Europe Toys Market Size, Share and Growth Analysis Report - Forecast Trends and Outlook (2024-2032)

Europe Toys Market Outlook

In 2022, the number of live births in the European Union reached 3.88 million babies while the overall fertility rate in the same year stood at 1.46 live births per woman. France boasted the highest fertility rate in the EU (1.79 births per person), followed by Romania (1.71), Bulgaria (1.65), and Czechia (1.64) while the lowest fertility rate was experienced in Malta (1.08 births per woman), Spain (1.16), and Italy (1.24). This is driving the demand for toys that can promote the cognitive, social, and behavioural development of children while providing them with the opportunity to explore, create, and connect with the world around them.

The increasing availability of toys with different features and colours that can create a personalised and unique play experience, foster creativity and self-expression in children, and enhance the play experience is aiding the market. The rising emphasis on active and outdoor play among children is boosting the demand for water play toys, sports equipment, and gardening kits that promote social interaction, physical activity, and a connection with nature. With parents increasingly seeking to balance screen time, the sales of toys that foster active engagement are surging.

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Europe Toys Market Trends

Rising demand for interactive and educational toys

In Europe, there is a rising demand for educational and interactive toys, combining music, problem-solving, and storytelling, that can stimulate children’s minds and advance their learning while facilitating their motor skill development, problem-solving skills, and hand-eye coordination, and promoting social interaction. Such toys also improve kids’ literacy and concentration, memorisation and identification skills, and enhance creativity and the development of specific senses such as hearing, sight, and touch. The expansion of educational and interactive toy subscription services is aiding the Europe toys market development. For instance, in May 2024, Liledu, a Lithuanian-founded educational toy subscription service, announced a EUR 500,000 investment for expanding into the UK market. The company offers age-appropriate educational toys, featuring sets of personalised and premium items, tailored to specific development stages of a child. Besides, the increasing development of innovative educational and interactive toys by key players is aiding the market. In February 2024, Just Play’s line of FurReal interactive pets, licensed by Hasbro, was launched in major UK retail channels. The collection, including pets like Wag-a-lots, Newborns, Walk-a-lots and My Minis, cater to different styles of play and boast interactive features such as moving tails and heads when stroked. 

Europe Toys Market Growth

The expansion of the e-commerce sector

In the European Union, internet penetration among the age group between 16 and 74 years reached 91% in 2022, and the number of online shoppers increased from 55% in 2012 to 75% in 2022. Customers in the Netherlands (92%), Denmark (90%) and Ireland (89%) accounted for the largest share of internet users purchasing goods and services online in 2022. According to the European Toy Industries Association, over 1 in every 4 toys in Europe is sold online, influenced by evolving consumer behaviour and rising investments in e-commerce platforms by key players. In May 2021, one of the prominent education toy brands, Edx Education, announced the launch of its UK retail website, www.shopedx.co.uk, offering British educators and parents exclusive discounts and deals, more competitive prices, and expert advice for supporting families on their home learning and play adventure. With advancements in technology, e-commerce platforms are deploying augmented reality (AR) and personalisation to enhance the shopping experience of customers, hence shaping the Europe toys market dynamics and trends.

Growing focus on sustainability

As per the new Eurobarometer survey on ‘Attitudes of Europeans towards the environment’ published in May 2024, over three-quarters of Europeans (78%) are worried about the direct effect of environmental issues on their daily life and health. The survey also stated that over four in five respondents (84%) are concerned about the impact of harmful chemicals in everyday products on their health. Moreover, a survey conducted across six European markets revealed that more than half of Dutch and Italian customers regard sustainability as an important consideration while purchasing a service or product (51% and 54%, respectively). Key players are capitalising on the growing trend of sustainability by including renewable, natural, and biodegradable materials in their products. For instance, in May 2024, Playmobil launched a range of plastic toys made from 95% sugarcane for inclusion in McDonald’s Happy Meals in Germany. Furthermore, the launch of new eco-friendly toy brands in Europe is positively influencing the growth of the Europe toys market. In September 2023, a new eco-friendly toy brand selling vibrant and fun jigsaw puzzles for children, Play Shed Puzzles, was launched in Manchester. The jigsaw is handmade in Britain using chlorine-free paper, vegan inks, and 100% recycled millboard.

Technological advancements and innovations

Technological advancements and innovations are revolutionising the Europe toys market landscape. Artificial intelligence, machine learning, sensors, Bluetooth connectivity, and the Internet of things (IoT) are increasingly being deployed in smart and app-integrated toys. Such toys respond to the actions of children, offer guidance and feedback to enhance play, and enable progress tracking and personalised play experiences. Pictionary vs AI and Dog-E (a pet robotic dog) are some of the popular toys integrated with AI, sensors, and IoT in Europe. Augmented and virtual reality (AR/VR) are also integrated into toys to create immersive play experiences and make games more engaging and educational in subjects such as science and history through simulation and virtual field trips. In addition, 3D printing is transforming the production of toys by enabling designers to swiftly manufacture different prototypes and efficiently create complex shapes and designs for the development of customised toys.

Market News

September 2024

Playmobil announced the launch of Playmobil Junior, its new range of diverse play sets crafted with eco-friendly plastics, in the United Kingdom. Playmobil Junior features a collection of Disney princess sets, ranging from iconic characters like Moana to Cinderella, to provide children with the opportunity to develop their creativity and skills.

May 2024

New York’s iconic toy store FAO Schwarz announced the opening of its first store in Paris, France, offering a blend of unique experiences, high-quality play, and entertainment to children. The store aims to provide customers with quality toy and gift brands and distinctive sales experiences.

Europe Toys Market Dynamics

The Europe toys market growth can be attributed to the rising demand for interactive and educational toys, which incorporate storytelling, music, and problem-solving, that can enhance the cognitive and motor skills of children while promoting creativity, social interaction, and literacy. The robustly growing e-commerce sector in Europe is also shaping the market expansion. With internet penetration reaching 91% in 2022, there is an increasing demand for toys on online platforms amid evolving customer behaviours and the introduction of new e-commerce platforms with exclusive discounts. Moreover, around 78% of consumers in Europe are concerned about environmental issues, which makes sustainability one of the top priorities for toy manufacturers. Brands are increasingly incorporating sustainable, renewable, and biodegradable materials to capitalise on the growing trend of sustainability. With growing advancements in technologies such as AI, IoT, and AR/VR, key players are developing toys with personalised toys integrated with sensors, AI, IoT, and machine learning with interactive experiences. Manufacturers are also leveraging 3D printing technology to develop complex and customised toys and make toys more engaging and educational.

Europe Toys Market Challenges

In 2022, toys dominated the list of dangerous product alerts in the European Union, comprising 23% of all notifications. Hazards of toys include choking, cutting, strangulation, blocking, chemical danger, and puncturing. The toy industry contributes to nearly 26 million tons of CO2, and 80% of the toys end up in incineration plants, landfills, or oceans. Hence, stringent regulations surrounding waste management and environmental laws can challenge small toy manufacturers. Furthermore, the Europe market for toys is highly competitive, with new players constantly foraying into the regional market. This can reduce the profitability of companies in the toys market in Europe.

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Europe Toys Industry Segmentation

The EMR’s report titled “Europe Toys Market Report and Forecast 2024-2032” offers a detailed analysis of the market based on the following segments:

Market Breakup by Product

• Action Figures
• Building Sets
• Games and Puzzles
• Dolls
• Sports and Outdoor Toys
• Plush
• Others

Market Breakup by Age Group

• Up to 5 Years
• Between 5 to 10 Years
• Above 10 Years

Market Breakup by Distribution Channel

• Hypermarkets and Supermarkets
• Departmental Stores
• Online Channels
• Others

Market Breakup by Region

• Germany
• United Kingdom
• France
• Italy
• Spain

Europe Toys Market Share

By Product Insights

The Europe toys market value is increasing amid the growing popularity of building sets, especially from brands like LEGO, in the region. Building sets foster creative expression and imagination, develop critical thinking and problem-solving abilities, improve dexterity and fine motor skills, and promote communication skills and teamwork. The increasing popularity of building sets in different themes like fantasy, space, and cities, among others, is aiding the segment’s growth.

Meanwhile, action figures foster self-expression and imaginative play, help kids develop essential problem-solving and social skills, improve hand-eye coordination, and enhance creativity. The increasing launches of action figures by key players are aiding the market expansion. For instance, in May 2024, Hasbro’s online destination for fans and collectors, Hasbro Pulse, launched a new series of action figures for Marvel and Star Wars enthusiasts, featuring premium decoration and design.

By Age Group Insights

Individuals aged above 10 years, comprising teenagers and ‘kidults’ are driving the sales of toys, driven by the rising demand for toys evoking comfort and a sense of nostalgia. Puzzles, building sets, and games are gaining significant popularity among this age group as they foster mental stimulation, feature intricate and artistic designs, and provide a meditative experience. Licensed toys from big franchises such as Marvel, Star Wars, Pokémon, and DC, buoyed by the affinity to certain ‘fandom’ and a touch of nostalgia, are also in high demand. The rising sales of toys (47%) from online channels among this age group also bolsters the Europe toys industry revenue.

Meanwhile, the demand for toys among kids up to 5 years is surging as they support the development of social, cognitive, and motor skills during early childhood. Parents are increasingly preferring sensory play items and STEM toys as they make learning engaging and fun. The development of non-toxic, safe, and durable toys for kids aged up to 5 years is also propelling the Europe toys market expansion.

By Distribution Channel Insights

Online channels constitute a significant portion of the market share, attributed to the availability of a diverse range of toys. Europe is the third largest e-commerce market in the world, with e-commerce penetration reaching 97.25%, 70%, 62%, and 45.65% in the United Kingdom, Germany, France, and Italy, respectively.

Home delivery, global access, attractive discounts and sales, comprehensive product descriptions, and ease of price comparisons enhance the appeal of online channels for purchasing toys. In October 2022, WHP Global announced the launch of ToysRUs.co.uk and BabiesRUs.co.uk, its digital flagship e-commerce websites, to offer a massive range of products from over 300 brands to customers in the United Kingdom.

Meanwhile, the sales of toys from supermarkets and hypermarkets are increasing as they provide enhanced convenience, competitive pricing, a wide variety, and one-stop shopping destinations. Attractive display of toys in supermarkets and hypermarkets aimed at capitalising on impulse purchasing behaviour is further boosting the Europe toys market revenue. In July 2024, toy company Wyncor signed an agreement with Carrefour to launch its Miraball range of toys in stores across Europe.

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Europe Toys Market Regional Insights

United Kingdom Toys Market Analysis

The growth of the toys market in the United Kingdom can be attributed to the growing popularity of STEM and educational toys. Over 54% of British buy STEM and educational toys to promote learning and engagement in STEM and enable children to develop essential knowledge and skills in a playful manner. Moreover, collectibles, ranging from nostalgic classic board games and model kits to high-end collectible toys, targeted at kidults are witnessing a surge in popularity. For instance, China-based collectible designer toy company, Pop Mart, launched its new store in Oxford Street in June 2023, offering unique collectibles and designer toys to both kidults and kids. The increasingly challenging economic landscape is prompting key players to launch affordable toys that provide great value to customers.

Germany Toys Market Insights

The toys demand growth in Germany is being driven by the rising demand for toys from online retail channels such as ikea.com, amazon.de, otto.de, mytoys.de, and limango.de, among others. Key players in the country are increasingly focusing on manufacturing high-quality sustainable toys due to rising environmental awareness. For instance, in February 2024, Playmobil announced that it aims to manufacture all its toddler toys, Playmobil 1.2.3 (toddler) range, with at least 90% plant-based raw materials.

France Toys Market Growth

The toys demand forecast in France is being fuelled by the growing popularity of collectibles in the country. As the ‘kidult’ phenomenon gains traction, key players actively introduce limited-edition collectibles and collaborate with popular movie, series, and video game franchises to enhance the appeal of collectibles. In February 2023, Pop Mart, a Chinese collectible art toys retailer, inaugurated its first store in the Westfield Forum des Halles shopping mall, Paris, to expand its presence in continental Europe and capitalise on the growing demand for collectibles. As per the Europe toys market analysis, major toy retailers such as King Jouet are merchandising second-hand toys, along with their brand-new counterparts, to enable customers to easily compare their prices and quality.

Italy Toys Market Trends

The growing popularity of plushies in the country is providing lucrative Europe toys market opportunities. For instance, in April 2023, the popular Gigantosaurus toy line and plush collection, based on the Cyber Group Studios hit TV series, became available in Italy, and distributed under the Grandi Giochi brand. The toy and plush line features various mini figures, the Mighty Mini Friends Egg, and four super-soft characters that fans can collect. The growing environmental consciousness in Italy is further pushing leading toy manufacturers like Italeri to develop toys from renewable and sustainable materials.

Competitive Landscape

Key players in the market are integrating technologies such as AI, IoT, and sensors to create smart toys that offer enhanced playtime and educational features. They are also actively investing in research and development (R&D) activities to explore new technologies, materials, and educational concepts to gain a competitive advantage. 

Key Industry Players

LEGO System A/S

LEGO System A/S is a toy company founded in 1932 with headquarters in Billund, Denmark. The company manufactures branded toys for children globally and has also built several amusement parks all around the world.

Hasbro Inc.

Hasbro Inc. was established in 1923 and is based in Rhode Island, United States. This multinational plastic company is involved in manufacturing consumer toy products such as dolls and action figures.

Mattel Inc.

Mattel Inc., founded in 1945, has its headquarters located in California, United States. It is a toy company that manufactures and designs its own toy products and supplies them to consumers worldwide.

Other key Europe toys market players include Clementoni Spa, The Goliath Games LLC and B.V Companies, Ravensburger Group, Thames and Kosmos, BRUDER Spielwaren GmbH + Co. KG, Abysse Corp, and Steiff Retail GmbH, among others.

Recent Developments

March 2024

Hamleys opened its second flagship store in Galleria Alberto Sordi, Rome, to expand its presence in Italy. The store, spread over 2 levels and a mezzanine, is entirely dedicated to toys and showcases toys by prominent brands such as Nerf, Lego, and Barbie, among others.

June 2023

WHP Global announced a retail partnership between Toys"R"Us ANZ Limited to launch 9 WHSmith High Street stores, bringing Toys"R"Us shop-in-shops across the United Kingdom. Each Toys”R”Us shop-in-shop features various products and activities from prominent toy brands such as Bluey, Barbie, Marvel, LEGO, Peppa Pig, Star Wars, and Playmobil, among others.