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Online Toy Sales in Australia - Market Research Report (2015-2030)

Claudia Burgio-Ficca Claudia Burgio-Ficca Melbourne, Australia Last Updated: July 2025 ANZSIC OD4169

Revenue

$513.4m

2025-26

$513.4m

Past 5-Year Growth

Profit

$XX.Xm

Employees

1,560

Businesses

917

Wages

$XXX.Xm

Online Toy Sales in Australia industry analysis

Australia's online toy sales market has been on a rollercoaster ride in recent years, mirroring the ups and downs of the broader retail sector. As discretionary purchases, demand for toys and games tends to fluctuate based on income levels and consumer confidence, both of which have faced significant volatility. The onset of the COVID-19 pandemic acted as a turning point, with stay-at-home orders and government stimulus payments driving a surge in online shopping for entertainment products like Lego, puzzles and outdoor toys. However, this boom was short-lived. Rising interest rates and inflation soon sparked a sharp cost-of-living crisis, eating into household budgets and driving down consumer sentiment, ultimately dampening online toy sales. Industry's revenue has grown at an annualised rate of 1.0% over the past five years to reach $513.4 million in 2025-26, with a 2.6% climb in revenue in the current year.

Trends and Insights

  • The online toy retail market has experienced sharp volatility as demand tracked shifts in income and consumer sentiment. Following an early boom and a post-pandemic slump, revenues have recently rebounded thanks to rising discretionary income and improving economic confidence.
  • Demand for traditional toys has been mixed, with shifts in consumer preferences towards electronic and interactive toys cutting into market share. However, traditional toys that incorporate STEM learning continue to attract parents focused on educational value.
  • Population density and urbanisation drive online toy sales in New South Wales, Victoria and Queensland. Developed ecommerce infrastructure and a large customer base in these states enables retailers to efficiently fulfil a greater number of orders.
  • The market is fiercely competitive, with both omnichannel giants and pure online retailers vying for market share. Customers benefit from ample choice and bargaining power, while suppliers hold influence over product range and pricing.
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Industry Statistics and Trends

Market size and recent performance (2015-2030)

Industry revenue has grown at a CAGR of 1.0 % over the past five years, to reach an estimated $513.4m in 2025.

Trends and Insights

Retail trading conditions have been volatile

  • Toys and games are discretionary goods, meaning demand is largely linked to income trends and consumer sentiment. Discretionary income rose early on owing to the introduction of government support payments in response to the pandemic. With consumer sentiment rebounding, trading restrictions and stay-at-home directives ignited demand for online shopping, as consumers looked for new toy and game products to entertain children. Popular products at this time included Lego, puzzles, games and outdoor-related items.
  • Additional trends and insights available with purchase
Online Toy Sales in Australia
Revenue (2015-2030)
IBISWorld Logo Source: IBISWorld

Industry outlook (2025-2030)

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

Trends and Insights

Improving conditions will motivate spending

  • According to the Australia Post eCommerce Report 2025, 20% of households shopped online in 2024, up from just 5% in 2018. The projected upwards trend in online shopping is set to benefit online toy retailers, with revenue climbing 3.6% over 2026-27 and maintaining steady growth through to 2031-32.

Biggest companies in the Online Toy Sales in Australia

Company
Market Share (%)
2026
Revenue ($m)
2026
Amazon Australia
150.0
Wesfarmers
59.9
Associated Retailers
34.3

To view the market share and analysis for all 5 top companies in this industry, view purchase options.

Products & Services Segmentation

Online Toy Sales 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 craft supplies. Traditional toys and games is the largest segment of the Online Toy Sales in Australia.

Trends and Insights

Demand for traditional toys has exhibited mixed results

  • Traditional toys and games like dolls, cars and trucks, building sets, action figures, puzzles and board games have long been a staple product line for toy retailers. Demand for traditional toys has been challenged by technological advances and shifting consumer preferences towards electronic and interactive toys. This has led to a dip in segment sales as a revenue share.
  • More insights available in the full report

Table of Contents

About this industry

Industry definition

Industry players sell toy and hobby goods online. Products include traditional dolls and toys, electronic toys, board games, hobby kits and craft supplies. Goods are purchased from upstream manufacturers and wholesalers before being sold to downstream consumer markets. Industry operators include online-only retailers and bricks-and-mortar stores with an online presence.

What's included in this industry?

Products and services covered in the Online Toy Sales industry in Australia include Traditional toys and games, Electronic toys and games, Hobby equipment and craft supplies and STEM, educational and collectible toys.

Companies

Companies covered in the Online Toy Sales industry in Australia include Amazon Australia, Wesfarmers and Associated Retailers.

Purchase this report to view all 5 major companies in this industry.

Related Terms

Related terms covered in the Online Toy Sales industry in Australia include online retailer, bricks-and-mortar store and smartphone.

Industry Code

ANZSIC 2006

ANZSIC 4243 - Online Toy Sales 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

The online toy retail market has experienced sharp volatility as demand tracked shifts in income and consumer sentiment. Following an early boom and a post-pandemic slump, re...

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 (2015-2024) and forecast (2025-2030)
  • Employees, including historical (2015-2024) and forecast (2025-2030)
  • Businesses, including historical (2015-2024) and forecast (2025-2030)
  • Profit, including historical (2015-2025)
  • 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

Demand for traditional toys has been mixed, with shifts in consumer preferences towards electronic and interactive toys cutting into market share. However, traditional toys t...

In this chapter

  • Products & Services
  • Major Markets

Key metrics

  • Largest market segment and value in 2025
  • Product innovation level

Charts

  • Products & services segmentation in 2025
  • Major market segmentation in 2025

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 density and urbanisation drive online toy sales in New South Wales, Victoria and Queensland. Developed ecommerce infrastructure and a large customer base in these ...

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 2025

Tables

  • Number and share of establishments in each region in 2025
  • Number and share of revenue each region accounts for in 2025
  • Number and share of wages each region accounts for in 2025
  • Number and share of employees in each region in 2025

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

The market is fiercely competitive, with both omnichannel giants and pure online retailers vying for market share. Customers benefit from ample choice and bargaining power, w...

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 2020-2025
  • 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

Coming off a low base, the combined market share for the top four online toy retailers has escalated. Shifts in consumer shopping habits towards online shopping and greater i...

In this chapter

  • Market Share Concentration
  • Companies
  • Company Spotlights

Charts

  • Industry market share by company in 2021 through 2025
  • Major companies in the industry, including market share, revenue, profit and profit margin in 2025
  • Overview of Amazon Australia's performance by revenue, market share and profit margin from 2019 through 2025
  • Overview of Wesfarmers's performance by revenue, market share and profit margin from 2019 through 2025
  • Overview of Associated Retailers's performance by revenue, market share and profit margin from 2019 through 2025
  • Overview of revenue, market share and profit margin trend for 2 additional companies

Detailed analysis

  • Description and key data for Amazon Australia, and factors influencing its performance in the industry
  • Description and key data for Wesfarmers, and factors influencing its performance in the industry
  • Description and key data for Associated Retailers, and factors influencing its performance in the industry
  • Description, key data and performance trends for 2 additional companies

External Environment

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

Analyst insights

Growth in internet subscriber numbers expands access to online shopping, offering a direct opportunity for online toy retailers. As more Australians gain reliable internet ac...

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 (2015-2030) 
  • Assistance historical data and forecast (2015-2030) 

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

Profit margins for online toy retailers have declined from early highs as increased competition and cost-of-living pressures have squeezed sales and limited price flexibility....

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 2025
  • Average sector operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2025
  • Investment vs. share of economy

Data tables

  • Cash Flow & Debt Service Ratios (2015-2030)
  • Revenue per Employee (2015-2030)
  • Revenue per Enterprise (2015-2030)
  • Employees per Establishment (2015-2030)
  • Employees per Enterprise (2015-2030)
  • Average Wage (2015-2030)
  • Wages/Revenue (2015-2030)
  • Establishments per Enterprise (2015-2030)
  • IVA/Revenue (2015-2030)
  • Imports/Demand (2015-2030)
  • Exports/Revenue (2015-2030)

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 (2015-2030)
  • IVA (2015-2030)
  • Establishments (2015-2030)
  • Enterprises (2015-2030)
  • Employment (2015-2030)
  • Exports (2015-2030)
  • Imports (2015-2030)
  • Wages (2015-2030)

Top Questions Answered

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

What is the market size of the Online Toy Sales industry in Australia in 2025?

The market size of the Online Toy Sales industry in Australia is $513.4m in 2025.

How many businesses are there in the Online Toy Sales industry in Australia in 2025?

There are 917 businesses in the Online Toy Sales industry in Australia, which has grown at a CAGR of 5.0 % between 2020 and 2025.

How may import tariffs affect the Online Toy Sales industry in Australia?

The Online Toy Sales 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 Online Toy Sales industry in Australia?

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

Has the Online Toy Sales industry in Australia grown or declined over the past 5 years?

The market size of the Online Toy Sales industry in Australia has been growing at a CAGR of 1.0 % between 2020 and 2025.

What is the forecast growth of the Online Toy Sales industry in Australia over the next 5 years?

Over the next five years, the Online Toy Sales industry in Australia is expected to grow.

What are the biggest companies in the Online Toy Sales industry in Australia?

The biggest companies operating in the Online Toy Sales industry in Australia are Amazon Australia, Wesfarmers and Associated Retailers

What does the Online Toy Sales industry in Australia include?

Traditional toys and games and Electronic toys and games are part of the Online Toy Sales industry in Australia.

Which companies have the highest market share in the Online Toy Sales industry in Australia?

The company holding the most market share in the Online Toy Sales industry in Australia is Amazon Australia.

How competitive is the Online Toy Sales industry in Australia?

The level of competition is moderate and steady in the Online Toy Sales 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.

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