China's Toy Market Hits CN¥ 31.89B as Volume-for-Price Reshapes the Landscape

Executive Summary#

China's online toy industry reached CN¥ 31.89 billion in sales across mainstream e-commerce platforms in H1 2024, with unit volumes up 28.1% YoY as average selling prices declined across all channels. We believe the market is being reshaped by a volume-for-price dynamic that is expanding the consumer base. Two other forces are at work: the rise of IP-driven products with emotional value that appeal across age groups, and a pronounced price polarisation that is squeezing the mid-range. This analysis examines the market structure, category dynamics, brand strategies and IP trends behind China's toy market.

Get the Full Report: H1 2024 Report: China's Toy Industry Market Insights for detailed data, methodology, and brand-level insights.

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Market Performance and Channel Dynamics#

China's toy market delivered CN¥ 31.89 billion in online sales in H1 2024, a result driven mainly by the expansion of unit volume (up 28.1% YoY) more than by growth in value. In this volume-for-price dynamic, brands accept lower average selling prices in order to recruit new consumers, and we believe it is the defining characteristic of the market cycle in H1 2024.

Established marketplaces remain the main purchasing channel for toys, while short-video content and livestream commerce on content-led channels have lowered the barriers to discovering toy products and brought them in front of new buyers.

The decline in average selling prices is uneven across categories and price tiers. While the overall trend puts pressure on margins, it is expanding the total addressable market by making toys more accessible to price-sensitive consumers and first-time purchasers.

Category Distribution: Building Blocks Remain the Largest Category#

Building blocks is the largest category at nearly CN¥ 4.0B, while sales fell 10% YoY

*Source: Moojing Market Intelligence*

Building blocks remained the largest sub-category at nearly CN¥ 4.0 billion, although its sales fell 10% YoY. The category's broad appeal across educational, entertainment and social uses was not enough to offset weaker purchase intent among consumers who are cautious about discretionary spending.

Growth came from other categories. Plush toys grew 3.4% YoY to CN¥ 2.3 billion, driven almost entirely by IP-powered premium products. Pretend play, DIY crafts and learning and drawing toys showed significant YoY increases, which reflects a shift in consumer preference toward creative and emotionally engaging toys that serve both children and adults.

Brand Strategies#

Brands are responding to the volume-for-price market in different ways. Jellycat has built its range on premium design and emotional-value positioning that attracts adult consumers, while emerging brands such as Qiaolexiong (巧乐熊) and Beiqitong (贝琦童) have entered the market at accessible price points, which adds to the volume-for-price dynamic.

IP Analysis: Healing and Cute Characters Drive Cross-Age Appeal#

The IP market is undergoing a structural shift. Classic cartoon IPs continue to account for a large part of sales, while consumer demand has moved toward Japanese and Korean healing and cute-style IPs such as Chiikawa, Loopy and Line Friends.

These IPs are breaking traditional age barriers in the toy market. Toys were historically bought mainly for children, but healing and cute IPs appeal to young working professionals who look for emotional comfort in collectible items. We believe this widening of the consumer base is a key structural driver of growth for the industry.

In plush toys, characters such as Chiikawa, Hatsune Miku, Hello Kitty and Sumikko Gurashi are popular with consumers. MINISO (名创优品) has built on this demand through more than 100 IP collaborations at affordable price points, which shows how IP combined with accessible pricing can draw in buyers.

IP lifecycles also require continuous renewal, since demand for characters that were once popular can fade when the market becomes saturated and product innovation does not keep pace.

Price Polarisation: A Strategic Imperative#

Both the plush toy and building blocks markets show pronounced price polarisation. In plush toys, the CN¥ 0-30 segment grew from 13.29% to 16.94% of sales, while the CN¥ 500+ premium segment also expanded. In building blocks, products below CN¥ 200 and above CN¥ 1,000 both gained share at the expense of the mid-range.

This polarisation creates two distinct strategic paths:

• Value positioning: MINISO (名创优品) and Guaibudian (乖不点) focus their ranges on low price tiers, which attracts price-sensitive consumers who want emotional value without a premium price.

• Premium positioning: Jellycat's range centres on CN¥ 150-300 and Chongker's on CN¥ 300-400, which shows that consumers are willing to pay for differentiated quality and design.

For brands in the squeezed mid-range, we believe the data points to defining a distinctive value proposition and committing to a price tier, since undifferentiated mid-market pricing leaves them exposed on both sides.

What This Means for Brands#

China's H1 2024 toy market data points to several practical conclusions for brands and manufacturers:

• IP partnerships were essential in H1 2024. The fastest-growing brands in the market had strong IP portfolios that reach across age groups. We believe the healing and cute trend reflects a structural expansion of the toy consumer base that will outlast a passing fashion.

• Channel strategy matters. In H1 2024 content-driven discovery through short videos and livestreams sat alongside traditional search-based purchasing on established marketplaces, so brands need a plan for both.

• Quality is the differentiator. In building blocks, where consumer reviews show that 46% of negative feedback relates to quality issues, brands that deliver better assembly feel and precision are well placed to earn lasting loyalty in a homogeneous market.

Related Articles#

Explore our deep-dive analyses from this report:

• Plush Toys Embrace Premium Positioning in China