By Virang Shah
The Indian toy industry has undergone a dynamic transformation, influenced by shifting market trends, evolving consumer expectations, and the promise of a brighter future via the Make In India mandate. Within the global toy industry, which boasts a vast market size exceeding 10 lakh crore, India’s current contribution stands at just 1 percent, indicating substantial untapped potential.
The industry currently commands an estimated worth of $1.5 billion in India, representing 0.5 percent of the global market share. Forecasts project remarkable growth, envisioning a value of $2.73 billion by 2027, promising exciting opportunities within the Indian toy market. The manufacturing landscape is chiefly concentrated in regions such as the NCR, Maharashtra, Karnataka, Tamil Nadu, and central states. Notably, nearly 4,000 toy industry units, classified under the MSME (Micro, Small, and Medium Enterprises) category, are propelling the sector’s evolution.
Brands are adjusting to the shifting landscape
Brands have recognised the pivotal role this industry plays in the global market and the substantial impact it can have on international positioning. They are now strategically aligning their vision, emphasising the creation of toys that seamlessly blend education with play. This transformative approach, often encapsulated as ‘Play to Grow’, has become the industry’s guiding ethos.
Under this innovative narrative, the toy industry is undergoing a significant transformation, where educational enrichment and playful engagement coalesce seamlessly. This shift not only augments the developmental experiences of children but also underscores the industry’s commitment to shaping a brighter, more intellectually stimulating future for the younger generation.
Conversely, the export of Indian toys has seen a significant surge, reaching $326.63 million in FY22, signalling the positive trajectory of the Indian toy industry in the domestic market. Toy demand is expected to rise at an impressive rate of 10-15 percent, surpassing the global average of 5 percent.
Acknowledging the demand for Indian-made toys, the government is poised to introduce an INR 3,500-crore production-linked incentive (PLI) scheme, specifically targeting Indian toy manufacturers specialising in finished toys.
Demand for educational toys is rising
To commence the exploration, one must delve into the current dynamics of the Indian toy industry. The substantial market size underscores the industry’s significant scope. With consumers becoming increasingly discerning and well-informed, there is a notable surge in the demand for diverse, educational, and high-quality toys.
The industry holds great promise for the future, with emerging trends poised to shape its landscape. Looking ahead, there is an anticipation of a greater infusion of STEM (Science, Technology, Engineering, and Mathematics) concepts into educational toys. These innovative toys will equip children with essential skills for the digital age, such as coding and robotics knowledge.
Amid the ever-evolving landscape of child development, educational toys remain a steadfast source of inspiration and empowerment. The commitment within the industry is unwavering, with a strong belief in the narrative of ‘Make in India, Make for the World’.
Selecting the right toys for a child transcends mere trends; it entails thoughtful consideration of the child’s age, safety, and developmental needs. Toys are more than mere playthings; they are tools that shape a child’s future. With a rich tapestry of market data, industry insights, and an unwavering dedication to nurturing young minds, the Indian toy industry is poised to continue its captivating journey, fulfilling the needs of current and future generations.
The writer Virang Shah is the co-founder of Toycra