UAE Toys and Games Market Outlook to 2029

The report titled “UAE Toys and Games Market Outlook to 2029 - By Branded and Local Players, By Product Type (Educational Toys, Electronic Toys, Action Figures, Dolls, Games and Puzzles, Ride-Ons), By Age Group, By Distribution Channel, and By Emirates” provides a comprehensive analysis of the toys and games market in the UAE. The report covers an overview and genesis of the industry, overall market size in terms of revenue, market segmentation; trends and developments, regulatory landscape, customer level profiling, issues and challenges, and comparative landscape including competition scenario, cross comparison, opportunities and bottlenecks, and company profiling of major players in the toys and games market. The report concludes with future market projections based on sales revenue, by market, product types, region, cause and effect relationship, and success case studies highlighting the major opportunities and cautions.

UAE Toys and Games Market Overview and Size

The UAE toys and games market reached a valuation of AED 1.8 billion in 2023, driven by increasing disposable incomes, rising awareness about the benefits of educational toys, and the growing popularity of licensed toys based on popular media franchises. The market is characterized by major players such as Toys R Us, Hamleys, Early Learning Centre, and Al-Futtaim Toys. These companies are recognized for their extensive product portfolios, strong brand presence, and focus on innovative toys and games to cater to a diverse customer base.

In 2023, Hamleys launched a new range of eco-friendly toys to cater to the growing demand for sustainable products. This initiative aims to tap into the environmentally conscious consumer segment in the UAE and promote a more sustainable approach to toy production and consumption. Dubai and Abu Dhabi are key markets due to their high population density and robust retail infrastructure.

Market Size for UAE Toys and Games Industry on the Basis of Revenue in USD Billion, 2018-2024

Source: TraceData Research Analysis

What Factors are Leading to the Growth of UAE Toys and Games Market:

• Economic Factors: The UAE's strong economic performance and high per capita income levels have increased the purchasing power of families, contributing to higher expenditure on toys and games. The market also benefits from a significant expatriate population, which has brought diverse consumer preferences, boosting the demand for various toy categories.

• Increased Awareness of Educational Benefits: With rising awareness about the educational benefits of toys, parents are increasingly opting for educational and STEM (Science, Technology, Engineering, and Mathematics) toys. These toys accounted for approximately 35% of total toy sales in 2023, reflecting a growing trend towards educational tools that enhance cognitive development in children.

• Popularity of Licensed Products: The demand for licensed toys based on popular franchises such as Marvel, Disney, and Star Wars remains high in the UAE. Licensed toys represented around 40% of the total market revenue in 2023. These toys are particularly popular during major movie releases and holiday seasons, driving seasonal spikes in sales.

Which Industry Challenges Have Impacted the Growth for UAE Toys and Games Market

• High Price Sensitivity: The high price sensitivity of consumers, especially in the lower-income segments, poses a significant challenge. Approximately 30% of consumers in the UAE expressed concerns about the high prices of branded toys, often opting for lower-cost alternatives. This price sensitivity can limit the growth potential for premium toy brands in the market.

• Stringent Safety Regulations: UAE regulations mandate strict compliance with safety standards for toys and games, impacting the availability of certain products. In 2023, around 15% of imported toys were rejected due to non-compliance with safety standards. These regulations, while ensuring product safety, can impose additional costs on manufacturers and limit product variety in the market.

• Limited Local Production: The UAE toys and games market relies heavily on imports, with around 85% of toys being imported from countries like China, the US, and Germany. This dependency on imports exposes the market to supply chain disruptions and fluctuations in exchange rates, making it difficult to ensure consistent pricing and product availability.

What are the Regulations and Initiatives Which Have Governed the UAE Toys and Games Market:

• Toy Safety Standards: The UAE government, through the Emirates Authority for Standardization and Metrology (ESMA), mandates stringent safety standards for toys to ensure child safety and compliance with international norms. Toys must meet the GCC Technical Regulation for Children’s Toys, which focuses on aspects such as mechanical properties, flammability, chemical composition, and hygiene. In 2023, approximately 82% of toys in the market complied with these standards during the first inspection, indicating a high level of regulatory compliance among imported and locally produced toys.

• Import Regulations on Toys and Games: The UAE has strict import regulations that require all imported toys to pass conformity assessment procedures to ensure they meet the required safety and quality standards. This includes testing for hazardous chemicals and ensuring that toys are appropriately labeled in both English and Arabic. In 2023, imports of toys decreased by 5% due to increased scrutiny and the enforcement of these regulations, which aim to prevent the distribution of substandard products.

• Government Support for Local Manufacturers: To reduce dependency on imported toys, the UAE government has introduced initiatives to support local manufacturers. These initiatives include reduced licensing fees, subsidies for raw material procurement, and tax exemptions for manufacturers meeting sustainability and safety standards. As a result, local production of toys grew by 12% in 2023, contributing to a more balanced market and greater availability of locally produced toys.

UAE Toys and Games Market Segmentation

• By Market Structure: Organized retail channels, including large toy stores and specialized toy chains, dominate the UAE toys and games market due to their broad product range, strong brand presence, and established trust with consumers. These stores often provide a superior shopping experience through well-designed retail spaces and knowledgeable staff. Online retailers have also gained significant traction, driven by the convenience of online shopping and the increasing penetration of e-commerce platforms. Independent toy stores and unorganized retail sectors hold a smaller share of the market but remain relevant in local communities due to personalized service and niche product offerings.

• By Product Type: Educational toys lead the market, driven by a growing preference for toys that support learning and development. This segment includes STEM toys, which have gained popularity as parents increasingly value products that enhance children's cognitive skills. Action figures and dolls are the next largest segments, supported by strong demand for licensed products based on popular entertainment franchises. Outdoor games, puzzles, and electronic toys also contribute significantly to the market, catering to different consumer preferences across various age groups.

• By Age Group: The 3-5 years age group dominates the market, as this is the primary segment for early learning and developmental toys. Toys aimed at children aged 6-12 years are also highly popular, especially those that involve creative play and problem-solving activities. The 0-2 years age group accounts for a smaller share, focusing primarily on soft toys and basic developmental toys, while toys for teenagers (13 years and above) are typically in the electronic and gaming categories.

Competitive Landscape in UAE Toys and Games Market

The UAE toys and games market is moderately fragmented, with several major players holding a strong presence in the market. The dominance of established players such as Toys R Us, Hamleys, and Al-Futtaim Toys is supported by their extensive retail networks, strategic locations in malls, and a broad product range. The emergence of e-commerce platforms like Mumzworld and Sprii, along with niche specialty stores, has diversified the market, offering consumers more choices and services.

Some of the recent competitor trends and key information about competitors include:

• Toys R Us: As one of the leading toy retailers in the UAE, Toys R Us operates multiple stores across key cities, including Dubai, Abu Dhabi, and Sharjah. In 2023, the company introduced a new digital platform aimed at integrating online and offline shopping experiences, leading to a 15% increase in overall sales. The platform offers an improved customer interface, live product demos, and same-day delivery options.

• Hamleys: Known for its iconic brand and unique in-store experience, Hamleys has established itself as a go-to destination for premium toys and games. In 2023, Hamleys launched a new collection of eco-friendly toys, responding to the growing consumer demand for sustainable products. This initiative helped the company achieve a 12% increase in sales, particularly in the educational and soft toys segments.

• Early Learning Centre (ELC): Specializing in educational and developmental toys, ELC reported a 20% increase in sales of STEM toys in 2023. The brand's focus on promoting learning through play has resonated with parents in the UAE, who value toys that support their children's development. ELC's partnerships with schools and nurseries have further enhanced its market presence.

• Al-Futtaim Toys: A key player in the UAE toys and games market, Al-Futtaim Toys offers a diverse range of toys from various international brands. In 2023, the company expanded its e-commerce capabilities and introduced a click-and-collect service across its stores, resulting in a 25% increase in online sales. The company’s strategic focus on integrating online and offline sales channels has helped it stay competitive in the market.

• Mumzworld: As the largest online marketplace for mother, baby, and child products in the Middle East, Mumzworld recorded a 30% increase in toy sales in 2023. The platform's extensive product range, competitive pricing, and focus on customer service have made it a popular choice for parents seeking convenience and variety.

• Sprii: Specializing in toys, games, and child-related products, Sprii saw a 15% growth in sales in 2023, driven by its emphasis on offering niche and high-quality products. The platform’s focus on premium toy brands and a strong social media presence has attracted a loyal customer base looking for unique and specialized products.

What Lies Ahead for UAE Toys and Games Market?

The UAE toys and games market is projected to experience steady growth through 2029, driven by rising disposable incomes, an expanding e-commerce landscape, and an increasing focus on educational and sustainable toys. This positive outlook is further supported by the growing popularity of licensed products, the introduction of new technologies in toys, and government initiatives promoting digital transformation.

• Rising Demand for Educational and STEM Toys: As parents in the UAE become more aware of the benefits of educational toys, there is expected to be a continued shift towards STEM (Science, Technology, Engineering, and Mathematics) toys. These products, which enhance cognitive development and problem-solving skills, are forecasted to gain further traction. In 2023, educational toys accounted for approximately 35% of total toy sales, and this share is expected to grow as schools and nurseries incorporate STEM-based learning tools.

• Increased Integration of Technology: The use of technology in toys, such as AI-powered educational robots, interactive learning apps, and augmented reality (AR) games, is set to reshape the UAE toys and games market. These innovations will make toys more engaging and appealing, particularly for tech-savvy children and parents. As a result, the market is expected to see a surge in demand for smart and tech-enabled toys, driving revenue growth in this segment.

• Growth of Licensed and Branded Products: Licensed toys based on popular franchises such as Marvel, Disney, and Star Wars are expected to continue dominating the market, driven by ongoing movie releases, new streaming content, and extensive marketing campaigns. Licensed products are particularly popular among collectors and fans, contributing significantly to overall market revenue. This trend is expected to accelerate during major movie launches and festive seasons, with companies focusing on expanding their licensed product lines.

• Expansion of E-commerce Channels: The growing adoption of e-commerce platforms for toy purchases, supported by the UAE’s high internet penetration rate, is anticipated to fuel market growth. Online retailers such In 2023, e-commerce accounted for approximately 35% of total toy sales, and this share is expected to increase further as more consumers shift towards online shopping for its convenience and broader product availability.

Future Outlook and Projections for UAE Toys and Games Market on the Basis of Revenue, 2024-2029

Source: TraceData Research Analysis

UAE Toys and Games Market Segmentation

• By Market Structure:

  • Organized Retail Chains

  • Online Retailers

  • Independent Toy Stores

  • Unorganized Sector

• By Product Type:

  • Educational Toys

  • Action Figures

  • Dolls

  • Outdoor Games

  • Puzzles and Board Games

  • Electronic Toys

• By Age Group:

  • 0-2 years

  • 3-5 years

  • 6-12 years

  • 13 years and above

• By Distribution Channel:

  • Specialty Stores

  • Online Channels

  • Hypermarkets/Supermarkets

• By Region:

  • Dubai

  • Abu Dhabi

  • Sharjah

  • Northern Emirates

Players Mentioned in the Report:

• Toys "R" Us

• Hamleys

• The Toy Store

• Early Learning Centre (ELC)

• Babyshop

• LEGO Group

• Sony Corp

• Mattel Inc.

• Carrefour

• Lulu Hypermarket

• Majid Al Futtaim Group

Key Target Audience:

• Toy Manufacturers

• Online Retailers

• Toy Distributors

• Regulatory Bodies (e.g., Emirates Authority for Standardization and Metrology)

• Research and Development Institutions

Time Period:

• Historical Period: 2018-2023

• Base Year: 2024

• Forecast Period: 2024-2029