In 2022, the Russian toys & games retail market experienced a slight contraction of 1.4%, closing the year with a market value of $2,445.5 million. Despite this dip, forecasts for the market are optimistic, projecting an increase of 6.5% to reach $2,605.2 million by 2027. Russia contributes to 9% of the European toys & games retail market value, showcasing its significant position within the sector.

The market is characterized by intense competition, with both domestic and international players vying for consumer attention through price-based competition and product differentiation. Leading the charge in the Russian market are Wildberries and Detsky Mir Group, with Wildberries’ diverse product range helping to mitigate its reliance on the toys & games segment.

Despite facing challenges in 2020 and a recovery in 2021, the market again saw a downturn in 2022. The demographic makeup, with 17% of the population aged 0-14, provides a solid consumer base for the sector. However, factors like Russia’s low birth rate, at 8.51 per 1,000 births in 2022, and rising inflation, which hit 13.8% in the same year, have dampened market growth. The sector was further affected by the exit of international retailers such as Hamleys and the bankruptcy of domestic player Ulmart due to tightening sanctions amid the Russia-Ukraine crisis.

The Russian toys & games market had a compound annual growth rate (CAGR) of 3% from 2017. Looking forward, the Russian market’s growth is forecasted to slow to a CAGR of 1.3% through 2027, while the Czech and Polish markets are expected to see more robust growth at CAGRs of 5.8% each.

The toys & games sector’s future growth is anticipated to be driven by a resurgence in traditional recreational activities and a growing preference for social gaming. Technological advancements and the introduction of innovative toys & games are also expected to stimulate market expansion. With inflation rates predicted to decrease to 5-7% in 2023 and return to the 4% target by 2024, consumer confidence and spending are likely to recover, supporting a gradual upturn in the toys & games retail market.