H1 2024 Report: China's Toy Industry Market Insights

Key Finding 1

China's toy industry reached CN¥ 31.89B in online sales across mainstream e-commerce platforms in H1 2024, with unit volumes surging +28.1% YoY while average selling prices declined notably -- a clear volume-for-price dynamic that is reshaping competitive dynamics across the sector.

Over the past two years, consumer parenting attitudes have shifted meaningfully, with willingness to spend on children's toys strengthening. Crucially, the toy consumer demographic has expanded from children and teenagers to all age groups, a trend driven by adult collectors, hobbyists, and the emotional-value economy. Tmall (天猫) + Taobao (淘宝) maintained dominant online share as the primary purchasing channel, while JD.com (京东) commanded higher average selling prices. Douyin (抖音) showed the most significant share growth among platforms, reflecting the broader trend of short-video-driven commerce in China's toy market. The overall ASP decline signals increasing price competition, but the substantial volume uplift suggests the market is successfully recruiting new consumers at lower price points.

Key Finding 2

Building blocks remained the largest toy sub-category at nearly CN¥ 4.0B in H1 2024 sales, but declined -10% YoY. In contrast, plush toys grew +3.4%, pretend play and DIY crafts showed significant YoY increases, and healing/cute IPs such as Chiikawa drove explosive cross-category growth.

The category mix tells a story of market maturation in building blocks versus emerging momentum in emotional and creative categories. Building blocks, despite their broad audience appeal spanning educational, entertainment, and social attributes, could not escape the macro headwind of declining consumer purchase intent. LEGO (乐高) continued to dominate with nearly 40% market share but saw -13.21% YoY decline. Meanwhile, the plush toy segment reached CN¥ 2.3B, with Jellycat achieving +126% YoY growth to capture 13.86% market share on the back of premium pricing and aspirational design. The IP landscape is being reshaped by Japanese and Korean healing/cute characters that appeal across age groups, and brands partnering with these IPs are seeing outsized growth -- MINISO (名创优品) grew +78% in plush through 100+ IP collaborations.

Key Finding 3

Both the plush toy and building blocks markets are showing pronounced price polarisation -- low-end products (below CN¥ 30-50) and premium products (above CN¥ 300-500) are gaining share, while mid-range segments face growing competitive pressure.

This polarisation reflects two distinct consumer strategies coexisting in the market. At the value end, brands like MINISO (名创优品) and Guaibudian (乖不点) each command over 50% of their sales from the lowest price tier, successfully attracting price-sensitive consumers who seek emotional value without premium commitment. At the premium end, Jellycat's CN¥ 150-300 sweet spot and Chongker's 64.89% concentration in the CN¥ 300-400 range demonstrate that consumers are willing to pay significantly more for differentiated quality, design, and brand positioning. For toy brands and manufacturers including Lingdong Creative (灵动创想), this polarisation suggests a clear strategic imperative: compete on distinctive value propositions rather than mid-market pricing, whether through IP partnerships, quality differentiation, or premium positioning.