In recent years, the toy industry in China has undergone significant transformation, driven by increasing awareness of scientific parenting and a growing emphasis on children’s overall development. As family incomes continue to rise, parents are not only seeking entertainment value in toys but also prioritizing educational benefits, safety, and developmental advantages.
Data Overview:
Recently, Lin Kaizhe, Business Director at Chan Mama’s Hangzhou branch, analyzed the toy industry on TikTok’s e-commerce platform. His study covered the industry overview, sub-categories, and content trends, using data from June 2023 to May 2024.
The study focuses on five key categories: “Toy,” “Vehicle Toys,” “Educational Toys,” “Blocks,” and “Models.” It includes all related sub-categories under each of these main groups.
Data Sources:
The analysis mainly draws on data from TikTok’s e-commerce platform, specifically Chan Mama’s product line, with additional insights from Key Value Analytics.
Industry Overview: Steady Growth Led by Domestic Brands, with Young Women in Lower-Tier Cities as Key Consumers
The toy market on TikTok’s e-commerce platform has been expanding, although the growth rate has slowed as the industry matures. From 2021 to 2024 (forecasted), the industry’s compound annual growth rate (CAGR) is projected at 56%, outpacing the platform’s overall e-commerce market growth rate of 50% across all categories.
Key promotional events, such as the May 20th (520) shopping festival and the 2024 Good Products New Year’s Festival, represent peak sales periods for the toy category. In May 2024, these events, alongside the pre-618 shopping festival, contributed to over 50% of total market sales.
Competitive Landscape and Pricing Trends
Domestic brands, including international brands acquired by Chinese companies, dominate the market. International brands have seen a slight increase in Gross Merchandise Value (GMV) share, but domestic players remain strong.
- Price Segmentation: Toys priced between 0-30 yuan make up the largest sales volume, while those in the 10-300 yuan range drive the highest GMV.
- High-End Market Potential: Despite concerns about a broader consumption downgrade, toys priced above 1,000 yuan show strong growth potential. Consumers are increasingly willing to invest in high-quality, premium-priced products, creating opportunities for high-end offerings.
Consumer Demographics and Regional Trends
The toy industry’s consumer base is trending younger, with the 18-23 age group showing the fastest growth, while the core demographic remains 24-40 years old. Female consumers continue to dominate, though their share has slightly declined.
Regionally, lower-tier cities are emerging as key markets due to improvements in shopping accessibility and logistics. As e-commerce platforms enhance their reach, consumers in these areas represent high-potential users.
Sub-Categories: Puzzle Toys Lead in Market Share, Children’s Vehicles Show Rapid Growth
The TikTok e-commerce toy category is witnessing a shift. Traditional toys are growing slowly, while new categories such as educational and remote-control toys are on an upward trajectory.
- Children’s Vehicles: This category saw the fastest growth in 2024, with a 74% year-on-year increase in market size. Sales peak between March and May, driven by seasonal outdoor activities and major holidays such as Tomb Sweeping Day and Labor Day. Bicycles and electric vehicles are high-growth, high-scale products, while twist cars, though smaller in market size, exhibit strong growth potential.
- Puzzle Toys: This category holds the largest market share (54%), with sales surging during the 520 gift season and the Chinese New Year. Educational products like learning machines and early education devices significantly outperform non-educational toys, reinforcing the strong demand for early childhood education tools.
Brand Insights and Market Trends
Within TikTok’s MAT2405 children’s vehicle category, domestic brands dominate, with only one international brand among the top players. The leading brand, Phoenix, holds a 13.5% market share. The top 15 brands all have an average price above 100 yuan, with children’s bicycles, electric vehicles, scooters, and twist cars leading sales.
For puzzle toys, top brands specialize in learning machines, point-reading devices, and early education tools, reflecting strong consumer interest in educational functionality. Successful brands differentiate through superior product functionality, quality educational content, and competitive pricing.
Key Takeaways
- Educational value, safety, and multifunctionality are key factors driving consumer purchases.
- The toy industry continues to grow steadily, with domestic brands leading the market.
- High-end toys (above 1,000 yuan) present significant growth potential.
- Consumers are younger, predominantly female, and increasingly located in lower-tier cities.
- Children’s vehicles and puzzle toys are the strongest sub-categories, with puzzle toys dominating market share and children’s vehicles showing the fastest growth.
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