Global Toys Market & Why India’s Toy Story Matters
The global toys market topped about $111.8 billion in 2024, growing roughly 3% year on year and around 4% CAGR since 2019 as per the Toy Association’s global sales data.
While 2024 was a mixed year, with flat to slightly down retail sales across major markets, the long-term fundamentals of toys as a resilient, innovation-driven category remain intact.
India’s pivot is striking: over the last decade the country has tightened safety standards, incentivized domestic manufacturing, built plug-and-play toy clusters, and used tariffs judiciously to encourage local value addition.
Result? Toy imports fell 52% between FY2014-15 and FY2022-23, and exports surged 239% in the same period, according to a DPIIT/IIM Lucknow case study highlighted by India’s Press Information Bureau (PIB).
This article maps the data, policies, clusters, and practical strategies that could help India meaningfully scale in the global toys market, and what industry leaders and policymakers must do next to convert momentum into market share.
The Global Toys Market: Demand Pockets and Structural Shifts
Size, growth, and the “kidult” effect
The global toys market has been supported by post-pandemic demand normalization, innovation waves (STEM toys, collectibles, licensed IP), and the “kidult” phenomenon - adults buying toys for themselves. Toy Association figures show $111.8B in global retail sales in 2024 (+3% YoY), and a 4% five-year CAGR since 2019.
What global buyers want
-
Safety and compliance first (chemical, mechanical, and electrical standards).
-
Speed to shelf: nimble supply chains and shorter development cycles.
-
Sustainability: recyclable materials, reduced packaging, and traceability.
-
Value + innovation: compelling play patterns at accessible price points.
Opportunities for India
As brands diversify supply chains beyond single-country dependence, India’s proposition - large workforce, improving infrastructure, and policy support - fits the “China+1” calculus. The global toys market is not just about low cost; reliable compliance, design capability, and cluster efficiencies are now decisive.
India’s Policy Flywheel: From Compliance to Competitiveness
BIS-led quality regime (the pivotal shift)
The Toys (Quality Control) Order, 2020 made BIS certification mandatory for toys sold in India, domestic or imported, enforcing ISI marking and conformance to Indian safety standards.
Subsequent updates and enforcement actions strengthened compliance at ports and in the market. Enforcement remains active; recent seizures of uncertified consignments underscore a zero-tolerance approach to substandard imports.
What it changed:
-
Raised the floor on quality, protecting consumers.
-
Leveled the field for compliant local makers versus low-quality imports.
-
Pushed manufacturers - foreign and Indian - to invest in labs, testing, and traceability.
Tariffs and scripting a local value chain
India increased the basic customs duty on toys (e.g., from 20% to 60% over time), a move that, alongside QCO/BIS measures, reduced toy imports by over 70% and bolstered local sourcing through FY2018-19 to FY2023-24, per industry reportage.
Imports from China reportedly fell from $235M in FY20 to $41M in FY24 as standards and domestic capacity ramped up.
National Action Plan for Toys and ecosystem development
The government’s National Action Plan for Toys dovetails with Make in India to expand design, testing infrastructure, and skilling. Several states have supported toy parks and industrial clusters; of these, Koppal Toy Cluster (Karnataka) is the flagship
Manufacturing at Scale: The Rise of Toy Clusters
Koppal Toy Cluster (Karnataka): India’s lighthouse project
India’s first large-scale toy manufacturing ecosystem at Koppal offers plug-and-play infrastructure across ~400 acres, integrating SEZ/DTA/FTWZ zones, and supporting 100+ units with common services.
Investments, incentives, and job creation potential (often cited at ~25,000 direct jobs) position Koppal as a ready base for global OEM/ODM plays.
Why clusters matter in toys:
-
Shared testing, tool rooms, mold-making, packaging, and logistics.
-
Lower per-unit costs and faster ramp-ups for seasonal orders.
-
Co-location of suppliers for plastics, electronics, plush, and packaging.
-
Easier BIS compliance via on-site or proximate labs and quality partners.
Beyond Koppal: Spokes and satellites
While Koppal leads, the template is replicable: state industrial policies can seed satellite clusters around NCR, Western India, and the East for plush, wooden, educational/STEM, and electronic toys, all plugged into national logistics grids and export gateways.
India’s Export Trajectory: Gains, Pauses, and the Path Forward
The step-change since 2015
Between FY2014-15 and FY2022-23, toy exports rose 239% and imports fell 52%, a vivid marker of policy traction.
A reality check (2023–24)
Exports eased to ~$152M in 2023-24 from $177M in 2021-22, reflecting muted demand in the West, especially the US, UK, and Germany. India’s commerce ministry attributes this to softer global orders, not structural backsliding at home.
Winning the Buyer: Compliance, Cost, Creativity
Compliance is non-negotiable
-
BIS/ISI compliance domestically; alignment with EN-71, ASTM F963, and other importing-country norms for exports.
-
Invest in in-house QA and third-party labs for mechanical/chemical/electrical tests.
-
Build digital traceability (materials provenance, batch-wise test reports).
Cost: The new competitiveness
Tariffs curtailed low-quality imports, but sustained competitiveness hinges on:
-
Yield and scrap reduction via better tooling and process engineering.
-
Automation for repetitive sub-assemblies in plastics and plush cutting.
-
Vendor-managed inventory with key resins, fabrics, and electronics.
-
Cluster-level shared services: mold libraries, dye houses, shared labs.
Creativity: India’s edge runs deeper than labor cost
Three vectors can differentiate Indian toys globally:
-
Cultural IP - design lines inspired by Indian stories, festivals, wildlife, and sciences (with universal play value).
-
STEM/STEAM - affordable, curriculum-aligned educational kits that travel well.
-
Eco-friendly materials - wooden toys (e.g., Channapatna), recycled plastics, and low-impact packaging.
Case Study: Koppal’s “Plug-and-Play” Promise
Policy + cluster + compliance together make Koppal a template. As more suppliers co-locate, lead times shrink, MOQ flexibility rises, and costs compress—all critical in the global toys market where retailers balance variety, price points, and shelf turns.
Where India Stands in the Global Toys Market - A Balanced View
Strengths:
-
Rising domestic capacity; tighter safety standards.
-
Strategic clusters and incentives.
-
Favorable geopolitics for supply-chain diversification.
Gaps to close:
-
Design/IP intensity: Many firms still operate build-to-print.
-
Component ecosystems: Sensors, motors, microcontrollers for electronic toys.
-
Testing throughput: More accredited labs to shorten certification cycles.
-
Scale financing: Working-capital bridges for seasonal spikes.
Outlook:
India’s toy industry is no longer a footnote. It is exporting to 150+ countries, according to recent remarks by the Commerce & Industry Minister, and building a reputation for quality compliance. The next leg of growth will come from value-added categories and design-led exports—areas where brand partnerships and OEM-to-ODM transitions will be decisive.
What Policymakers Can Do Next
-
Speed up lab capacity: More BIS-recognized labs in clusters to de-bottleneck testing.
-
Tooling mission: Grants or low-cost finance for high-precision molds; shared toolrooms.
-
Component localization: Incentivize small electronic components to reduce import dependence in electronic toys.
-
Design acceleration: National Toy Design Challenge 2.0 with export-buyer showcases.
-
Trade diplomacy: Mutual recognition of test reports with key markets to lower compliance friction.
-
Logistics: Time-definite export corridors for seasonal collections.
Channels & Formats: Matching India’s Strengths to Global Demand
-
STEM & educational kits: Leverage India’s education exports; align to US NGSS or UK EYFS where relevant.
-
Eco-friendly wooden toys: Build on crafts clusters; marry tradition with modern safety and packaging.
-
Collectibles & blind-box: Fast-cycle plastics with trend licensing in small runs.
-
Plush: Fabric supply chains + embroidery/printing clusters can scale quickly with QA discipline.
-
Board/card games: Printing, die-cutting, and packaging hubs integrate well with toy parks.
Risk Radar (and Mitigations)
-
Demand cycles in the West (inventory tightening): Hedge by diversifying destinations (MENA, ASEAN, LatAm).
-
Compliance drift: Continuous training; periodic pre-shipment audits.
Input volatility: Cluster-level procurement pools; long-term resin/fabric contracts.
-
FX risk: Natural hedges via import components; forward covers.
-
IP leakage: NDA discipline; segregated project cells; watermark tooling.
What Buyers Should Expect from “Made in India” Toys
-
Transparent compliance packs: Batch-wise test reports, CoCs, and full material declarations (FMDs).
-
Shorter development cycles: 30–45 days sample lead times, 60–90 days production for evergreen SKUs.
-
Sustainability options: Recycled content, FSC-certified wood, minimal plastics in packaging.
-
Responsive MOQs: Cluster-enabled shared capacities for smaller, seasonal buys.
-
Stable landed cost: Fewer surprise non-compliance costs at customs.
The Next Five Years: Scenarios for India in the Global Toys Market
Over the next five years, India’s position in the global toys market will likely be shaped by a mix of manufacturing growth, export expansion, and domestic market evolution.
With government initiatives like the “Make in India” campaign and Production Linked Incentive (PLI) schemes, toy manufacturing hubs are expected to modernize, leading to higher-quality products at globally competitive prices.
If India continues to reduce dependence on imports, particularly from China, it could emerge as a preferred sourcing destination for markets in Europe, the Middle East, and North America.
However, this growth will depend on addressing key challenges, such as improving supply chain efficiency, adopting sustainable manufacturing practices, and meeting stringent international safety standards.
On the consumer side, the rising Indian middle class and increasing awareness of educational and STEM-based toys will boost domestic demand, complementing export potential.
If all these trends align, India could double or even triple its global market share by 2030, firmly establishing itself as both a manufacturing powerhouse and a trendsetter in the toy industry.
Conclusion: From Policy Wins to Play Wins
India has moved from import dependence to credible manufacturing by doing the hard things, tightening quality, investing in clusters, and signaling long-term intent.
The numbers tell the story, imports down ~52% since FY2015, exports up ~239% through FY2023, and even the recent export softness looks cyclical rather than structural.
The opportunity now is to graduate from OEM to ODM - own more of the idea, the design, and the experience, not just the assembly.
If manufacturers double down on compliance by design, tooling excellence, and original IP, and if policymakers keep expanding labs, logistics, and component ecosystems, India can claim a durable, differentiated place in the global toys market—not just as a fast follower, but as a creator of play.
