Digitalisation and social commerce are transforming how consumers purchase toys and games. Video games are predominantly purchased online, while traditional toys and games remain largely tied to offline retail, reflecting consumers’ continued preference for in-person shopping experiences.
Delivery
This report comes in PPT.
Key Findings
Online for video games, offline for traditional toys
E-commerce is expected to account for a growing share of video game sales, while physical retail remains the primary channel for traditional toys. This shift is driven by ongoing digitalisation, the expansion of social commerce and changing consumer preferences.
Hypermarkets and specialist retailers are core to offline channels sales
Hypermarkets and leisure/personal goods specialists are the backbone of offline retail for toys and games, especially in developed markets. These channels attract families and kidults with broad assortments, competitive pricing and immersive shopping experiences.
Video games propel e-commerce growth with APAC leading
E-commerce performance is strongest in video games, particularly software, where digital downloads and subscriptions are now the norm. Asia Pacific, led by China, dominates e-commerce sales due to advanced digital infrastructure and intense competition among online retailers.
S-commerce reshaping consumer engagement
TikTok (ByteDance), Alibaba and PDD are reshaping how consumers discover and purchase toys and games in Asia Pacific, leveraging mobile-first strategies and in-app shopping to drive impulse purchases and broaden market reach.
Channel shifts will accelerate, driven by digitalisation and experience
Over the forecast period, e-commerce will capture a larger share of video game sales, while physical retail remains important for traditional toys. The most important drivers of these changes include ongoing digitalisation, the rise of social commerce and evolving consumer preference.
Key findings
Toy buyers still want to see the toys before buying
Traditional toys bucking the e-commerce trend as purchases are mostly offline
Escapism and nostalgia to fuel toys and games growth
Video games surged globally except Turkey, where government measures cut growth
Asia embraces mobile games, while traditional toy companies seek refuge in the West
Digital distribution of video games propelled e-commerce sales
Hypermarkets are critical to toys and games sales in selected regions
Discounters and appliances and electronics specialists beating the odds
Connection, discovery and nostalgia keep traditional toy stores relevant
Hypermarkets offer the ultimate convenience for time-pressed consumers
Different product type shapes retail channel success
PopMart’s success formula is its aggressive retail expansion
Cyberpunk 2077’s success reinforced the value of physical distribution
Video games lead e-commerce growth whereas traditional toys sales rely on stores
China drives Asia Pacific’s e-commerce dominance in toys and games
The ascension of TikTok (ByteDance) as a retail platform
Explosive growth of e-commerce driven by video games software
Consoles ignite online sales, but physical retail holds strong for kidults and families
Digitalisation and e-commerce drive Sony’s Game & Network Services’ success
Monopoly Go! revitalises Hasbro’s revenues as consumers shift to digital downloads
E-commerce continues to erode into offline sales
Recommendations/how to win
Toys and Games
This is the aggregation of traditional toys and games and video games.
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