The board game market - Germany

1.2 A dynamic global market

Market dynamism is confirmed

Revenues from the board game market World, ****-****, in billions of USD Source: ****

The board game market is expected to grow significantly by **% per year between **** and **** to reach a value of $** billion.

This development benefits from a favourable context with a great popularity among the days and the development of gaming habits, despite the important competition from digital channels

Two play schools

On the one hand, the "Ameritrash games", mostly created in the United States, are thematic games with often complex rules which are therefore reserved for initiated players. The theme, which is often popular, is paramount, the material is abundant in order to immerse the players in an imaginary world, and there is a significant element of chance.

On the other hand, the "Eurogames" (***) are games where the fluidity of the mechanism takes precedence over the theme, once the rules are understood. The most abstract of the Eurogames are called the "German games", which were very successful in the years ****-****. They are placement games with precise rules and a great deal of reflection. Emblematic figures of this type of games are, for example, the authors of German board games Reiner Knizia or Wolfgang ...

1.3 A growing segment in a relatively stable industry

The broader games and toys industry, registered by the Statistisches Bundesamt (***) under code EH**-**** "Spielwaren", has been relatively stable since ****. Indeed, the sector's turnover has remained around EUR *.* billion since that year. There is even a slight decrease of *% between **** and ****.

Sales in the games and toys market Germany, ****-****, in billions of US dollars Source: ****

More than ** million games were sold in Germany in ****. Below is outlined in detail the increase in sales of board games in Germany in **** by game category:

Strategy games +**% Dice games +**% Card games +**%, they account for **% of the German board game market Atmosphere games and games for adults  +**%, they account for **% of all board games in Germany Preschool games +*% and represent *% of the market Children's games are down slightly and account for **% of all games.

More generally, while sales of other toys tend to stagnate, board games and puzzles are the most popular segment of the toy market, accounting for almost **% of purchases.

1.4 Strong market growth following the Covid-19 pandemic

Admittedly, the Covid-** pandemic had a slightly recessive impact on the production of board games. This was due to problems in the supply chain due to restrictions imposed around the world. In addition, cafés that are also good places to play board games have had to close down, resulting in a decrease in demand. [***]

However, household demand rose sharply, more than offsetting the difficulties associated with the health crisis. In ****, demand increased sharply, creating a boom for board games and puzzles. As a result, the gaming market grew by **% over the previous year, more than double the growth of gaming products in general (***). A positive development is also expected for ****.

Board games have had a compensatory role in the face of the restriction of social life imposed by the pandemic. Individuals have gathered around their family and friends, a context conducive to the practice of board games. It is therefore not surprising that the category of family and adult games experienced the highest demand, with an increase of **%. Across the generations, this category offers a wide range of games, from quick-start games to high quality full-featured games.

Children's games sales grew at a high rate, with an increase of almost ...

2.1 Children: an important market for manufacturers

Top ** Christmas wishes Germany, ****, in % Source: ****

This study involved the responses of *** children aged * to ** years as to their preference in terms of Christmas gifts.

Board games are the fourth most popular gift for children at Christmas. More than one in ten German children want a board game for Christmas. Board games are only surpassed by mobile phones (***).

The market for children's board games therefore remains an important market in Germany, which does not seem to be affected, for the time being, by the growth of video games. On the contrary: the "digital detoxification" aspect has undoubtedly contributed to the renewed success of board games in recent years, prompting people to refrain from using electronic devices such as smartphones and computers.

As far as other parts of the population are concerned, the main consumers of board games are young parents around the age of **, and students.

2.2 Yearly events witnessing an attractive market

International gaming fairs

Germany is known for its major game and toy fairs, which further proves that games are an important market for Germans.

International Spieltage SPIEL, often called the Essen Game Fair after the name of the city where it is held, is an annual four-day fair held in October and open to the public. With around *,*** exhibitors from ** countries, and ***,*** expected guests in ****, SPIEL is the world's largest board game fair. Many new games are introduced every year, including European-style board games. [***]

In October ****, at the time of the exhibition, the German market was already recording **% growth for the first * months of the year, a figure that rises sharply as the festive season approaches in a sector marked by seasonality. [***]

The Nuremberg Toy Fair has been the world's largest toy and game fair since ****. It is reserved for professionals from the toy and game industry. Every year, over * days, around *,*** exhibitors from ** countries present their products to the **,*** visitors (***).

Game of the Year Awards

Another annual event that Germans love: the Spiel des Jahres (***). This award allows publishers to multiply their sales exponentially. Examples include the "Exit" series of games by Kosmos, which won the Kennerspiel of the Year ...

3.1 Value chain

The distribution chain for a board game is relatively clear: game publishers sell their goods to distributors, who in turn supply the resellers (***). At each stage of distribution a margin is taken, which inflates the price of the game for the consumer.

Nevertheless, some companies may be both publishers and distributors of games. This is often the case when they become large. In France, for example, the distributor Atalia, created in ****, has experienced very strong growth in * years, to the point of also entering the publishing business in ****. Large companies such as Ravensburger or Hasbro are publishers and distributors of games.

As the board game market has grown strongly in recent years, the number of players in the distribution chain is increasing very rapidly, be it publishers, distributors or even specialist stores.

3.2 The structure of the German board game market

The toy sector is listed by the Statistisches Bundesamt (***) under the code EH**-**** "Spielwaren". However, board games are not the only product category registered under this code as it concerns games and toys in the broadest sense. However, this gives a macroeconomic view of the market.

Number of companies in the games and toys market Germany, ****-****, in thousands Source: ****

In three years, the number of companies in the toys and games market has increased by **%. However, this increase is not linear since the number of companies has been declining since the peak in **** (***). This decline can be explained by several factors, in particular merger and acquisition operations with players buying out competitors, suppliers or customers to reach critical size, or bankruptcies. There are many bankruptcies in the toys and games market due to the relatively low barriers to entry, which constantly allows new players to enter the market, but does not guarantee success in the medium term.

Number of employees in the toys and games market Germany, ****-****, in thousands Source: ****

In ****, the games and toys industry employed *% more people than in ****. However, as with the number of companies, the number of employees has been declining since **** (***). As the ...

3.3 A production mainly Made in Asia

As in the toy industry, to which the board game industry is closely related, products are mainly manufactured in Asia, and in particular in China, in order to keep production costs as low as possible, as labour is cheaper in Asia.

With regard to producer prices, as competition is increasingly fierce among manufacturers of games (***) The production costs are estimated to be broadly the same for the German companies, since the games are generally manufactured at the same locations and with a similar raw material.

Prices have been very stable in recent years, falling by only *% between **** and December ****.

Import prices for games and toys France, Dec. **** - Dec. ****, in index base *** in **** Source: ****

3.4 Main distribution channels

As with toys in general, there are several places to buy board games:

Toy/game stores (***) are always in demand for their wide variety of items. Specialist shops are present in the form of many small shops specialising in board games, especially in the big cities. Supermarkets are also important places to buy games and toys, especially for Christmas holidays. Generalist (***) or specialised games/toys e-commerce sites are playing an increasing role in the distribution of games.

Share of e-commerce in the turnover of games and toys companies Germany, ****-****, in % Source: ****

Online commerce is gaining momentum in the distribution of games and toys. Between **** and **** it has risen by ** points to become the main distribution channel (***). If the available data stops in ****, it is obvious that the year ****, marked by the Covid-** pandemic, will have favoured an even faster development of online distribution of games and toys.

4.1 Categories of board games

Although it is difficult to classify all board games, as there is so much diversity in terms of rules or ways of playing, it is possible to make broad categories of games.

Card games: as their name suggests, card games are played with cards. Long practised only with traditional card games (***), they are nowadays played more and more with specific cards, such as Uno or Jungle Speed. Strategy games: very often board games, they use the deduction and analysis skills of the players, and sometimes even influence and manipulation. Among the most famous are Risk, Monopoly or Puerto Rico. Assembly games: they allow a very large number of players to have fun together. They can take the form of question games such as Trivial Pursuit, or other forms such as role-playing with support (***). Ambiance games: these are games with simple rules, short games, and in a small format. They are used to hosting meetings with friends, and have been very popular in recent years. Educational games: for very young children, they allow them to learn while having fun, starting from learning to read, calculate, space.

The above classification is not exhaustive, as there may be sub-categories. In addition, a game can ...

4.2 A constantly renewed range

Although the classics remain an important part of sales: Monopoly, Risk, Cluedo, Uno, etc., the share of innovation is very important in order to constantly renew the pleasure and curiosity of consumers. According to Hermann Hutter, more than *,*** titles appear each year in Germany, and are presented at trade fairs such as the Essen fair in October.

The current trend would lean towards fast and "fun" board games. In particular, there are more and more games being played in less than ** minutes, such as the very famous Dobble by Asmodee.

Finally, many publishers are trying their hand at digital board games, especially on smartphones, but without much success for the moment.

4.3 Prices

According to the game information site Tric Trac, a board game in Germany costs on average from ** to ** euros. In general, the prices of board games are in the price range €* - €**.

Germany, however, seems to be experiencing a phenomenon of downward price pressure, resulting mainly from a fierce struggle between distributors who may be several to own the distribution of the same game (***). As a result, many small distributors find it very difficult to survive.

The table below shows the prices of the different board games on the e-commerce site amazon.de.

4.4 Additional costs to be taken into account

In addition to the actual manufacturing of the sets, many additional costs have to be taken into account.

Research: especially for large companies (***), it is important to know the demand of families, children, etc., in order to produce games that correspond perfectly to expectations. Game development: often with the help of authors they pay, game manufacturers must invent the rules, the graphics, the mechanisms if necessary. Publishers are increasingly seeking to avoid these costs by buying games already developed from authors. Marketing: advertising, participation in fairs to promote the game. The marketing budget is very important for a game manufacturer. Distribution costs: finally, the various resellers, whether physical or online, must be remunerated.

According to several sources, the different margins of the actors can be estimated as follows:

Margin of the various players in the board game industry Germany, ****, in % Source: ****

5.1 Regulations

Board games are mainly composed of material elements, which are likely to represent a danger for a public that is too young, and therefore comply with strict regulations both on prevention and on the composition of the elements.

While the controversy over the supposed dangerousness of games and toys made in China have multiplied in recent years (***), more and more German manufacturers are highlighting the artisanal and local character of their production.

Finally, one of the most important legislative frameworks for board games relates to copyright. Indeed, the development of a game is often a long and costly process. To ensure that these efforts cannot simply be undone by third parties, copyright legislation can protect games.

In order for copyright to cover games as well, they must at least meet the general protection requirements. Thus, a board or parlour game must be a personal intellectual creation which is characterised by a certain level of design and individuality. The paragraphs of copyright law (***) apply exclusively to the concrete products of an intellectual achievement - the "works". A game idea or possible game rules are therefore not protectable without practical implementation.

However, the description of the rules of the game may benefit from ...

6.1 Segmentation of players

• Hasbro
• Kosmos
• Schmidt Spiele
• Haba Familygroup
• Pegasus
• Asmodee Group
• Jumbo
• Vedes
• Ravensburger
• Mattel