Despite a slowdown in U.S. sales and rising competition from vertical segments such as video games, worldwide toy market sales topped $78 billion (U.S.) in 2008, a 0.8 percent decrease in current exchange rates over 2007. However, the real situation, at constant exchange rates, is that the world toy market has gained another 2.3 percent, or $2.4 billion (U.S.), according to Global Toy Trends and Forecasts 2009, the most recent report from leading market research company, The NPD Group.

At the current pace, NPD expects worldwide toy sales to top $80.3 billion in 2012.

Global Toy Trends and Forecasts 2009 provides a trend forecast of what The NPD Group expects the global toy industry to experience within the next few years, as well as insight into the impact of the global economic crisis and its effect on toy industry sales. It also identifies countries that are forecasted to experience growth in both the kid population, and toy sales.

According to the report, the top 10 countries represented 65 percent of 2008's global toys sales, with North America representing 30 percent of worldwide toy sales, followed by Europe at 29 percent, and Asia at 27 percent. The U.S. is the world’s top toy market, contributing $21.7 billion in sales. Next in line with the most toy revenue in 2008 are Japan and China.

"We continue to see growth in all the emerging markets," said Jane Zimmy, Global Senior Vice President Toys, The NPD Group. "Sales in Brazil, Russia, India, and China (BRIC) continue to outpace total market sales, making these nations increasingly important to the overall growth of the global toy market as well as to NPD’s expansion in the sector.”

In terms of population, the U.S. and Europe represent 9 percent of the total kids population, and 57 percent of the world’s toy consumption, a decrease of three points compared to 2007. The group of kids ages 0-4 is the demographic group expected to grow most in the next four years.

Asia and Africa are expected to strengthen their contributions to the world toy market in the next few years, with Asia likely to overtake the U.S. and Europe by the end of 2012. North America would then become the second largest market among global regions, contributing 28 percent of global sales, and Europe would represent 27 percent, which is a two percentage point loss compared to 2008.