Toymakers heed parents’ concerns on children’s early development and make traditional toys with digital twist
- A backlash against technology by parents and a need for physically interactive and stimulating products is keeping traditional games in demand
- China, the region’s largest market, will account for 54 per cent of the traditional toy market in Asia by 2022, according to Euromonitor
First came dolls and puzzles, then video games and smartphones. But traditional toys may be making a comeback, with a twist, whether it is teaching robotics to toddlers or giving children the experience of unboxing toys like YouTubers.
Global internet and smartphone penetration has facilitated the boom of video games to spearhead the toy industry, but industry observers say traditional games will still play a strong role in the future, particularly in Asia.
Besides, a backlash against technology by parents and a need for physically interactive and stimulating products is keeping traditional games in demand, particularly new versions with added elements of technology.
“Video games are easy to access, seemingly more interactive, but if you look at one of the largest video game markets, China, they are receiving a lot of backlash,” said Jonathan York, senior analyst at Euromonitor International. “Traditional toys are catching up from a tech stand point, [as] they are interactive. Having that satisfaction of interacting with a toy is different, especially in the eyes of parents where they feel there is more of a learning curve, more stimulus.”
According to Euromonitor, video games (inclusive of online and mobile) had a global compound annual growth rate (CAGR) of 8.8 per cent from 2007 to 2017, from US$52 billion to almost US$120 billion. Traditional games’ CAGR, meanwhile, was 3.8 per cent, from almost US$59 billion to US$85 billion.
The market research company predicts video games’ growth to slow through 2022 as mobile penetration saturates, dropping to just 3.7 per cent between 2021 and 2022, while traditional games maintain around a steady 2 per cent growth across each of the five years.
The pattern holds true in Asia where video games take the largest chunk of the market but are slowing down.
As birth rates decline and children interact with less family members, parents are rejecting constant screen time and spending growing household incomes on physical toys that stimulate and educate.