Adult Toys Market Research and Analysis

 As a manager who has just entered the adult products industry, the initial feeling is like in the Garden of Eden. Everything is so fresh and interesting, adding a lot of color and fun to the intense work, which makes me secretly glad to enter this industry from time to time. Therefore, newbies, let's start the journey of exploration and discovery togehter:

 

What are adult toys?

Adult toys, also known as sex toys, usually refer to tools used in sexual activities to promote people's sexual pleasure. Many popular sex toys are designed to resemble the touch of human genitals and are divided into vibrating and non-vibrating. Below are the common classifications:

• According to product: adult toys include artificial penis, love egg, vibrator, artificial vagina, inflatable doll, sexy underwear, BDSM gear, etc. Among them, the vibrator is the most purchased, which is also the first commercial modern adult toy.
• According to the material, adult toys can be divided into silicone, plastic, metal, glass and other categories.
• According to gender, the adult toy market is divided into male market and female market.

There are a variety of sex toy companies around the world, all focused on different aspects of the industry. Below are some of the most personalized brand companies:

• The most luxurious brand: LELO
• The most affordable brand: PinkCherry
• The most complete range of toys: Lovehoney
• The best sex toys for beginners: Dame
• The most discreet packaging: Sephora
• Most inclusive for all bodies and identities: Enby
• Best for minimalist shoppers: Maude

 

What are the major markets of the adult toys?

Adult toys have always had a strong market demand, especially in overseas markets, among them, North America and Europe are the world's largest adult toy consumption regions, accounting more than 60% of the global market share. As early as 2020, the sales in North America accounted for more than 33% of the global market share, ranking NO.1,  53 percent of U.S. respondents used the sex toys to improve the sexual experience, and the United States and Canada have a higher acceptance of free sexual lifestyles. Below are the major adult toy markets in descending order:

• North America (USA, Canada and Mexico)
• Europe (Germany, UK, France, Italy, Russia, Turkey, etc.)
• Asia Pacific (China, Japan, South Korea, India, Australia, Indonesia, Thailand, Philippines, Malaysia and Vietnam)
• South America (Brazil, Argentina, Colombia, etc.)
• Middle East and Africa (Saudi Arabia, UAE, Egypt, Nigeria and South Africa)

One example: according to klarna, in the third quarter of 2022, the global online consumption of adult toys ranked by country: the United States, Australia, Sweden, the Netherlands, the United Kingdom, Ireland, Germany, Belgium, France, Norway, Finland, Sweden, Austria:

We must point out that some countries and regions regard sex toys as taboo, and even prohibit the production and sale of adult toys, such as Maldives, Saudi Arabia, UAE, Thailand, Vietnam, Malaysia, India (Section 292 IPC), and the Alabama of the United States also prohibits the production and sale of any imitation female sex organ toys.

 

What about the US Sex Toy Market ?

 

Basing on the SexualAlpha statistics,  the sex toy sales in the United States is estimated at $7.1 billion in 2020, in which the United States accounts for 28.92 percent of global toy sales. Whereas in 2021, sales are estimated at $12.6 billion (Business wire), almost doubled, of which the dildo is the most popular product, vibrator and BDSM products rank the second and the third respectively. By 2022, sales have increased to $13.6 billion (Yahoo Finance), the vibrator became the most popular type of sex toy, about 47% of respondents owning a vibrator, and anal toys and lubricants ranked the second and the third respectively.

 

 

On toy preferences, each state differs, such as in California and New York, wearable dildos are the most popular, while in northern Maine and southern Florida, artificial dildos sales is the highest.

 

 

In terms of gender distribution, 82% of American women own at least one sex toy, which is slightly higher than that of male respondents. Sex toys are most common among people aged 25 to 29. Men and women aged 40 to 44 own about the same percentage of sex toys.

 

How much americans are willing to spend on sex toys? According to a US News Agency survey:

Specifically, the American would spend $140.53 on top-of-the-line sex toys. In addition, most of the respondents will not buy toys from sex stores, and 38% of respondents will buy toys from Amazon. When it comes to using the toys, 89.2 percent of couples said they would accept trying, while only 10.8 percent said they were afraid. More than 30% of respondents said they prefer to use it with their partner. Using sex toys is a way to increase interest, which can help couples to spice up their sex life,helping them to escalate their relationship to a whole new dimension.

 

According to a Bespoke Surgical report in 2020, the top 10 states that spend on sex products are as follows:

 

 

Where is the global major adult toy production base ?

 

According to data released by Zhiyan Consulting, China is the world's largest producer of adult toys, occupying about 60%-80% of the total market. Although China's adult products industry started late, in fact, many enterprises have just entered the market, but according to the professional version of the Tianyan data, as of August 17 last year, there were more than 78000 enterprises related to adult products in China. Among them, more than 90% concentrated in the wholesale and retail industry.

 

Guangdong Province is a veritable global adult sex toy manufacturing center. According to Qichacha survey data, there are 7180 registered sex toy companies in Dongguan, the manufacturing center of adult products.

 

 

China is the world leader in labor-intensive manufacturing industry, and the production of sex toys is part of the manufacturing industry, naturally it accounts for a relatively high proportion. At the same time, most of the adult toys produced in China are for the export. According to statistics, in 2018, 90% of the products were exported, but only 10% was sold domestically.

 

 

According to Volza global export data, the largest export country is China mainland, with 7,124 exports, followed by Hong Kong, China, with 2,640 exports,  and the United States ranked third with only 905 exports. China's adult products exports far more than the other countries.

 

What are the characteristics of china's adult sex toys industry?

 

 

According to the statistics, at least more than 30 companies in China have raised funds, with a total amount of more than 1 billion RMB: six sex companies, including Wandefu (833877), Norse Technology (836309), Lovers (835587), Taqu (Seal Information: 837472), Taohuawu (838664) and Chunshuitang (839466), have been listed on the STAQ. The following data, citing from 36Kr, shows the period up to 30 August 2022:

 

 

 

 

 

What are the main distribution channels for the adult products?

 

According to the Statista statistics, the worldwide B2C sales analysis in 2021:

 

 

Because of COVID-19 and the need for privacy, consumers prefer to buy sex toys online, which promotes the growth of online platform sales. Online stores have also facilitated the purchase of sex toys by subscription, which has further boosted sales growth.

 

In 2022, direct-to-consumer (D2C) is the main distribution channel, accounting for 71.75 percent of market sales. The compliance of D2C channels is lower than that of e-commerce platforms and has better accessibility than specialty stores, that is why it is very popular. For example, an  article in September 2021 mentioned a statement from the Maude co-founder saying that the sex tech company expects 80% of its revenue to come from the D2C channel. In addition to the sales, it also provides valuable data insights that can be used to improve their products and marketing strategies. This data can be used to identify the trends and preferences of the target group, helping the company to create better products and more effective marketing campaigns.

 

 

For a general international trade company, the distribution channels are classified as below according to online and offline:

 

 

Online e-commerce platform help the sex toy companies reach a wider range of consumers. However, it is important to ensure that the platform's policies and guidelines are consistent with the products and services of sex toy companies. Some e-commerce platforms may have restrictions or guidelines that prohibit the sale of adult products. Before listing any sexual products or services, it is important to review the platform's policies to ensure that the listed products comply with all relevant laws and regulations. For example, Amazon allows the sale of some adult sex products, such as vibrators, as long as they meet certain requirements: the products must be brand new, unopened and in the original packaging. In addition, product images and descriptions must comply with Amazon's content guidelines, which prohibit explicit images and descriptions.

 

What about the developement trend of global sex toy industry?

 

In 2022, the global toy market was about $32.7 billion. The compound annual growth rate (CAGR) is expected to reach 8.4 from 2023 to 2030 (as shown in the figure below), and the value is expected to reach 80.7 billion US dollars by 2030. Increased spending power and rising living standards in developing countries and regions are the main factors driving market growth. Novel adult products dominate the sexual health industry and are becoming increasingly popular across all ages. The world's acceptance of LGBTQ + groups and the growing interest of women to try sex toy products are driving the market growth. Liberalization, the penetration of social media and the influence of popular culture have also led to a growing awareness of the importance of sexual health.

 

 

According to the Research Dive report, the industry's revenue from $24.929 billion in 2018, is expected to grow to over 45.7672 billion with a CAGR of 7.9 percent by 2026.  It is expected that Asia-Pacific markets have higher CAGR of 8.3 percent, which is due to a significant increase in online retail sales in economies such as China, New Zealand and Australia. The increasing acceptance of sex toys in Japan and China, coupled with China's manufacturing capacity helps the growth a lot. North America is the largest market for the sex toy industry and is expected to continue to grow. Sales of sex toys in North America are expected to reach $12.9 billion by 2026, the adult vibrator market in the United States, Canada, Japan, China and Europe will grow at a CAGR of 5.4 percent.

 

Basing on the Global newswire, China has been one of the fastest growing regions for sex toy sales. Countries such as Australia, India and South Korea are also driving the growth.  The Asia-Pacific sex toy market to expects the sales of $4.9 billion by 2027. The sex toy market in Latin America is expected to expand at a CAGR of 7.1 percent.

 

What about the regulations and cerfications of adult toy industry?

 

In the United States, the sex toy industry is an unregulated market, resulting in many people having negative experiences with low-quality toys. Because of the potentially dangerous consequences of using toys made of inferior materials, some have called for tighter regulation. The current adult products testing items worldwide: ortho-benzene test, bisphenol test, PAH polycyclic aromatic hydrocarbon test, ROHS test, heavy metal content test, skin irritation test, composition analysis, etc.. The current testing certifications needed for the adult toy products in different countries and regions :

• USA: Adult products exported to the United States require FDA certification, UL certification, toxicology testing, ASTM certification, CPSC certification, o-benzene testing, and California 65 testing.
• EU: The adult products to the EU requires CE certification, ROHS certification, food contact material testing, REACH testing, MSDS certification, bisphenol testing, PAH polycyclic aromatic hydrocarbon testing, and UN38.3 certification with lithium batteries.
• China: Adult products sold in China must have quality inspection report.
• South Korea: KC certification
• Japan: PSE certification
• Middle East and Africa: COC Certification

 

What are the obstacles/challenges facing by the global adult toy market?

 

Although the sex toy industry is growing rapidly, it still faces some hurdles to overcome. The biggest issue is the perception, stigma and taboos surrounding sex and sex toys. Here are some of the biggest challenges facing by the industry:

 

• The negative social perceptions about sex toys, including the perceived risk of addiction, may not be conducive to the growth of the market, as these perceptions may deter people from purchasing these products.
• Some countries, such as Saudi Arabia, UAE, Malaysia, etc., still prohibit the purchase and use of sex toys. This affects the availability of these products, especially in physical retail stores. This can make it difficult for suppliers to establish a presence in these areas and make education and advocacy efforts challenging.
• E-commerce sales has helped overcome these challenges and allowed buyers to remain anonymous. However, society's negative perception of sex toys has remained largely unchanged, posing a significant challenge to the growth of the sex toy market.

 

Adult toy industry is a huge niche industry and is growing rapidly, the trend is likely to continue as online sales grow, negative stereotypes decrease and more quality products appear every day. However, some people are worried that the lack of regulation in the adult toy industry will cause health problems for some people who buy inferior toys, so be sure to choose a reputable brand when buying!