Canada, after Russia, is the second largest country in the world, covering an area of 9,984,670 square kilometres. Its population consists of around 36 million people who live predominantly in the strip along the border to the USA, as well as the coastline. Around 80 % of the population live in the large cities within these regions. In relation to its space, the country has one of the lowest population densities in the world.

Economic growth in Canada

In 2017, Canada recorded an economic growth of around 3 %. Its gross domestic product in 2017 totalled around US$ 1.77 trillion. Since Canada relies heavily on exports, trade plays a key role. Its largest trading partner is the United Stated of America.

Canada’s private consumer expenditure last rose by a moderate but solid 2 %. Canadians particularly value product quality and customer service. Especially online purchases are on the rise. According to forecasts, sales generated online will grow by double-digit percentage rates.

Toy industry in Canada

The toy trade’s market volume is estimated to be between US$ 1.6 and 2.5 billion in Canada. This is comparable to that of many central European toy markets. The steady, consumer-happy population prompted 3 % growth for the toy industry during the first half of 2018. Still, Canada receives relatively little attention from the global market.

Growth drivers for Canada’s toy market

Toys and puzzles, followed by sports and leisure products, recorded the highest growth. Electronic toys in such forms as remote-controlled cars or video games are experiencing growing demand. Cutting-edge technologies like Augmented Reality or Virtual Reality are already used in this segment and boost sales considerably. Canadians, compared to the global market, are willing to expend more money on toys on average. More medium-end to high-end products are sold here.

Offline and online sales channels in Canada

Canadians buy toys offline, but also online. Next to international chains, Canadian players like Giant Tiger, Chapters Indigo or the Canadian Tire Corporation are crucial brick-and-mortar sales channels. Many Canadian retailers continue to expand their online offer because consumers are leaning more and more towards buying online. International retailers should take note of the country’s bilingualism. Online shops, notifications and mandatory information on toy packaging must be made available in both English and in French.