Toys Market in Europe to grow by USD 10.39 Billion (2025-2029), driven by expanded product portfolios, AI-powered market transformation - Technavio

NEW YORK, Jan. 27, 2025 /PRNewswire/ -- Report with the AI impact on market trends - The toys market in europe size is estimated to grow by USD 10.39 billion from 2025-2029, according to Technavio. The market is estimated to grow at a CAGR of 4.7% during the forecast period. Expanding product portfolio influencing product premiumization is driving market growth, with a trend towards increasing number of strategic alliances. However, availability of low-quality counterfeit products poses a challenge. Key market players include 4M Industrial Development Ltd., Clementoni Spa, Evertoys, First Celtic Toys and Learning Ltd., HABA Sales GmbH and Co. KG, Hamleys of London Ltd., Hasbro Inc., JWS Europe Ltd., Kids2 Inc., Learning Resources Ltd., LEGO System AS, Mattel Inc., MGA Entertainment Inc., Ravensburger AG, Simba Dickie Group GmbH, Thames and Kosmos LLC, Takara Tomy Co. Ltd., The Toy Co., Theo Klein GmbH, Vivid Imaginations UK, and VTech Holdings Ltd..

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Market Driver

The European toys market is thriving, with a focus on providing children with toys that promote play, creativity, and social interaction. Popular categories include action figures, dolls, puzzles, board games, building blocks, electronic devices, and educational toys. These toys help develop motor skills, hand-eye coordination, problem-solving abilities, and cognitive skills. Trends include STEM toys, toys inspired by movies, TV shows, and video games, and technology-driven toys. Parents seek quality toys that enrich experiences, promote skill development, and align with societal values. Urbanization and living spaces influence the shift towards indoor toys, while outdoor play areas remain essential for physical activity and healthy lifestyles. E-commerce platforms cater to a global audience, offering a wide range of toys, from traditional to cutting-edge technology. Sustainability is a priority, with eco-friendly practices, recycled materials, and reduced packaging waste. Interactive features, digital interfaces, and augmented/virtual reality add to the play value. Social skills, such as sharing, cooperation, negotiation, and screen time management, are also addressed through toys. 

The European toys market is highly competitive, with numerous vendors offering diverse products. Crowdfunding platforms like Kickstarter enable vendors to actively seek funding for toy development, partnering with manufacturers and distributors to facilitate the entire product lifecycle. Vendors are forming strategic partnerships to expand their businesses through new distribution channels and maintain competitive edges. In February 2021, Hasbro, Inc. Announced a collaboration with Epic Games, introducing its first Fortnite character integration as a special Snake Eyes Outfit. These strategic moves help vendors stay competitive and adapt to market demands. 

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Market Challenges

• The European toys market is a significant sector, providing children with essential tools for play, learning, and social development. Toys foster creativity, social interaction, and cognitive skills through various forms like action figures, dolls, puzzles, board games, building blocks, electronic devices, and more. Challenges include catering to diverse societal values and cultural significance, integrating technology, and addressing urbanization's impact on living spaces. Parents seek quality toys that promote motor skills, hand-eye coordination, problem solving abilities, and imaginative play. Educational toys focusing on letters, numbers, shapes, and STEM concepts are increasingly popular. Movies, TV shows, and video games influence toy trends, driving sales on e-commerce platforms to a global audience. Eco-friendly practices, recycled materials, and sustainable production are essential as societal values shift towards environmental consciousness. Toys contribute to children's physical, emotional, and intellectual growth, offering enriching experiences and developmental tools for critical thinking and problem solving skills. Balancing technology-driven toys with traditional ones and managing screen time is crucial for a healthy lifestyle.
• Counterfeit toys, manufactured using substandard materials, pose a risk to children's safety. E-commerce platforms have expanded the distribution network for these imitation products, making it difficult for consumers to distinguish authentic toys from fake ones. This market fragmentation results in decreased price standardization, eroding brand equity for major vendors, and creating an uneven competitive landscape. The affordability of counterfeit toys negatively impacts the sales and pricing strategies of genuine toy vendors.

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Segment Overview 

This toys market in Europe report extensively covers market segmentation by

1. Product 
• 1.1 Activity toys and accessories
• 1.2 Soft toys and accessories
• 1.3 Outdoor and vehicle toys
• 1.4 Games and puzzles
• 1.5 Others
2. Distribution Channel
• 2.1 Specialty stores
• 2.2 E-retailers
• 2.3 Hypermarkets
• 2.4 Department stores
3. Geography 
• 3.1 Europe

1.1 Activity toys and accessories- The European toys market encompasses construction toys, activity toys, action figures, and accessories. Construction toys consist of building blocks, construction vehicles, sets, and worker models, primarily made of plastic, metal, or wood. These items have a low replacement cycle due to their usage. Activity toys include frisbees, hula hoops, and other recreational items for sports, fitness, and juggling, mostly used outdoors. The demand for outdoor and sports toys is projected to rise due to health concerns. Major brands like LEGO System AS dominate this segment. Macroeconomic factors, such as an expanding middle class with increasing disposable income, decreasing child mortality, and rising birth rates, contribute to market growth. The increasing number of children (0-14 years old) expands the target market, fueling growth opportunities. Additionally, rising disposable incomes and household final consumption expenditure enhance consumers' purchasing power, enabling them to buy premium and branded construction toys, driving the value sales of construction and activity toys in Europe.

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Research Analysis

The European toys market is a vibrant and diverse industry that caters to the play and entertainment needs of children. It encompasses a wide range of products, from traditional toys like action figures, dolls, puzzles, board games, building blocks, and electronic devices, to educational toys that focus on intellectual growth, motor skills, hand-eye coordination, and problem-solving abilities. These toys provide children with opportunities for imaginative play, cultural significance, and societal values, fostering emotional and physical growth. They promote social skills, sharing, and cooperation, enabling children to learn and grow in a fun and engaging way. Whether it's through imaginative play with action figures, building a puzzle, or learning letters, numbers, and shapes with educational toys, the European toys market offers a wealth of opportunities for children to explore, discover, and grow.

Market Research Overview

The European toys market is a vibrant and diverse industry that caters to the play and entertainment needs of children. It encompasses a wide range of toys, from traditional building blocks and puzzles to modern electronic devices and STEM toys. The market prioritizes creativity, social interaction, and skill development, offering children opportunities for imaginative play, problem solving, and cognitive growth. Toys serve as developmental tools, fostering motor skills, hand-eye coordination, and critical thinking abilities. The market is influenced by societal values and cultural significance, reflecting the importance of social skills, sharing, cooperation, and negotiation. Interactive features, digital interfaces, and augmented reality are increasingly popular, appealing to a global audience. Parents seek quality toys that align with educational components and eco-friendly practices, while living standards and urbanization impact the availability of indoor and outdoor play areas. Movies, TV shows, video games, and e-commerce platforms contribute to the market's growth, offering a wide range of choices for children. The industry continues to evolve, integrating technology, sustainability, and health-conscious initiatives, ensuring enriching experiences for children while addressing the needs of modern families.

Table of Contents:

1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation

• Product
• Activity Toys And Accessories
• Soft Toys And Accessories
• Outdoor And Vehicle Toys
• Games And Puzzles
• Others
• Distribution Channel
• Specialty Stores
• E-retailers
• Hypermarkets
• Department Stores
• Geography
• Europe

7 Customer Landscape
8 Geographic Landscape
9 Drivers, Challenges, and Trends
10 Company Landscape
11 Company Analysis
12 Appendix

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SOURCE Infiniti Research, Inc.