Southeast Asian Toy Market: A New Blue Ocean for Global Growth

Southeast Asian Toy Market: A New Blue Ocean for Global Growth

While the European and American toy markets are struggling with sluggish growth due to inflationary pressures and weakened consumer spending, Southeast Asia is quietly emerging as a “new growth engine” for the global toy industry, driven by strong economic momentum, a large young population base, and rapidly evolving consumer demand. From high-end IP toys in Singapore to STEM educational products in Vietnam, from the booming live-streaming sales on TikTok Shop to themed pop-up stores in shopping malls, this region, home to 687 million people, is unleashing remarkable market potential.

I. Market Size: Southeast Asia’s Growth Miracle in a Trillion-Dollar Market

The steady expansion of the global toy market has laid the foundation for Southeast Asia’s boom. According to IMARC Group data, the global toy market size exceeded $113.9 billion in 2024 and is expected to reach $196.3 billion by 2033, with a compound annual growth rate (CAGR) of 6.2%. Southeast Asia, in this wave, is demonstrating vitality far exceeding the global average – Statista data shows that the Southeast Asian toy and hobby market size was approximately $22.7 billion in 2024, expected to climb to $24 billion in 2025, maintaining a steady growth of 5.8% CAGR from 2024 to 2028.

Even more noteworthy is the explosive growth in specific segments: the Southeast Asian toy and game sector is expected to grow to $4.55 billion by 2029, with an average annual growth rate of nearly 9%; categories such as dolls and plush toys are maintaining double-digit growth, becoming the core driving force of the market. This growth is not accidental, but rather the result of multiple favorable factors:

Continued benefits from RCEP: Since its entry into force in 2022, policies such as zero tariffs and unified rules of origin have significantly reduced regional trade costs. ASEAN countries, as core members of RCEP, are direct beneficiaries of this toy trade. At the 134th Canton Fair in 2024, over 100,000 buyers came from countries participating in the Belt and Road Initiative, accounting for 64% of the total. The number of new buyers from ASEAN countries increased by nearly 70% year-on-year, directly reflecting the strong regional demand for procurement.

The “golden advantage” of demographic structure: ASEAN is one of the regions with the highest population density in the world. In 2022, the six major potential markets of Singapore, Malaysia, and Indonesia had 175 million children under 14 years old, accounting for 27% of the total population, with an estimated purchasing power for children’s products exceeding US$3.5 trillion. More importantly, the average ASEAN family has two or more children, and the median age of the population is below 40 – this young parent group not only has a strong willingness to consume, but also has much higher demands for the “educational attributes” and “quality requirements” of toys than the previous generation, providing a foundation for market upgrading.

Economic growth supports consumption upgrading: In 2022, ASEAN’s GDP grew by 5.7% year-on-year, and even facing global economic pressure in 2023, it still maintained a growth rate of 4.7%. Stable economic growth directly drives cultural and entertainment consumption. Coupled with the strong Western holiday atmosphere (Halloween, Christmas, etc.) and local celebration traditions in some ASEAN countries, the demand for party supplies and holiday-themed toys continues to rise, forming a unique market characteristic of “seasonal surges in orders.”

II. Core Countries: Segmented Opportunities under Differentiated Demands

Southeast Asia is not a single market; different countries have significant differences in economic levels, consumption habits, and product preferences. Precisely understanding the characteristics of each country is crucial to unlocking deeper potential.

1. Singapore: A “Sophisticated Market” for High-End and Eco-Friendly Products
As the most economically developed country in ASEAN, Singapore, despite its population of only 5.64 million, has become a “testing ground for high-priced toys” due to its high consumption power. Local consumers have extremely high demands for toy brands and IP attributes; high-end products from brands like LEGO and Pop Mart are mainstream. At the same time, there is a strong environmental awareness – “green toys” made from recycled plastic, bamboo, and organic cotton, even if priced 30% higher than ordinary products, can still gain market share through their “sustainable concept.” It’s worth noting that Singapore’s toy consumption landscape is highly diversified: the “trendy toy terminal” at the airport, flagship stores in shopping malls, and toy sections integrated into bookstores complement each other, and online channels are expected to account for nearly 30% by 2025, making it the country with the highest online penetration rate in Southeast Asia. For players targeting the high-end market, Singapore is an ideal starting point for building brand premium and testing new products.

2. Indonesia: A “Blue Ocean for Baby Toys” Driven by Demographic Dividends
As the world’s fourth most populous country (276 million people), Indonesia has over 70 million children under 14 years old, and the number of middle-income families is growing at an average annual rate of 8%, directly driving a surge in demand for baby toys and early education toys. Industry analysts predict that in the next five years, Indonesia will become the fastest-growing market for traditional toys and games in the Asia-Pacific region, with a growth rate potentially exceeding 12%.
Indonesian toy consumption shows characteristics of both “downward expansion and upgrading”: first-tier cities (Jakarta, Surabaya) have a high acceptance of IP toys and electric toys, while second- and third-tier cities still mainly focus on cost-effective classic toys (building blocks, puzzles). In terms of online channels, local platforms Tokopedia and Bukalapak share the market with international platforms Shopee and Lazada, with e-commerce transactions accounting for over 20% of total sales in 2023 and still growing rapidly.

3. Vietnam: A “Boom in Educational Toys” Driven by a Young Population
Vietnam is moving towards the “billion-population club” (currently 98.18 million people), with an average age of only 33 years old, and 73% of the population under 35, making it one of the “youngest” markets in Southeast Asia. As young parents place increasing importance on their children’s education, “learning through play” educational toys have become mainstream – sales of coding toys, robot kits, and STEM products are growing at an average annual rate of over 15%, and related short videos on TikTok Shop Vietnam have repeatedly exceeded 100 million views. The Vietnamese market is highly price-sensitive, with 80% of toy consumption concentrated in the $0-10 price range. However, the mid-to-high-end market is showing potential: electric and smart toys priced above $50 already account for over 10% of GMV, and their growth rate is twice that of low-priced products. Offline channels still dominate (approximately 85%), but the rise of TikTok live streaming is changing consumer habits, with Vietnamese toy live streaming GMV increasing by 230% year-on-year in 2024.

4. Thailand: A “High-Consumption Hub” for Party and Outdoor Toys
Thailand is the second-largest toy market in Southeast Asia. In 2024, TikTok Shop’s toys and hobbies category achieved over $260 million in annual GMV, ranking first among Southeast Asian sites. Outdoor toys, party supplies, and plush toys contributed more than 60% of sales. The Thai “party culture” is a key driving force – whether it’s Christmas, Songkran, birthdays, or graduation ceremonies, toy-related party supplies are essential. During the holiday season from November to January, sales of these categories can account for 40% of the year’s total.

The “head effect” is significant in the Thai market: brands like Pop Mart, Lego, and Mattel dominate the mid-to-high-end market, while local brands capture the mid-to-low-end market with cost-effective DIY toys and inflatable toys. In terms of offline channels, shopping mall theme stores, claw machines, and pop-up stores are key traffic drivers. Toy stores in shopping districts like Mega Plaza and Siam Square in Bangkok can achieve monthly sales per square meter of up to $3,000.

III. Consumption Trends: Upgrading from “Entertainment” to “Value”

The growth of the Southeast Asian toy market stems not only from scale expansion but also from a profound evolution of consumer demand – toys are shifting from “single entertainment tools” to “educational carriers,” “social symbols,” and “gift choices,” giving rise to several high-potential niche segments.

1. Learning Through Play: Educational Toys Become a “Necessity”
The changing parenting concepts of young parents have made “learning through play” a common consensus. 1. STEM Toys and Educational Products:
STEM toys from Vietnam, early childhood learning machines from Indonesia, and children’s building blocks from the Philippines often see sales 3-5 times higher than usual during back-to-school seasons and holidays. Taking the Philippines as an example, during the 2024 back-to-school season, sales of the “educational toys” category on a certain e-commerce platform increased by 320% year-on-year, with “phonics learning machines” and “math puzzles” becoming bestsellers.

2. The Rise of Trendy Toys: The “Social Attributes” of IP and Blind Boxes
Influenced by social media platforms like TikTok and Xiaohongshu, trendy toys are rapidly penetrating Southeast Asia. Pop Mart’s first store in Thailand achieved sales exceeding 2 million RMB on its opening day in 2024, setting a global single-day sales record for its stores; local trendy toy brands are also emerging, with Indonesia’s “Indo Toy” and Malaysia’s “Moe Toys” gaining millions of followers in the region thanks to local IPs (such as Peranakan culture and tropical animal images).
Blind boxes are the “growth engine” of the trendy toy market. In markets like the Philippines and Singapore, the repurchase rate of blind box toys exceeds 40%, far higher than ordinary toys (15%). “Unboxing short videos” have become the core of dissemination; the #ToyBlindBox topic on TikTok has garnered over 5 billion views, driving sales growth of related products.

3. Gifting Culture: The “Premium Potential” of Customized Toys
Southeast Asia’s gifting culture has opened up new scenarios for the toy market – exquisitely designed toy gift boxes account for over 30% of gifts for newborns and children’s birthdays, and the average price is 2-3 times that of ordinary toys. Demand for “personalized customized toys” (such as engraved building blocks and exclusive IP dolls) is strong in Singapore and Malaysia, with some brands requiring orders to be placed two weeks in advance.

IV. Channel Challenges and Breakthrough Strategies

Despite the huge potential of the Southeast Asian toy market, entrants still need to address three major challenges: “fragmented channels,” “intense international competition,” and “high localization requirements”:

Fragmented Channels: Southeast Asia lacks a unified channel system. Online sales account for nearly 30% in Singapore, while offline sales still account for 85% in Vietnam; Thailand relies on TikTok live streaming, while Indonesia has stronger local e-commerce platforms. Businesses need to “adapt to local conditions”—focusing on online operations in Singapore and the Philippines, cultivating offline distributors in Vietnam and Thailand, and pursuing a dual online and offline strategy in Indonesia.

Competition from international brands: International giants like Lego, Mattel, and Hasbro have been operating in Southeast Asia for many years, occupying 30%-40% of the mid-to-high-end market share. New entrants can break through by “differentiation”: focusing on niche categories (such as STEM toys in Vietnam and baby toys in Indonesia), or incorporating local culture (such as Songkran-themed toys in Thailand), thus avoiding direct competition.

Localization challenges: Cultural differences directly affect product acceptance—Thai mothers prefer light-colored toys, Vietnamese parents reject “frightening” dolls, and Indonesia has stricter safety certification requirements for toys than other ASEAN countries. Conducting thorough market research and adapting to local aesthetics and regulations in advance is key to mitigating risks.

Conclusion: Southeast Asia – The next global growth engine for toys
From $22.7 billion to a projected $45 billion in 2029, the growth of the Southeast Asian toy market is not only about “scale expansion” but also about “upgrading demand.”