Mattel bets on India as long-term growth and manufacturing hub as digital content fuels toy demand

Mattel sees India's toy market reaching $5 billion by 2034, driven by digital content boosting physical toy demand, rising incomes and organised retail. Toy exports hit $186 million in FY26 with imports down 71% since 2019, signalling a shift toward local manufacturing.

— Source publishedSun, 12 Jul, 2026, 23:53 IST·First seen Mon, 13 Jul, 2026, 00:01 IST·Source ET Small Business

What happened

Mattel sees India as a key long-term growth and manufacturing hub, with digital content driving physical toy demand. India's toy market projected to hit $5

Key facts

  • $5 billion toy market by 2034
  • $186 million toy exports FY26
  • 153 countries
  • 71% import fall since 2019

Why this matters

The shift toward local manufacturing and a fast-growing $5B market signal opportunities in acquiring Indian toy makers, distribution networks, or digital-content IP tie-ups to accelerate footprint.

What to watch

  • Quarterly India revenue disclosures and export volume trends beyond FY26
  • BIS certification/quality-mark enforcement and QCO tightening on imports
  • New capex or JV announcements in Indian toy clusters (e.g., Karnataka, Tamil Nadu)
  • Competitor moves from Hasbro, Funskool, and local players on localization
  • Disney/OTT content release cadence driving licensed-toy demand spikes
  • Announce or expand India-based contract manufacturing partnerships and BIS-compliant local production lines
  • Bundle streaming IP tie-ins with retail toy launches targeting tier-1/tier-2 cities
  • Lock organized-retail shelf space via Reliance, DMart, and e-commerce (Amazon/Flipkart) exclusives
  • Localize price ladders with entry-tier SKUs to counter unorganized competition

Also reported by