Global Toy Industry Leaders Gather in Beijing: Key Insights and Trends from the 50th ICTI Annual Meeting

The 50th International Council of Toy Industries Annual General Meeting (ICTI AGM) concluded successfully in Beijing from June 5 to 7. Hosted by the China Toy and Juvenile Products Association (CTJPA), the event brought together representatives from 14 countries and regions, including the USA, Brazil, Mexico, the UK, Germany, France, Spain, the Netherlands, Australia, China, Chinese Taipei, and Hong Kong SAR.

Group photo of the 50th International Council of Toy Industries Annual General Meeting

Global Insights

The meeting focused on emerging trends in the global toy market and the Chinese market. Circana Group, a leading market research firm, presented its 2023 global toy market report. The report highlighted that the market reached USD 108.7 billion in 2023. Notable growth was observed in the Netherlands (6%), China (2.7%), and Mexico (2%), while France's sales remained stable.

Since 2018, the global toy market has grown by an average of 3.3% annually, with all regions showing gains except Africa and Oceania. Spending per child has increased by 4%, largely driven by growth in the Americas. Developed countries have seen more rapid toy sales growth over the past five years.

While children under five remain the largest age group, their growth rate is the slowest. Conversely, sales of toys for children over 15 have surged by 103% since 2018.

Additionally, licensed toys have hit record sales, with their market share rising in 2023, though this trend did not extend to Mexico and Brazil.

May Liang, President of CTJPA

China's Market Dynamics

At the conference, May Liang, President of CTJPA, provided a detailed overview of China’s toy and juvenile products industry:

· Industrial Concentration: China now boasts 27 major toy and juvenile product manufacturing clusters, concentrated in nine provinces, with Guangdong and Zhejiang standing out as the leading production centers.

· Export Trends: Despite a slight dip in 2023, exports of toys, strollers, and children’s ride-on products from China remain higher than in 2019 and 2020. The first quarter of 2024 shows a positive rebound, with toys rising by 3.0% to USD 8.53 billion, children’s ride-on products increasing by 2.7% to USD 1.13 billion, and strollers up by 13.8% to USD 420.74 million.

· Domestic Growth: Retail sales of toys in China reached CNY 90.69 billion in 2023, a 2.7% increase from the previous year. E-commerce platforms, especially Tmall, JD.com, and Douyin, are key sales channels.

· Product Trends: Sales of action figures and high-priced plush toys are on the rise, with significant growth noted. Between 2019 and 2023, action figure sales on Tmall increased by 194%, while high-priced plush toys also showed consistent growth. IP-licensed toys are also gaining popularity. About 22% of toy companies have engaged in IP licensing, with plush toy companies accounting for 29% and designer toy companies 58%.

· Licensing Market Outlook: From 2019 to 2023, China's licensing market saw continuous growth in both retail sales and license royalty revenue. In 2023, retail sales of licensed products reached CNY 140.1 billion, with license royalty revenue at CNY 5.47 billion. The number of licensed IPs grew by 3.1% to 2,483, while the total number of licensors increased by 1.4% to 654.

Peter Handstein, Crystal Zhong, and Karen Chen speaking at the 50th ICTI AGM

At the Chinese market session, industry leaders represented by Peter Handstein, founder and CEO of Hape Holding AG, Crystal Zhong, Managing Director of Kidsland China, and Karen Chen, Vice-President of POP MART International Group, discussed China's business environment, strategies for international brands, and toy innovations. Delegates praised China's consumer market and manufacturing strengths, highlighting its crucial role in global toy industry growth.

Delegates speaking at the 50th ICTI AGM

Emphasizing the Value of Play

The meeting underscored the importance of play in child development, with support from 140 countries for the International Day of Play on June 11, as established by the United Nations. ICTI members are committed to enhancing children's right to play and integrating educational value into toys.

The ICTI Annual Award presented to Young Zen Foundation

Awards and Recognition

The ICTI Annual Award was presented to Zhou Weiyan, founder of the Young Zen Foundation. Established in 2013, this 4A-level charity has pioneered social welfare and children’s services. Zhou's "Billion Future Community Children's Sports Hall" project supports children aged 0-6 and their families. She also initiated the China Child-Friendly Community Promotion Plan, releasing the first national "Child-Friendly Community Construction Specifications" and advancing pilot projects nationwide.