Games And Puzzles Market 2020 and Forecast 2021-2027

                                          
Report Overview: Games And Puzzles Market


The global games and puzzles market size was valued at USD 10.77 billion in 2020 and is projected to expand at a compound annual growth rate (CAGR) of 17.5% from 2021 to 2027. Increasing the adoption of 3D printing to design innovative board games is expected to contribute to industry growth significantly. Enhancement in manufacturing technologies has enabled game manufacturers to diversify their product offerings, thus offering new revenue streams. The development of improved visual memory and enhanced cognitive skills by participating in 3D puzzles are further boosting the adoption rate of educational puzzles amongst children.

Increasing demands of people to indulge in different social engagements are promoting them to adopt board and card games as new forms of entertainment. Several game designers have started modernizing existing games by adding innovative features to attract more millennials, thus driving increased adoption. For instance, manufacturers, including Royal Jumbo BV and Ravensburger AG, have added electronic accessories and platforms to their existing traditional puzzles. Additionally, the ability to develop real-life soft skills such as problem solving-skills, team-spirit, and critical thinking in millennials is further promoting people to adopt games and puzzle, thereby driving the market growth.

The advent of educational games and puzzles is expected to further contribute to growth. The general trend among parents to introduce their kids to educational board games to encourage the development of the child’s brainpower more creatively is anticipated to positively influence the product demand. Several educational intuitions, including VIBGYOR Group of Schools in India, have started adopting educational games to enhance their teaching methodologies and offer a more interactive learning experience for children. The fusion of detailed graphics, engaging music and high-quality effects in digital educational games help develop logical thinking and reasoning abilities.

Disruption in retailing practices has enabled corporations to maximize reach and achieve higher penetration rates. Puzzles and games manufacturers worldwide have started partnering with e-commerce firms for sales and distribution of puzzles, owing to the availability of additional channels to advertise their products and generate higher profit. These manufacturers have also started adopting online retailing practices, allowing buyers to buy products directly from their websites. This offers an official channel of sales for them and establishes effective customer relationships. For instance, popular manufacturers such as Mattel, Inc., and Hasbro, Inc. have started offering online memberships and direct-to-customer services, respectively.

Licensing Insights: Games And Puzzles Market

The non-licensed segment lead the games and puzzles market with a revenue share of 67.0% in 2019. This can be attributed to the availability of a wider variety of similar products or games at affordable prices. Non-licensed segment caters to customers of all economic classes to make better and more informed choices. Moreover, a more extensive array of non-licensed board games enables holistic development for children, further offering promising growth prospects.

Licensed games and puzzles captured significant revenue share in 2019. The provision to gain access to licensed products offers users a sense of brand quality and enables them to use high-quality products. Manufacturers are collaborating with media and entertainment houses to gain image right of their patented characters, to offer licensed products. Furthermore, the assurance of secure brand value and high-quality products attracts more customers as compared to non-licensed products.

Distribution Channel Insights: Games And Puzzles Market

The brick and mortar segment lead the market, with a revenue share of 60.50% in 2019. Consumers still prefer brick and mortar stores, where they can experience the product and interact with the sales associates in person before making any decision. They tend to relate customer satisfaction with personal interactions and prefer buying products on the spot rather than ordering products online. Additionally, these stores also offer customers a sense of security regarding product genuineness and quality.

Despite high revenue generation through brick and mortar stores, the e-commerce segment captured significant share in 2019. E-commerce platforms offer customers a plethora of options for a particular kind of game or puzzle, thus enabling customers to make a more informed and calculated decision. Furthermore, the rapid penetration of smartphones eases the customer buying journey as they can access and buy puzzles and games at any time. E-commerce platforms offer a more comfortable and convenient shopping experience, enabling the segment to capture significant market share.

Type Insights: Games And Puzzles Market

The games segment captured the largest revenue share of 60.42% in 2019. This high share is attributed to the growing acceptance of board games amongst people as a means to engage in fun activities in events such as house parties and corporate team-building exercises. Furthermore, game manufacturers have started developing games with new designs and themes that offer a more immersive experience to users as compared to the previous versions of the game. Manufacturers have also started developing specially curated board games for the older population, such as Hive and Big Letter Bananagrams.

The puzzles segment captured significant revenue share in 2019. The growing trend of educational puzzles among kids and teenagers is further promoting the segment growth. There has been a significant shift in trend in the shape of puzzles as compared to those from yesteryears. Manufacturers are constantly looking for newer patterns and cuts to offer better designs and higher aesthetic charm to their puzzles, thus driving higher adoption rates. Additionally, jigsaw puzzle manufacturers, including Springbok in U.S., offer customers a chance to develop their customized puzzles, which attracts customers to leverage the platform and thus provide an impetus for the market growth.

Regional Insights: Games And Puzzles Market

Asia Pacific lead the market and accounted for 45.24% share of global revenue in 2019. The rapid advancement of 3D printing technology in China offers new growth prospects to the regional market. The region has further witnessed a steady increase in the adoption of board game cafes as a concept in China and India, owing to an emerging need amongst people to engage in more meaningful interactions and activities. For instance, Empire Penguin in Soho Shangdu, China, and ReRoll Board Games in Bangalore, India, are some of the board game cafes which offer people the opportunity to book timeslots at affordable prices and enable people to indulge in pleasant experiences.

North America contributed to market growth significantly. Several puzzle retailers in U.S. have started offering puzzles of different themes, such as sports, wildlife, culture, religion, and festival, driving adoption amongst kids and teenagers. The emergence of crowdfunding platforms in the U.S. enables puzzle creators to put out their content, which can be bought by suitors, thus offering a new revenue channel for freelancing puzzle developers. Furthermore, the Consumer Product Safety Commission (CPSC) in U.S. regulates the import and export of games in the country and has laid down strict guidelines that determine product safety for children. This factor is anticipated to reflect on the market growth in the forthcoming years.
Impact of COVID-19

The ongoing pandemic, COVID-19, has resulted in the rapid adoption of the board and card games. This can be attributed to lockdowns implemented in several countries and subsequent need among people to engage in entertainment and leisure activities. The confinement of people in their homes due to the emerging trend of social distancing and the need to spend quality family time is promoting the wide-scale adoption of board games and puzzles amongst people around the world. Ludo, carom, monopoly, and snakes & ladders are some of the popular board games that have witnessed a sharp increase in adoption.

Organizations worldwide are also using this opportunity to develop new games for people, thus trying to penetrate the market more effectively. For instance, Libera Università Maria Ss. Assunta (LUMSA) in Rome, has developed a new board game highlighting the importance of social distancing and aims to generate awareness of the highly contagious disease. Furthermore, established organizations have also started diversifying their product and service offerings to capture a larger revenue share. Costco Online U.K. has started developing 4D puzzles, and Hasbro Inc. has begun offering subscription services.

Key Companies & Market Share Insights: Games And Puzzles Market

The industry has witnessed a rise in merger and acquisition activities globally as game providers are increasingly looking to tap into new revenue streams, and better penetrate the market. Manufacturers have also started partnering with media and entertainment houses to offer unique themes and diversify their product offerings. Several manufacturers in U.S. are redefining their retail strategies and are entering the e-commerce space to remain competitive. Besides, their focus on multiple distribution channels is turning out to be more successful in terms of geographical reach and hence the sale of their products.

Apart from a business point of view, companies are also undergoing strategic developments that offer more value to society and the environment. For instance, in April 2019, Hasbro, Inc. announced that it would steadily eliminate the use of plastic for product packaging requirements. Furthermore, game manufacturers and providers have started collaborating with different NGOs to donate a part of their profit towards the betterment of less fortunate people. For instance, in April 2018, Educa Borras S.A.U. launched a project with SOS Children’s Village to help needy children and families who are in a vulnerable position. Some prominent players in the games and puzzles market include:

Key companies profiled

 	
Buffalo Games
 	
 Hasbro, Inc.
 	
Mattel, Inc.
 	
Ravensburger AG
 	
Ceaco, Inc.

This report forecasts revenue growths at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2016 to 2027. For the purpose of this study, Trusted Business Insights has segmented the global games and puzzles market report based on licensing, distribution channel, type, and region:

Licensing Outlook (Revenue, USD Billion, 2016 - 2027)

 	
Licensed
 	
Non-licensed

Distribution Channel Outlook (Revenue, USD Billion, 2016 - 2027)

 	
E-commerce
 	
Brick & Mortar

Type Outlook (Revenue, USD Billion, 2016 - 2027)

 	
Games
 	
Puzzles