GCC toy industry game for growth

Dubai - Construction toys expected to make comeback as fastest-growing toys category regionally and globally

The toy industry in the UAE and GCC region will enjoy an upswing in sales, driven by the traditional toys and video games segment, experts said.
According to data by Euromonitor International, the GCC toys and games sector will grow at a rate of 10.3 per cent to reach $3.3 billion by 2022. The GCC will also see a 9.5 per cent rise in the traditional toy market by 2022 with the regional sector growing in value to $1.8 billion.
In addition, Euromonitor also revealed that construction toys are expected to make a comeback as the fastest-growing toys category globally, with a forecasted compound annual growth rate of 6.8 per cent from 2016 to 2021.
"The bullish forecast for the traditional toy sector comes as no surprise for a region where 24 per cent of the current population is under the age of 15 and where the IMF has forecasted population growth to 57 million by 2025 and by a further 14 million by 2050, which translates into significant opportunities for toy manufacturers and suppliers," said Alexandria Robinson, show director for Paperworld Middle East.
Within the traditional toy segment, the GCC's top-selling products over the next four years - all recording double-digit annual growth - will be construction games at 14.2 per cent; baby and infant playthings at 10.6 per cent; and dolls and accessories at 10.4 per cent.
Vicken S. Setrakian, managing director of Party Centre, identified another growth in the party category as families look to creating memorable experiences when celebrating important life events such as birthdays.
"All GCC countries are experiencing growth for the party category as consumers are learning about celebrating birthdays and other life events, creating great experiences and memories for their children and friends," he said.
"Key influences on the market include modern lifestyle, travel, a more open society, tolerance and great party products available in the market previously only available in Europe and the United States."
Another segment that has been witnessing a record spike in sales has been the video games segment, which will see an 11.6 per cent increase by 2022 to grow to a value of $1.51 billion. The interest in video games has translated into teens and young adults looking to find experiences which merge the physical and digital worlds.
Sameer Ali, managing partner at Immersive Experiences, said that there has been a massive growth in the teen's experiential industry in the UAE.
"Only just a few years ago, children and young adults had a very limited choice of entertainment," he said.
"We're seeing a real shift in how families are behaving as a unit throughout the year; many are now staying in the UAE for the summer holidays, rather than clearing out to cooler climates, which means that children and young adults are looking for more to do than visit the cinema and walk around a mall."
He disclosed that soft play areas have been around for a while, but that there is still a real lack of entertainment for teens looking for something fun to do with their friends.
- rohma@khaleejtimes.com