Construction Toys Market Size, Share & Trends Analysis Report By Product (Bricks & Blocks, Tinker Toy), By Material (Wood, Polymer, Metal), By Region, And Segment Forecasts, 2022 - 2030

Report Overview

The global construction toys market size was valued at USD 12.03 billion in 2021 and is expected to expand at a compound annual growth rate (CAGR) of 6.5% from 2022 to 2030. The rising recognition of the benefits associated with construction toys in the cognitive development of kids is expected to accelerate the growth of the industry. These products help develop spatial reasoning in children, which is anticipated to drive the demand from education systems. For instance, bricks and blocks toys are included in the early grades of education. Holistic development to develop creativity and imagination among children is the objective of including these games for children in kindergarten.

The outbreak of coronavirus across the globe badly affected the global economy. To break the chain, and spread of coronavirus, lockdown orders were imposed by various countries around the world. This had a devastating impact on supply chains, distribution channels, and trade & development of the construction toys industry. Moreover, the increasing sale of toys through various e-commerce websites after the COVID-19 pandemic may fuel the demand for more construction toys over the forecast period.

Construction toy manufacturers advocate plastics to be completely safe for kids based on account of their low level of toxicity and their water resistance. Toys containing PVC, plasticizers, and Bisphenol A including adipates and phthalates as constituents are not suitable for kids and can have serious adverse effects on their health, which may hinder the growth. Regulatory authorities in many countries, including India, Germany, and Sweden, have imposed a ban on using these materials in toys. Growing awareness among parents and education authorities is forcing toy manufacturers to avoid the aforementioned plastic materials.

Over the last few years, research studies regarding child psychology and cognitive development have time and again emphasized the role of construction toys in improving children’s cognitive flexibility. These toys stimulate problem-solving ability. During the task of putting together pieces to replicate a certain structure, the children are stimulated to come up with unique solutions, which play a critical role in their cognitive development. In addition, such games also help improve social skills, cooperation, and team player acumen.

Toys play a crucial role in developing motor skills, spatial reasoning, cognitive flexibility, and social competence. In addition, well-chosen toys help in the overall development of children. Toys and games such as manipulatives, puzzles, collectibles, and matching that can be played either on a table, the floor, or the divider shelf offer children peaceful activity, thereby strengthening all areas of their development. For instance, bricks and blocks toys are included in the early grades of education. Holistic development toward creativity and imagination among children is the objective of including these games in kindergarten.

With increasing awareness among parents about the health hazards associated with plastic toys, parents in developed countries such as the U.S., and the U.K. are majorly purchasing sustainable toys. Moreover, to reduce carbon footprint, government bodies across the world are compelling business organizations to use recyclable materials for the manufacturing of various products. The adoption of smart toys in school is gaining traction with the development of the Internet of Things (IoT) and smart toys.

Product Insights

The bricks and blocks segment contributed to the largest revenue share of over 50% of the construction toys market revenue. The steady growth of the segment can be attributed to the rising consumer preference for toys that keeps kids engaged for long durations. Moreover, the manufacturers have been innovating the toy sets to include newer designs, replicating real-life scenarios, and creating awareness among kids. In March 2022, LEGO launched a new product called Dagny Holm, the first Master Builder in LEGO.

The tinker toys segment is expected to grow with the fastest CAGR of 7.5% from 2022 to 2030. These toys are more challenging and interesting and they can offer a broader scope of construction, which is accelerating the growth. The tinker toys include components such as caps, wheels, pulleys, sticks, and couplings, this stimulates creativity and logical thinking among the children. Moreover, the rising awareness about the strength, manipulation, grasp, and coordination of the children is expected to accelerate the growth of the tinker toys segment.

Material Insights

The polymer segment contributed to the largest revenue share of more than 35% of the global construction toys market in 2021. Among polymers, Polypropylene (PP) is one such variant increasingly being used in the construction toy market owing to its excellent elasticity and toughness. The rising importance of different thermoplastics on account of their lightweight, bright colors, and significant strength, is expected to drive the adoption of these materials for construction toys. This material is increasingly being used as an alternative to wood, which is expected to limit the deforestation of trees.

The wooden segment is anticipated to grow at a CAGR of 5.8% throughout the forecast period. Wooden toys are expected to gain popularity as they are safe for kids on account of being non-toxic and are projected to drive market growth. Wood-based products have excellent colors and textures, that are inviting and kindle the kids’ interest. These products can sustain for generations due to the durability of the material, which is anticipated to bode well for the growth of the segment.

Distribution Channel Insights

The supermarkets and hypermarkets distribution channel segment contributed to the largest revenue share of over 30% in 2021. Outline of the organized retail sector has ensured better visibility of consumer goods products; ease of access and instant availability of the products is expected to boost the growth. Moreover, the rapidly rising structured retail sector in emerging countries, such as China, India, and Japan, is further anticipated to accelerate the growth of the segment over the forecast period.

The online segment will register the fastest CAGR of 7.3% from 2022 to 2030. This can be attributed to the rising popularity and usage of e-commerce platforms across the globe.  In addition, these stores offer huge Christmas and New Year discounts which make online purchases more economical. Moreover, working-class parents find it convenient to shop online instead of visiting stores in person owing to the growing availability of products among consumers.

Regional Insights

North America emerged as the largest regional segment for construction toys with a revenue share of around 32% in 2021 owing to the increasing application of blocks and construction sets in kindergartens in the U.S. and Canada. Researchers and child psychologists from various universities in the U.S. use construction toys for analyzing the cognitive skills of kids. The U.S. construction toys industry is expected to be driven by the increasing demand from schools, education centers, daycares, and classrooms.

Asia Pacific is expected to expand at the fastest CAGR of 7.7% from 2022 to 2030. With the increasing awareness among parents about the role of construction toys in education and holistic growth, the demand for these products is expected to witness significant growth in developing economies including India and China.

Moreover, major manufacturers are launching traditional-style construction toys during the festival season in China. For instance, in November 2020, The LEGO Group introduced a complete set of four new LEGO sets called DUPLO, Story of Nian, Spring Lantern Festival, and Monkie Kids. The company has introduced these toys to celebrate classic Chinese culture in the country. These initiatives are boosting the demand for construction toys in the region over the forecast period.

Key Companies & Market Share Insights

Key industry participants are likely to increase their focus on developing new products. Some of the key players include Hasbro, K’NEX (Basic Fun, Inc.), Tegu, Mattel, and BANDAI NAMCO Group. The companies are rapidly innovating their product line, by modifying them to closely replicate real-life scenarios and recent events. Major film production companies are entering the market through partnerships. For instance:

• In August 2022: The LEGO Group announced that the company has officially opened a 33,850 m² expansion at its factory in Monterrey, part of a USD 500 million investment in the site which will increase production capacity to meet growing, long-term demand in the Americas region and globally

• In October 2021, Target Corporation and LEGO entered into a partnership with Limited-Edition Lifestyle Collection, and shared values of inclusivity, optimism, and joy, the curated collection of everyday

Some prominent players in the global construction toys market include:

• Hasbro

• K’NEX (Basic Fun, Inc.)

• Tegu

• Mattel

• BANDAI NAMCO Group

• Spin Master Ltd.

• The LEGO Group.

• PlayMonster LLC.

• KnuckleStrutz

• Magformers

• Schylling Inc.- Nanoblock

• Polydron (UK) Limited

• Ravensburger AG

Construction Toys Market Report Scope

Global Construction Toys Market Segmentation

This report forecasts revenue growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2017 to 2030. For this study, Grand View Research has segmented the global construction toys market report based on product, material, distribution channel, and region:

• Product Outlook (Revenue, USD Million, 2017 - 2030)

  • Bricks & Blocks

  • Tinker Toy

  • Others

• Material Outlook (Revenue, USD Million, 2017 - 2030)

  • Wood

  • Polymer

  • Metal

  • Others

• Distribution Channel Outlook (Revenue, USD Million, 2017 - 2030)

  • Hypermarkets & Supermarkets

  • Specialty Stores

  • Online

  • Others

• Regional Outlook (Revenue, USD Million, 2017 - 2030)

  • North America

    • U.S.

    • Canada

    • Mexico

  • Europe

    • Germany

    • U.K.

    • France

    • Italy

    • Spain

  • Asia Pacific

    • China

    • India

    • Japan

    • Australia

    • Indonesia

  • Central & South America

    • Brazil

  • Middle East & Africa (MEA)

    • South Africa