Korea Toys Market Overview
Rising demand for replica of cartoon characters that are being displayed in television shows, as well as for goods whose replica can be made as toys, coupled with the rising influence for toys from social media are some of the factors believed to benefit the expansion of the Korea toys market. Numerous cartoon characters are being showed in television in the recent years. The kids, who watch these shows, tend to follow the cartoon characters. As a result, there is a rising demand amongst the parents to purchase such toys for their children, which is anticipated to contribute towards the growth of the Korean toys market. Moreover, with the growing internet penetration and the rising influence of social media, kids are more or less demanding their parents for toys which they find in these social platforms. Such factors are therefore anticipated to contribute significantly towards the growth of the Korea toys market. Further, the Korea toys market is slated to grow at a highest CAGR of around 4% over the forecast period 2019-2027. Further, the Korea toys market accounted for a value of around USD 2900 million in the year 2018 and is predicted to reach a value of around USD 4300 million in the year 2027. Additionally, the market is predicted to attain an absolute $ opportunity of around USD 1400 million during the assessment period.
Market Segmentation Synopsis
The Korea toys market is segmented on the basis of product into outdoor & sports toys, preschool toys, building sets, action figures, dolls, art & crafts, plush, vehicles and others. The outdoor & sports toy segment, which held a market share of around 31% in the year 2018, is anticipated to grow with a CAGR of around 5% during the forecast period and reach a value of around USD 1300 million by the end of 2027. Additionally, the segment is anticipated to attain an incremental $ opportunity of around USD 70 million in the year 2027 as compared to the previous year.
By Distribution Channel
The Korea toys market is also segmented on the basis of distribution channel into online and offline. The offline segment is further sub-divided into hypermarket, specialty stores, supermarket and others. The hypermarket segment, which held a market share of around 41% in the year 2018, is anticipated to gain a value of around USD 1100 million by the end of 2027 by growing at a CAGR of around 3% during the forecast period. Additionally, the segment is anticipated to attain an incremental $ opportunity of around USD 10 million in the year 2027 as compared to the previous year. The footfall in a hypermarket is high in comparison to other retail outlets on the back of hypermarkets being a very large establishment along with the presence of a wide array of products which are displayed to lure customers.
Market Drivers and Challenges
According to the statistics by the United Nations Inter-agency Group for Child Mortality Estimation (2019), mortality rate of children in-between the age group 5-14 years decreased from 1.19 deaths per 1000 children aged 5 in the year 2010 to 0.75 deaths per 1000 children aged 5 in the year 2018.
Additionally, according to the statistics by the World Bank, the population of Republic of Korea grew from 49.94 million in the year 2011 to 51.64 million in the year 2018.
Korea as a nation has been facing challenges of lower birth rate, which has significantly reduced the total number of population of kids in the nation. Additionally, significant number of mortality rates observed amongst the kids aged 5-14 years over the years effected the sales of toys massively. In the recent years, with the focus of the government, there is a decrease in the mortality rate of the kids and also the total population in the nation has grown significantly. The nation has also seen a growth in the population of kids in the recent years which has raised the hope of manufacturers of toys to increase their production and meet the demand of the consumers. Such a factor is anticipated to drive the growth of the Korea toys market. Additionally, growing interest of parents to spend more on products that help their children to learn and gain knowledge, especially educational toys and others is also anticipated to drive the growth of the Korea toys market.
The concern for high price of few toy products along with the concern for the instability in the total kids’ population in the nation are some of the factors anticipated to limit the growth of the Korea toys market.
Top Featured Competitive Landscape
Some of the affluent industry leaders in the Korea toys market are Infomark Corporation, VTech Electronics North America, LLC, YOUNGTOYS, Inc., EFOLIUM Co., Ltd., Mimi World Co., Ltd., AURORAWORLD Corp., Iringo Co. Ltd., Hamleys, Mattel and Sieper GmbH.