Demographics and Income Shape Demand for Toys and Games
Euromonitor International’s Head of Toys and Games research, Utku Tansel, explains how demographics and income levels shape the demand for toys and games. Tansel states that the global population of children is decreasing, and is set to decrease from 26% to 25% by 2020. Asia Pacific and Middle East and Africa have the largest 0-14 year-old population, and as a result, spend per child is quite low in both regions. In many developed markets, there are less children, so spend per child is higher.
For a number of years, couples have been postponing having children. Usually, the higher the couple’s age is, the more money is spent on their child for traditional toys and games. This higher age of couples is usually due to higher education. Working parents tend to spend even more on children as a way to compensate for their absence. They have the option to spend more because they are employed. The following countries will have the greatest increase in working parents in the coming years:
Single parent households tend to be among the poorest, creating a need for cheaper products. The following countries will record the highest increase in single parents in the coming years:
Tansel concludes by saying that the toys and games industry is not recession-proof, but recession-resilient; if needed, people will cut spending on themselves before they cut spending on their children.