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Toy and Game Retailing in Australia - Market Research Report (2016-2031)

Claudia Burgio-Ficca Claudia Burgio-Ficca Melbourne, Australia Last Updated: January 2026 ANZSIC G4243

Revenue

$1.2bn

2026-27

$1.2bn

Past 5-Year Growth

Profit

$XX.Xm

Employees

6,430

Businesses

1,782

Wages

$XXX.Xm

Toy and Game Retailing in Australia industry analysis

Toy and game retailers have exhibited substantial highs and lows over the past few years, shaped by both external economic headwinds and evolving consumer preferences. After a remarkable sales surge during the early pandemic period, when families sought indoor entertainment for children, retailers have since grappled with more volatile trading conditions. While certain product segments like building sets, electronic toys and board games thrived during lockdowns, mounting inflation, rising interest rates and declining discretionary incomes in the post-pandemic environment have squeezed household budgets and dulled enthusiasm for non-essential shopping. As a result, retailers have responded with price discounts and revamped offerings to remain competitive in a rapidly changing environment. Overall, industry revenue is expected to slump at an annualised 1.2% over the five years through 2025-26 to reach $1.2 billion in the current year, when sales will slide 0.6%.

Trends and Insights

  • Toy and game sales have struggled after an early surge. Rising cost-of-living pressures and reduced consumer confidence have dampened spending, pushing shoppers to hunt for bargains and causing overall sales to slide.
  • Toy and game retailers sell traditional toys and games, electronic toys and games and hobby equipment and supplies. Advances in technology and the evolution of smart toys have led to a shift in toy sales.
  • Population distribution is the key driver influencing where toy and game retailers choose to locate. That’s why New South Wales, Victoria and Queensland account for the lion’s share of locations.
  • Fierce competition and shifts towards online shopping are making it tough for traditional toy and game retailers to grow. Department stores and online-only retailers offer wide product ranges and better pricing, drawing price-sensitive consumers away from specialty retailers.
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Industry Statistics and Trends

Market size and recent performance (2016-2031)

Industry revenue has declined at a CAGR of 1.2 % over the past five years, to reach an estimated $1.2bn in 2026.

Trends and Insights

Sales have tumbled from an early spike

  • Challenging trading conditions have surrounded the toy and game retail market. Retailers initially exhibited an early spike, with sales of building sets, games, puzzles, electronics and art and crafts surging during the pandemic as parents looked for ways to entertain housebound children. Yet, despite double digit growth in 2020-21, strong inflation and rising interest rates have hampered spending in the post-pandemic environment.
  • Additional trends and insights available with purchase
Toy and Game Retailing in Australia
Revenue (2016-2031)
IBISWorld Logo Source: IBISWorld

Industry outlook (2026-2031)

Market size is projected to grow over the next five years.

Trends and Insights

Trading conditions are set to improve

  • Trading conditions for toy and game retailers are projected to improve as economic circumstances strengthen, population growth accelerates and average weekly wages rise. These positive factors are expected to bolster consumer confidence, leading to renewed optimism about future spending. As sentiment recovers, increased demand and revenue for toys and games are likely to follow.

Biggest companies in the Toy and Game Retailing in Australia

Company
Market Share (%)
2026
Revenue ($m)
2026
Associated Retailers Limited
206.6
Kidstuff
34.1
Cen
64.0

To view the market share and analysis for all 4 top companies in this industry, view purchase options.

Products & Services Segmentation

Toy and Game Retailing in Australia
Products & Services
IBISWorld Logo Source: IBISWorld

Industry revenue is measured across several distinct product and services lines, including Traditional toys and games, Electronic toys and games and Hobby equipment and supplies. Traditional toys and games is the largest segment of the Toy and Game Retailing in Australia.

Trends and Insights

The tech-toy revolution has hindered traditional toy and game sales

  • Traditional toy and game products like dolls, trucks, puzzles and board games have long been the dominant product category for specialist toy and game retailers. However, the escalating popularity of electronic and interactive toys has led to a slump in traditional toy sales as a share of revenue.
  • More insights available in the full report

Table of Contents

About this industry

Industry definition

Toy and game retailers sell a range of products like dolls, hobby equipment and board games. Retailers operate as stand-alone stores, franchised businesses or as part of a chain store network. Products are purchased from domestic and international manufacturers and wholesalers before being sold to downstream markets.

What's included in this industry?

Products and services covered in the Toy and Game Retailing industry in Australia include Traditional toys and games, Electronic toys and games and Hobby equipment and supplies .

Companies

Companies covered in the Toy and Game Retailing industry in Australia include Associated Retailers Limited, Kidstuff and Cen.

Purchase this report to view all 4 major companies in this industry.

Related Terms

Related terms covered in the Toy and Game Retailing industry in Australia include tweens, interactive toys and stem toys.

Industry Code

ANZSIC 2006

ANZSIC 4243 - Toy and Game Retailing in Australia

Performance

Get an indication of the industry's health through historical, current and forward-looking trends in the performance indicators that make or break businesses.

Analyst insights

Toy and game sales have struggled after an early surge. Rising cost-of-living pressures and reduced consumer confidence have dampened spending, pushing shoppers to hunt for b...

In this chapter (4)

  • Current Performance
  • Outlook
  • Volatility
  • Life Cycle

Key metrics

  • Annual Revenue, Recent Growth, Forecast, Revenue Volatility
  • Number of Employees, Recent Growth, Forecast, Employees per Business, Revenue per Employee
  • Number of Businesses, Recent Growth, Forecast, Employees per Business, Revenue per Business
  • Total Profit, Profit Margin, Profit per Business

Charts

  • Revenue, including historical (2016-2025) and forecast (2026-2031)
  • Employees, including historical (2016-2025) and forecast (2026-2031)
  • Businesses, including historical (2016-2025) and forecast (2026-2031)
  • Profit, including historical (2016-2026)
  • Industry Volatility vs. Revenue Growth
  • Industry Life Cycle

Detailed analysis

  • Trends in supply, demand and current events that are driving current industry performance
  • Expected trends, economic factors and ongoing events that drive the industry's outlook
  • Key success factors for businesses to overcome volatility
  • How contribution to GDP, industry saturation, innovation, consolidation, and technology and systems influence the industry's life cycle phase.

Products and Markets

Learn about an industry's products and services, markets and trends in international trade.

Analyst insight

Toy and game retailers sell traditional toys and games, electronic toys and games and hobby equipment and supplies. Advances in technology and the evolution of smart toys hav...

In this chapter

  • Products & Services
  • Major Markets

Key metrics

  • Largest market segment and value in 2026
  • Product innovation level

Charts

  • Products & services segmentation in 2026
  • Major market segmentation in 2026

Detailed analysis

  • Trends impacting the recent performance of the industry's various segments
  • Innovations in the industry's product or service offering, specialization or delivery method
  • Key factors that successful businesses consider in their offerings
  • Buying segments and key trends influencing demand for industry products and services

Geographic Breakdown

Discover where business activity is most concentrated in an industry and the factors driving these trends to find opportunities and conduct regional benchmarking.

Analyst insights

Population distribution is the key driver influencing where toy and game retailers choose to locate. That’s why New South Wales, Victoria and Queensland account for the lion’...

In this chapter (1)

  • Business Locations

Charts

  • Share of revenue, establishment, wages and employment in each region
  • Share of population compared to establishments in each region in 2026

Tables

  • Number and share of establishments in each region in 2026
  • Number and share of revenue each region accounts for in 2026
  • Number and share of wages each region accounts for in 2026
  • Number and share of employees in each region in 2026

Detailed analysis

  • Geographic spread of the industry across Asia Pacific, and trends associated with changes in the business landscape
  • Key success factors for businesses to use location to their advantage

Competitive Forces

Get data and insights on what's driving competition in an industry and the challenges industry operators and new entrants may face, with analysis built around Porter's Five Forces framework.

Analyst insights

Fierce competition and shifts towards online shopping are making it tough for traditional toy and game retailers to grow. Department stores and online-only retailers offer wi...

In this chapter (4)

  • Concentration
  • Barriers to Entry
  • Substitutes
  • Buyer & Supplier Analysis

Key metrics

  • Industry concentration level
  • Industry competition level and trend
  • Barriers to entry level and trend
  • Substitutes level and trend
  • Buyer power level and trend
  • Supplier power level and trend

Charts

  • Market share concentration among the top 4 suppliers from 2021-2026
  • Supply chain including upstream supplying industries and downstream buying industries, flow chart

Detailed analysis

  • Factors impacting the industry’s level of concentration, such as business distribution, new entrants, or merger and acquisition activity.
  • Key success factors for businesses to manage the competitive environment of the industry.
  • Challenges that potential industry entrants face such as legal, start-up costs, differentiation, labor/capital intensity and capital expenses.
  • Key success factors for potential entrants to overcome barriers to entry.
  • Competitive threats from potential substitutes for the industry’s own products and services.
  • Key success factors for how successful businesses can compete with substitutes.
  • Advantages that buyers have to keep favorable purchasing conditions.
  • Advantages that suppliers have to maintain favorable selling conditions.
  • Key success factors for how businesses can navigate buyer and supplier power.

Companies

Learn about the performance of the top companies in the industry.

Analyst insights

Specialisation and convenience have helped Toyworld thrive amid tough competition. Focusing on a wide range of products and expanding its online presence has enabled Toyworld...

In this chapter

  • Market Share Concentration
  • Companies
  • Company Spotlights

Charts

  • Industry market share by company in 2022 through 2026
  • Major companies in the industry, including market share, revenue, profit and profit margin in 2026
  • Overview of Associated Retailers Limited's performance by revenue, market share and profit margin from 2020 through 2026
  • Overview of Kidstuff's performance by revenue, market share and profit margin from 2020 through 2026
  • Overview of Cen's performance by revenue, market share and profit margin from 2020 through 2026
  • Overview of revenue, market share and profit margin trend for one additional company

Detailed analysis

  • Description and key data for Associated Retailers Limited, and factors influencing its performance in the industry
  • Description and key data for Kidstuff, and factors influencing its performance in the industry
  • Description and key data for Cen, and factors influencing its performance in the industry
  • Description, key data and performance trends for one additional company

External Environment

Understand the demographic, economic and regulatory factors that shape how businesses in an industry perform.   

Analyst insights

Fluctuations in real household discretionary income drive demand for toys and games. Strong inflation and rising interest rates have increased debt repayments for consumers, ...

In this chapter

  • External Drivers
  • Regulation & Policy
  • Assistance

Key metrics

  • Regulation & policy level and trend
  • Assistance level and trend

Charts

  • Regulation & Policy historical data and forecast (2016-2031) 
  • Assistance historical data and forecast (2016-2031) 

Detailed analysis

  • Demographic and macroeconomic factors influencing the industry, including Regulation & Policy and Assistance
  • Major types of regulations, regulatory bodies, industry standards or specific regulations impacting requirements for industry operators
  • Key governmental and non-governmental groups or policies that may provide some relief for industry operators.

Financial Benchmarks

View average costs for industry operators and compare financial data against an industry's financial benchmarks over time. 

Analyst insights

Profits have fluctuated, but specialisation has helped toy and game retailers stay afloat. Greater focus on niche markets, like STEM and educational toys has helped maintain ...

In this chapter

  • Cost Structure
  • Financial Ratios
  • Key Ratios

Key metrics

  • Profit margin, and how it compares to the sector-wide margin
  • Average wages, and how it compares to the sector-wide average wage
  • Largest cost component as a percentage of revenue
  • Industry average ratios for days' receivables, industry coverage and debt-to-net-worth ratio

Charts

  • Average industry operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2026
  • Average sector operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2026
  • Investment vs. share of economy

Data tables

  • Cash Flow & Debt Service Ratios (2016-2031)
  • Revenue per Employee (2016-2031)
  • Revenue per Enterprise (2016-2031)
  • Employees per Establishment (2016-2031)
  • Employees per Enterprise (2016-2031)
  • Average Wage (2016-2031)
  • Wages/Revenue (2016-2031)
  • Establishments per Enterprise (2016-2031)
  • IVA/Revenue (2016-2031)
  • Imports/Demand (2016-2031)
  • Exports/Revenue (2016-2031)

Detailed analysis

  • Trends in the cost component for industry operators and their impact on industry costs and profitability 

Key Statistics

Industry Data

Data Tables

Including values and annual change:

  • Revenue (2016-2031)
  • IVA (2016-2031)
  • Establishments (2016-2031)
  • Enterprises (2016-2031)
  • Employment (2016-2031)
  • Exports (2016-2031)
  • Imports (2016-2031)
  • Wages (2016-2031)

Top Questions Answered

Unlock comprehensive answers and precise data upon purchase. View purchase options.

What is the market size of the Toy and Game Retailing industry in Australia in 2026?

The market size of the Toy and Game Retailing industry in Australia is $1.2bn in 2026.

How many businesses are there in the Toy and Game Retailing industry in Australia in 2026?

There are 1,782 businesses in the Toy and Game Retailing industry in Australia, which has grown at a CAGR of 2.4 % between 2021 and 2026.

How may import tariffs affect the Toy and Game Retailing industry in Australia?

The Toy and Game Retailing industry in Australia is unlikely to be materially impacted by import tariffs with imports accounting for a low share of industry revenue.

How may export tariffs affect the Toy and Game Retailing industry in Australia?

The Toy and Game Retailing industry in Australia is unlikely to be materially impacted by export tariffs with exports accounting for a low share of industry revenue.

Has the Toy and Game Retailing industry in Australia grown or declined over the past 5 years?

The market size of the Toy and Game Retailing industry in Australia has been declining at a CAGR of 1.2 % between 2021 and 2026.

What is the forecast growth of the Toy and Game Retailing industry in Australia over the next 5 years?

Over the next five years, the Toy and Game Retailing industry in Australia is expected to grow.

What are the biggest companies in the Toy and Game Retailing industry in Australia?

The biggest companies operating in the Toy and Game Retailing industry in Australia are Associated Retailers Limited, Kidstuff and Cen

What does the Toy and Game Retailing industry in Australia include?

Traditional toys and games and Electronic toys and games are part of the Toy and Game Retailing industry in Australia.

Which companies have the highest market share in the Toy and Game Retailing industry in Australia?

The company holding the most market share in the Toy and Game Retailing industry in Australia is Associated Retailers Limited.

How competitive is the Toy and Game Retailing industry in Australia?

The level of competition is moderate and increasing in the Toy and Game Retailing industry in Australia.

Methodology

How are IBISWorld reports created?

IBISWorld has been a leading provider of trusted industry research for over 50 years to the most successful companies worldwide. With offices in Australia, the United States, the United Kingdom, Germany and China, we are proud to have local teams of analysts that conduct research, data analysis and forecasting to produce data-driven industry reports.

Our analysts start with official, verified and publicly available sources of data to build the most accurate picture of each industry. Analysts then leverage their expertise and knowledge of the local markets to synthesize trends into digestible content for IBISWorld readers. Finally, each report is reviewed by one of IBISWorld’s editors, who provide quality assurance to ensure accuracy and readability.

IBISWorld relies on human-verified data and human-written analysis to compile each standard industry report. We do not use generative AI tools to write insights, although members can choose to leverage AI-based tools within the platform to generate additional analysis formats.

What data sources do IBISWorld analysts use?

Each industry report incorporates data and research from government databases, industry-specific sources, industry contacts, and our own proprietary database of statistics and analysis to provide balanced, independent and accurate insights.

Key data sources in Australia include:

  • Australian Bureau of Statistics
  • Australian Taxation Office
  • Australian Securities & Investments Commission

Analysts also use industry specific sources to complement catch-all sources, although their perspective may focus on a particular organization or representative body, rather than a clear overview of all industry operations. However, when balanced against other perspectives, industry-specific sources provide insights into industry trends.

These sources include:

  • Industry and trade associations
  • Industry federations or regulators
  • Major industry players annual or quarterly filings

Finally, IBISWorld’s global data scientists maintain a proprietary database of macroeconomic and demand drivers, which our analysts use to help inform industry data and trends. They also maintain a database of statistics and analysis on thousands of industries, which has been built over our more than 50-year history and offers comprehensive insights into long-term trends.

How does IBISWorld forecast its data?

IBISWorld’s analysts and data scientists use the sources above to create forecasts for our proprietary datasets and industry statistics. Depending on the dataset, they may use regression analysis, multivariate analysis, time-series analysis or exponential smoothing techniques to project future data for the industry or driver. Additionally, analysts will leverage their local knowledge of industry operating and regulatory conditions to impart their best judgment on the forecast model.

IBISWorld prides itself on being a trusted, independent source of data, with over 50 years of experience building and maintaining rich datasets and forecasting tools. We are proud to be the keystone source of industry information for thousands of companies across the world.

Learn more about our methodology and data sourcing on the Help Center.

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