KSA Toy Market Outlook to 2027

Market Overview:

With a forecasted robust growth rate, the KSA toy market benefits from the increasing number of dual-income families and working women nationwide. The market is propelled by outdoor and sports toys that contribute to children's physical development. Growing awareness among millions of parents about the advantages of toys is expected to further fuel market expansion in the coming years.

A growing economy with ~9 Mn population lying in the age range of 0-14, Saudi Arabia presents tremendous growth opportunity for the toys market. The evolving economy further accentuates the market opportunity available. Talking about the current scenario, more than 99% of the toys in KSA are imported from different countries with negligible domestic manufacturing in the country which calls for a desperate need to develop the domestic market as the market already has the presence of 1000+ manufacturers, 10+ distributors and 2000+ retailers in KSA toys market.

KSA Toy Market Analysis

• A growing economy with ~9 Mn population lying in the age range of 0-14, Saudi Arabia presents tremendous growth opportunity for the toys market
• More than 99% of the toys in KSA are imported from different countries with negligible domestic manufacturing in the country
• KSA toys market is characterized by presence of 1000+ manufacturers, 10+ distributors and 2000+ retailers in KSA toys market
• Toy industry in KSA is characterized by rising impact of social media, popularity of experiential learning, more focus on quality standards and customer reach.

Key Trends by Market Segment:

By Type of Product: Scooters & Ride-on captured the largest part captured the largest chunk of the market growing at a rate of 13.1%. Increasing availability of educational toys that are both entertaining and informative is going to lead the growth of educational toys in incoming years.Scooters and ride-ons is one of the most popular categories and is going to increase significantly in future as well. Increasing population will lead to increase in market of baby toys.

By Distribution Channel: Offline channel dominated the marked capturing a market share of 83% whereas the online channel captured a mere 16.5%. Children aged 0-2 hold a market share of 20.8% together in 2022, which is expected to increase by 2027. Parents of this age group are keen on purchasing sensory and developmental toys like teething rings and plush toys with different textures and sounds. Eco-friendly and sustainable toys like wooden blocks and organic cotton dolls are also gaining popularity among parents.

Competitive Landscape:

• Number of SKUs, Brand collaborations and Geographical Presence are some of the key competition parameters in KSA Toys Market.
• KSA toys market is characterized by presence of 1000+ manufacturers, 10+ distributors and 2000+ retailers in KSA toys market.
• The market consists of a lot of brands out of which Mattel, Hasbro, MGA Entertainment, Clementoni, Lego, Spin master are some of the prominent ones.
• Toy Triangle & SAMACO are leaders in Toy distribution market while other players are categorized as niche players, challengers and visionaries based on the number of SKUs and retail tie-ups.

 Recent Developments:

• The COVID-19 pandemic has had an impact on the market, with an increased demand for indoor toys as families spent more time at home. The market has been driven by increasing Expat population in the country, and growth of e-commerce and retail sector.
• Companies are battling against each other to partner with different brands, expand SKUs and geographical presence and are taking various marketing initiatives.
• Saudi Arabia is hosting the 2023 Global Esports Games in Riyadh Wksa Toy which is expected to impact the KSA Toy market.
• Through the Public Investment Fund, the government aims to tap into the $184 billion gaming market and foster a thriving gaming ecosystem in Saudi Arabia.
• In April 2021, STC signed a MOU with the SAFEIS as a strategic partner & digital enabler. In June 2021, NEOM signed a Memorandum of Understanding with SAFEIS to host an electronic sports event in the city.

Future Outlook:

The KSA Toy market size is projected to experience steady growth over the years, increasing from 6.1 SAR Bn in 2022 to 9.7 SAR Bn in 2027 due to rising household income, rapid growth of e-commerce and retail sector.

• The market is going to be driven by factors such as population growth, rising disposable incomes, and expansion of retail as well as e-commerce sector, and increasing focus on quality and safe products
• With more gadgets entering the market share of 9 to 16 and above age group is going to reduce due to their preference of playing on mobiles and PCs, while the market of traditional toys in early ages can’t be replaced that easily, leading to higher share of 0 to 8 age group.
• Saudi Arabia is currently building several smart cities (including NEOM, Red Sea, Qiddiya, Waad Alshamal, and SPARK), and aims to be the world’s most connected and digitized nation by 2030. And with increasing electronic payment, e-commerce sector is going to bloom more and more. 
• Advances in technology are leading to the development of more sophisticated and toys with advanced safety features.