United States Toys Market Size and Forecast 2025–2033

According to Renub Research Latest Report United States toys market is expected to grow from US$ 29.23 billion in 2024 to US$ 42.93 billion by 2033, reflecting a CAGR of 4.40% during 2025–2033. Growth in the market is driven by factors such as increasing consumer preference for interactive and educational toys, rising spending on children's development, and the popularity of franchise-based collectibles.

The market is segmented by toy type (action figures & accessories, arts & crafts, building sets, dolls, explorative & other toys, games/puzzles, infant/toddler/preschool toys, outdoor & sports toys, plush, vehicles, youth electronics) and sales channels (e-commerce, specialty stores, discounters, department stores, and others). Key players operating in the U.S. market include Mattel Inc., Hasbro Inc., LEGO, Spin Master Corp., VTech, Nintendo, Funko Inc., and JAKKS Pacific.

Market Overview

Toys are primarily designed for entertainment, play, and education. While traditionally targeted at children, people of all ages enjoy collecting and interacting with toys, particularly franchise-based and digital toys. The U.S. toy market is among the largest globally, driven by cultural traditions, holiday seasons, and gifting occasions such as Christmas, birthdays, and family events.

Toys not only provide amusement but also play a significant role in child development, including creativity, critical thinking, problem-solving, and social skills. The U.S. population, particularly the number of children, drives sustained demand for toys. By 2024, approximately 74.6 million children reside in the U.S., a figure expected to grow alongside the total U.S. population, projected to rise from 342 million in 2024 to 383 million by 2054 (Congressional Budget Office).

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Growth Drivers

1. Increasing Focus on STEM Education

Educational toys, particularly STEM-based toys, are gaining popularity among parents who seek products that combine play with learning. STEM toys promote critical thinking, creativity, and problem-solving skills, equipping children with foundational skills for future careers in technology and science.

For example, Toycra's OpenEnded product line (October 2023) focuses on educational toys designed to stimulate skill development and creativity. Products such as science kits, building blocks, and coding toys have seen heightened adoption in schools and homes, promoting both fun and learning. The growing emphasis on STEM in curricula and extracurricular activities is expected to continue driving demand for educational toys over the next decade.

2. Expansion of Digital-Interactive Toys

The integration of technology into toys has become a major trend in the U.S. market. Digital-interactive toys, including smart toys, robotic kits, and augmented reality (AR) playsets, have gained significant traction among children and parents alike.

Technologies such as AI and AR enable toys to provide interactive experiences that combine education and entertainment. For instance, Ms. Rachel's educational toy line (October 2024) included sensory toys, puzzles, and tummy time mats designed to enhance cognitive and motor skill development while maintaining entertainment value.

As children become increasingly tech-savvy, demand for smart toys that are both educational and entertaining is expected to boost market growth.

3. Collectible and Franchise-Based Toys

Toys linked to popular franchises such as Disney, Marvel, Star Wars, Transformers, and Pokémon continue to dominate the U.S. market. Action figures, dolls, and accessories based on licensed IPs remain highly sought after by both children and adult collectors.

Franchise-based toys encourage repeat purchases, as consumers aim to complete collections or obtain new character releases. For example, in March 2023, Hasbro expanded its Playskool line in collaboration with PlayMonster, strengthening its portfolio of educational and franchise-based toys.

Collectors’ enthusiasm and brand loyalty associated with such products ensure that franchise-driven toy sales remain resilient even during economic fluctuations.

Key Market Challenges

1. Supply Chain and Production Disruptions

The U.S. toy market relies heavily on overseas manufacturing, primarily in Asia. Supply chain challenges, including raw material shortages, shipping delays, and labor shortages, create stockouts and increased prices during peak seasons like Christmas.

Manufacturers are increasingly exploring localized production and diversified supply chains, but these measures are still in the developmental stage and may not fully resolve seasonal shortages.

2. Regulatory Oversight and Safety Issues

Toy safety is a major concern in the U.S. market. The Consumer Product Safety Commission (CPSC) enforces strict regulations regarding choking hazards, toxic materials, and age-appropriate designs.

Compliance with these regulations can be challenging, particularly for small or emerging toy companies, as changes in standards or recalls can damage brand reputation and impact sales. Despite these challenges, compliance is essential to maintain consumer trust and safety standards.

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Market Segmentation

By Toy Type

Action Figures & Accessories: High demand from franchise-based collections (Marvel, Star Wars, Transformers).

Arts & Crafts: Encourage creativity, particularly in educational and STEM-focused contexts.

Building Sets: Popular for developing spatial awareness, problem-solving, and STEM learning.

Dolls: Inclusive dolls representing diverse ethnicities, body types, and abilities are gaining market share.

Explorative & Other Toys: Include science kits, discovery kits, and role-play products.

Games/Puzzles: Board games and card games remain popular for family interaction and cognitive development.

Infant/Toddler/Preschool Toys: Safety, sensory stimulation, and learning are primary drivers.

Outdoor & Sports Toys: Reflect growing interest in physical activity and outdoor engagement.

Plush: Popular for younger children and gift items.

Vehicles: Toy cars, trains, and remote-controlled vehicles drive collector and play interest.

Youth Electronics: Tech-driven toys such as tablets, coding kits, and interactive consoles cater to digital learning.

By Sales Channel

E-commerce: Dominates due to convenience, wide product range, price comparisons, and online promotions.

Example: Amazon and Walmart provide access to thousands of products, and online holiday campaigns like Macy’s “Geoffrey’s Hot Toy List (Sept 2024)” highlight top toys for gifting.

Specialty Stores: Focus on high-quality, educational, or eco-friendly toys. Example: Melissa & Doug’s first U.S. store (Sept 2023) showcases STEM and creativity toys.

Discounters: Offer cost-effective options for mass-market toys.

Department Stores: Provide seasonal and popular products for general consumers.

Others: Include boutique stores, subscription boxes, and direct-to-consumer brands.

Key Market Insights

Action Figures & Accessories Market

This segment benefits from the growing popularity of franchise toys, targeting children and adult collectors alike. Action figures often come with playsets, vehicles, or accessories to enhance imaginative play.

Dolls Market

The U.S. dolls market has seen a shift toward inclusivity, with diverse skin tones, body types, and abilities. This reflects societal values, promotes social learning, and resonates with conscious parents.

Games/Puzzles Market

Board games, card games, and jigsaw puzzles remain popular among families seeking interactive, screen-free entertainment. The rise of online marketplaces has expanded availability, making niche games more accessible nationwide.

E-commerce Growth

Online shopping has become a primary sales channel, offering convenience, product variety, and the ability to read reviews before purchase. Holiday promotions and limited-edition toys released online further boost digital sales.

Specialty Stores

Specialty toy stores cater to high-quality, educational, or eco-friendly products, providing parents with alternatives to mass-market toys. Products often emphasize STEM, creativity, or craftsmanship.

Key Companies and Strategies

Mattel Inc.: Focused on innovation and licensing deals for Barbie, Hot Wheels, and Fisher-Price products.

Hasbro Inc.: Franchise-based toys, including Marvel, Transformers, and Playskool.

LEGO: Building sets with educational and creative value.

Spin Master Corp.: Robotics, interactive toys, and entertainment-based playsets.

VTech: Educational electronics and learning toys.

Nintendo: Youth electronics and gaming consoles.

Funko Inc.: Collectibles and licensed pop culture products.

JAKKS Pacific: Action figures, dolls, and outdoor toys.

Strategic Trends:

Product Innovation: Development of STEM, digital, and interactive toys.

Licensing Agreements: Partnering with popular franchises to attract children and collectors.

E-commerce Expansion: Leveraging digital channels for marketing, promotions, and online-exclusive products.

Sustainability: Eco-friendly toys and packaging gaining traction among environmentally conscious parents.

Market Outlook

The U.S. toys market is expected to maintain steady growth from 2025 to 2033, driven by:

Increasing interest in STEM and educational toys

Rising adoption of interactive, tech-based toys

Popularity of franchise-based collectibles

Expansion of e-commerce and specialty retail channels

By 2033, the market is projected to reach US$ 42.93 billion, with opportunities for innovation in STEM, robotics, AR/AI toys, and inclusive dolls continuing to fuel long-term expansion.

Conclusion

The United States toys market is evolving from traditional dolls, puzzles, and building sets toward tech-savvy, educational, and franchise-based toys. Growth is fueled by parental focus on learning, technological advancements, and digital play trends, as well as by licensing and collectible culture.

Challenges, such as supply chain issues, strict safety regulations, and rising production costs, persist, but the market continues to offer strong opportunities for innovation, differentiation, and niche targeting. By embracing STEM, interactive digital play, and inclusivity, toy companies in the U.S. are well-positioned for sustainable growth over the next decade.

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