of IPs highlighted by Mattel’s growth and Hasbro’s demise
Global companies take fundamentally different routes to growth to China companies
LEGO dominates construction whereas others grow their diversification
Mattel and Hasbro’s strength comes from wide, multi-brand portfolios
Long-term outlook shows limited ranking shifts across leading players
Global push gains traction but Tencent is still highly dependent on domestic market
Xbox demand softens as Microsoft shifts to higher-margin digital play
LEGO enjoys a near monopoly in construction toys
Hot Wheels drives growth as Barbie momentum eases
Hasbro streamlines portfolio but faces weak demand across key categories
Pop Mart’s stellar success in Southeast Asia
Projected company sales: FAQs
Toys and Games
This is the aggregation of traditional toys and games and video games.
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