Market Overview

The domestic toy market (9 major categories) for FY2021 attained 715,300 million yen, down 1.5% from the preceding fiscal year (based on the shipment value at manufacturers). Meanwhile, by 8 major categories, i.e., excluding TV games, the market increased to 382,300 million yen, up 12.0% year on year. As the mood for voluntary lockdown fades and become less enthusiastic about improving quality of time spent at home, the jigsaw puzzle market, which had grown significantly in the previous year under the pandemic situation, saw a double-digit decline (down 15.1%). On the other hand, the market of toys for building scale models and for hobbies stayed strong (up 9.7%). The most noteworthy trend is the growth of the trading card game market. The expansion has ballooned the boys’ characters & toys market by 40.1% from the previous fiscal year, expanding the market size of the total of 8 major categories. Meanwhile, the market size of the total of 9 major categories had a decline in FY2021 as a repercussion of the preceding year, where some toys were demanded highly as means to enjoy “home nesting”.

Noteworthy Topics

Rapid Expansion of Capsule Vending Machine Specialty Shops

Dramatic expansion of large-scale capsule toy vending machine shops owned by toy makers or toy wholesalers is seen in the market. Some of them even have more than 1,000 vending machines at a single location. In addition to such large-scale venues, the rise of tenant vacancy rates at commercial facilities during the corona crisis has increased the number of smaller spaces with “gacha machines" (capsule toy vending machines). The business operated mostly without manpower, i.e., the nature of capsule vending machine specialty shops, is not only successful in terms of infection prevention, but is also favorable from sales efficiency perspective, considering its low unit sales prices.

Future Outlook

The domestic toy market as a total of 9 major categories for FY2022 is forecasted to grow by 0.6% from the preceding fiscal year to 719,900 million yen. As a total of 8 major categories (meaning not including TV games), it is projected to rise by 4.6% from the previous fiscal year to 399,900 million yen. Even in the situation where consumers are increasingly inclined to go out more often, the demand for toys for building scale models and for hobbies continue increasing. Furthermore, series of new market entries in the trading card games market is driving the growth of boy’s characters & toys market.

Research Outline