Saudi Arabia Toy Market Assessment, By Product Type [Action Figures & Accessories, Arts & Crafts, Building Sets, Dolls, Games/Puzzles, Infant and Toddler Toys, Battery Toys, Soft Toys, Toy Cars, Inflated Toys, STEM Toys, Others], By Age Groups [0-5 Years, 6-10 Years, 11-15 Years, 15+ Years], By Gender [Girl, Boy, Unisex], By Distribution Channels [Online Channels, Offline Channels (Specialty Stores, Hypermarket/Supermarket, Departmental Stores, Others)], By Region, Opportunities and Forecast, 2016-2030F

Saudi Arabia Toy Market size was valued at USD 422.85 million in 2022 which is expected to reach USD 1,135.93 million in 2030 with a CAGR of 13.21% for the forecast period between 2023 and 2030. Saudi Arabia is one of the largest markets for toys in the Middle East and has been growing rapidly due to a growing demand for toys from children and parents, high spending power of parents, and a rising demand for quality and innovative toys and rising population of children. The toy market in Saudi Arabia is mainly facilitated by imports, with most toys being sourced from countries such as China, Japan, and the United States. The toy market in Saudi Arabia is also heavily influenced by international brands, such as Disney, Barbie, and Lego.

The Saudi Arabian government has implemented various regulations to ensure the safety of toys imported into the country. These regulations are in line with international standards and cover aspects such as product quality, packaging, and labelling. Without proper and complete certification & documentation, importers risk incurring large penalties on their goods or having their goods turned away completely by Saudi customs. Apart from this, the government also encourages local production of toys to boost the economy and create employment opportunities. Moreover, according to the Saudi state-run TV station al-Ekhbariya, Saudi government officials banned rainbow-colored toys and clothes from shops in the country's capital, Riyadh, claiming the goods promote homosexuality. Hence such instances had been influencing the Saudi Arabia Toy market over the historical period and is expected to continue in the coming years.

Growth in Online Sales, Offline to Continue Dominance

The toy market in Saudi Arabia has experienced significant growth in online sales in recent years. This trend is being driven by factors, including the increasing availability of high-speed internet and mobile devices, as well as the convenience and accessibility of online shopping. Online retailers have also invested in improving their e-commerce platforms to offer a more seamless and user-friendly experience for consumers. This has led to a shift in consumer behaviour, with many parents opting to purchase toys online rather than in physical stores. The COVID-19 pandemic has further accelerated this trend, as more consumers have turned to e-commerce platforms to avoid physical stores and minimize the risk of exposure to the virus. According to Mada Cards, online sales performed through Mada cards soared by 106% year-on-year to reach USD 1.83 billion (SAR 6.87 billion) in August 2021 as compared to 0.89 billion (SAR 3.33 billion) in 2020. Therefore, online sales of toys are expected to continue to grow in Saudi Arabia in the coming years, presenting opportunities for retailers to expand their online offerings and reach a wider audience.

Focus on Sustainability and Eco-Friendly Toys

There is a growing focus on sustainability and eco-friendly toys in the toy market in Saudi Arabia. Parents are becoming increasingly aware of the environmental impact of plastic and other non-biodegradable materials used in toys and are seeking out more sustainable alternatives. Toy manufacturers are responding to this demand by creating toys made from renewable materials such as bamboo, wood, and recycled plastic. Moreover, many manufacturers are incorporating environmentally friendly practices into their production processes, such as reducing waste and using eco-friendly packaging. For instance, in 2020, Lego announced that it is inclining towards eco-friendly toys including sustainable bricks and has set an ambitious target to be 100% eco-friendly by 2030. Further, as consumers become more conscious of the impact of their purchasing decisions, the demand for sustainable and eco-friendly toys is expected to continue to grow in Saudi Arabia. This trend is not only good for the environment, but it also presents an opportunity for companies to differentiate themselves in a crowded market and appeal to socially conscious consumers.

Influence of Social Media and Digital Entertainment 

Social media platforms, such as Instagram and YouTube have become powerful channels for toy promotion and marketing. Influencers and content creators collaborate with toy brands to showcase their products, generating a strong desire among children to own these toys. The engaging and interactive nature of digital entertainment, including video games, apps, and online content, has also contributed to the demand for toys. Children often seek toys that are inspired by their favourite digital characters or experiences. Apart from this, children of Saudi Arabia rank the highest among other nations in terms of owning digital and smartphone devices, as of 2022, more than 70% of the children have their own smartphone and tables to access digital content. Owing to this, toy manufacturers and retailers have recognized the influence of social media and digital entertainment, incorporating popular characters, themes, and digital tie-ins to capture the attention of young consumers and drive sales in the Saudi Arabia toy market.

The Growing Demand for STEM Toys 

The Saudi Arabia toy market is experiencing a growing demand for STEM (Science, Technology, Engineering, and Mathematics) toys. As the country focuses on diversifying its economy and investing in technology and innovation, there is an increasing emphasis on promoting STEM education among children. Parents and educators recognize the importance of developing skills in these areas for future career prospects. This trend has led to a surge in the popularity of STEM toys that engage children in hands-on learning, problem-solving, and critical thinking. Manufacturers and retailers are responding to this demand by offering a wide range of STEM toys, thereby contributing to the overall growth of the Saudi Arabia toy market.

Impact of COVID-19

The COVID-19 pandemic has had a mixed impact on the toy market in Saudi Arabia. On one hand, the closure of physical stores led to a decrease in retail sales of toys, while delays in supply chains and manufacturing processes have led to a delay in the launch of new toys. On the other hand, the pandemic has led to an increase in online sales of toys, as well as a rise in demand for STEM and educational toys. As families spend more time at home, parents are opting for toys that can keep their children engaged and entertained, while also offering opportunities for physical activity and learning. While the pandemic has posed challenges for the toy industry in Saudi Arabia, it has also presented opportunities for growth and adaptation.

Saudi Arabia Toy Market: Report Scope

“Saudi Arabia Toy Market Assessment, Opportunities, and Forecast, 2016-2030”, is a comprehensive report by Markets & Data, providing in-depth analysis and assessment of the current scenario of the Toy market in Saudi, industry dynamics and opportunities, and forecasts (2023-2030). Additionally, the report profiles the leading players in the industry mentioning their respective market share, business model, competitive intelligence, etc.

In this report, Saudi Arabia Toy Market has been segmented into following categories:

1.       By Product Type

1.1.    Action Figures & Accessories

1.2.    Arts & Crafts

1.3.    Building Sets

1.4.    Dolls

1.5.    Games/Puzzles

1.6.    Infant and Toddler Toys

1.7.    Battery Toys

1.8.    Soft Toys

1.9.    Toy Cars

1.10.                     STEM Toys

1.11.                     Inflated Toys

1.12.                     Others

2.       By Gender

2.1.    Girl

2.2.    Boy

2.3.    Unisex

3.       By Age Groups

3.1.    0-5 Years

3.2.    6-10 Years

3.3.    11-15 Years

3.4.    15+ Years

4.       By Distribution Channels

4.1.    Online Channels

4.2.    Offline Channels

4.2.1.Specialty Stores

4.2.2.Hypermarket/Supermarket

4.2.3.Departmental Stores

4.2.4.Others (Stationery shop, Mom & Pop Store)

5.         By Region

5.1.    Central

5.2.    West

5.3.    East

5.4.    North

5.5.    South

Key Player Landscape and Outlook

The toy market in Saudi Arabia is highly competitive, with a range of local and international players vying for market share. In addition to these major players, there are also many smaller, local toy manufacturers and retailers that operate in the Saudi Arabian market. These companies are focusing on niche markets or offer unique products that differentiate them from larger competitors. Overall, the competitive landscape of the Saudi Arabian toy market is diverse and constantly evolving, with new players and products entering the market on a regular basis. However, one of the key trends being observed among the leading companies that they are trying to connect socially and building local communities, thereby enhancing their brand equity. This would help toy companies retain market share. For example,

According to a report published by Lego Middle East and South Africa “Lego Play Well 2022”, more than 86 percent of parents in Saudi Arabia believe that playing enables children and toddlers to learn new things and Lego products help in their development.

Market Xcel’s reports answer the following questions:

 •    What is the current and future market size of the product/service in question globally or specific to different countries?
•    How are the markets divided into different product/service segments and the market size and growth of each segment? 
•    What is the market potential of different product segments and their investment case?
•    How are the markets predicted to develop in the future and what factors will drive or inhibit growth?
•    What is the business environment and regulatory landscape specific to the product/service?

Key Players Operating in Saudi Arabia Toy Market

·         Dream International Limited

·         LEGO System A/S

·         Hamleys

·         Mattel, Inc.

·         Jazwares, LLC

·         Playmates Toys Limited

·         Hasbro, Inc.

·         Maisto International, Inc.

·         Intex Recreation Corp

·         Walt Disney Company

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