Are you planning to launch a brand-new toy that you believe will be a massive hit. You’ve spent months perfecting its design, choosing the right colors, and packaging it to perfection.
But when it finally reaches stores, it doesn’t sell. Kids aren’t interested, and parents don’t see the value in buying it.
What went wrong?
This is exactly why market research is essential. It helps you understand your target audience, industry trends, and competition before investing time and money into product development. Whether you're launching a new toy line or expanding an existing brand, the right research ensures that your toys resonate with children while meeting parents' expectations.
At Consainsights, we have studied over 13,000 markets, including the global toy industry across various regions. Our research covers everything from consumer behavior to competitive analysis, helping brands make informed decisions before bringing a product to market.
If you're looking for comprehensive toy market reports or need a custom research study, our team can help you gain the insights you need.
Now, let’s dive into the step-by-step process of conducting market research for a toy brand.
Step 1: Define Your Market Research Goals
The first step in market research is setting clear objectives. Without a well-defined goal, you risk gathering too much irrelevant data or missing critical insights. Start by asking yourself key questions:
- Who is your ideal customer? Consider age groups, interests, and purchasing behaviors.
- What type of toys are you focusing on? Educational, tech-driven, classic, or collectibles?
- What challenges do parents face when buying toys? Safety concerns, pricing, durability, or engagement?
For example, if you're developing STEM-based educational toys, your focus should be on understanding parents’ willingness to invest in learning-oriented playthings. If your toy brand is more about fun and entertainment, analyzing pop culture trends and children's favorite characters becomes more relevant. Defining your research goals early ensures that your efforts remain structured and effective.
Check out our report on the Toys and Games Market at global level. We have covered market size, key trends and the forecast.
Step 2: Identify Your Target Audience
When marketing toys, there are two distinct groups you need to consider: children and buyers. While kids are the primary users, the actual purchasing decisions are often made by parents, grandparents, or gift-givers. Understanding both perspectives is key to positioning your brand effectively.
Children’s preferences vary based on age, interests, and trends. A toy that appeals to a toddler will differ significantly from one designed for an eight-year-old. Younger kids are drawn to colorful, interactive, and sensory-rich toys, while older children might prefer collectibles, board games, or tech-integrated products. Researching what excites kids within your target age group can give you valuable insights into product development.
At the same time, understanding parents’ concerns is equally important. Many parents prioritize:
- Safety: Are the materials non-toxic? Is the toy free of choking hazards?
- Educational value: Does the toy contribute to learning and development?
- Durability: Will it withstand rough play? Is it made of high-quality materials?
- Sustainability: Is the toy eco-friendly? Are the materials biodegradable or recyclable?
Surveys, interviews, and focus groups with parents can reveal what influences their purchasing decisions. If a specific concern, such as safety certifications, is a recurring theme, incorporating that into your marketing strategy can build trust with buyers.
Step 3: Analyze Market Trends
The toy industry is constantly evolving, with new trends shaping buying behavior each year. Educational toys and smart toys, for example, have gained popularity as parents look for ways to make learning fun. Sustainability is another growing concern, leading to an increase in demand for eco-friendly, biodegradable, or wooden toys.
Technology is also playing a bigger role in modern toys, with augmented reality (AR), virtual reality (VR), and AI-powered playthings entering the market. At the same time, nostalgia marketing has brought back classic toys from the past, with brands revamping older designs for a new generation of kids.
Staying updated on these trends can help you design toys that meet current market demands. Industry reports, trade shows, and publications such as Toy Insider and Kidscreen provide valuable insights into what’s trending and where the market is headed.
Actionable Tip: Use Google Trends to identify rising toy trends.
The above image shows the increasing trend for interactive toys among parents.
Here is how you can check it as well:
- Go to Google Trends (https://trends.google.com/)
- Enter keywords like "educational toys," "best-selling toys," or "interactive toys."
- Compare search volume over different time frames to spot trends.
This helps you align your toy brand with what’s gaining popularity in the market.
At Consainsights, we track emerging market trends to help brands anticipate shifts in consumer demand. Our research ensures that companies stay ahead of industry changes, from rising toy categories to evolving parent expectations.
Step 4: Research Your Competition
Understanding the competitive landscape allows you to position your toy brand effectively. Large companies like LEGO, Mattel, and Hasbro dominate the industry, but smaller brands focusing on niche markets also thrive. Studying both types of competitors can help you identify gaps and opportunities.
Examining top-selling toys on eCommerce platforms like Amazon, Walmart, and Target provides insights into what customers are buying.
For example, let us take a look at the Best Seller page for toys on Amazon:
This page showcases top 100 toys that are doing good in the market. You can browse through these toys, find why they are selling good, study their brands, and more.
Reading product reviews can also highlight common complaints, such as durability issues, lack of engagement, or safety concerns. If customers consistently mention a missing feature, you can use that insight to develop a better alternative.
Social media is another powerful tool for competitor analysis. Many toy brands actively engage with their audience on Instagram, TikTok, and YouTube, showcasing their products and interacting with customers. Observing how competitors present their brand, market their toys, and respond to customer feedback can help you refine your own strategy.
Step 5: Conduct Surveys and Playtesting
Gathering direct feedback from your target audience is crucial. Surveys are a great way to understand parents' buying behavior and preferences. Platforms like Google Forms, SurveyMonkey, and Typeform allow you to collect data on what types of toys parents prefer, how much they’re willing to spend, and what factors influence their decisions.
To conduct effective surveys:
- Use Google Forms to create a short survey.
- Include questions about toy safety, pricing, and brand preferences.
- Distribute the survey via social media, parent groups, or email lists.
However, since kids are the end users, playtesting is one of the most valuable research methods. Hosting small focus groups where children interact with prototypes allows you to observe their engagement levels, reactions, and whether they intuitively understand how to use the toy. Watching kids play in real-time can reveal insights that surveys alone might not capture.
Testing early ensures that your final product aligns with what children enjoy and what parents approve of. Adjustments based on real feedback can significantly improve your toy’s chances of success in the market.
Step 6: Test Pricing and Product Demand
Pricing plays a major role in a toy’s success. If it's too expensive, parents may hesitate to buy it. If it’s too cheap, they may question its quality. Striking the right balance requires research into customer expectations and competitor pricing.
Some of the most effective ways to test pricing include:
- A/B Testing: Launching ads or landing pages with different prices to see which gets more conversions.
- Pre-orders and Crowdfunding: Platforms like Kickstarter can validate demand and reveal what people are willing to pay.
- Competitive Analysis: Comparing prices of similar toys on marketplaces like Amazon and Walmart.
A toy with high-quality materials, interactive features, or educational benefits can justify a higher price tag. Understanding what parents and kids are willing to pay ensures that your product is both profitable and competitively positioned.
Conclusion: Get Expert Market Research for Your Toy Brand
Thorough market research ensures that your toy brand develops products that kids love and parents trust. By defining clear goals, understanding your audience, tracking industry trends, analyzing competitors, and gathering real feedback, you can create toys that stand out in a crowded market.
At Consainsights, we specialize in data-driven market research that helps brands make informed decisions. Whether you need a detailed toy market report or custom research tailored to your brand, our team is here to provide actionable insights. Reach out to us today and take the guesswork out of launching your next toy brand!