Europe Toys Market Size, Share and Industry Trends | 2034

Insight Pro Analytic
Jul 14
4 min read

Europe Toys Market Outlook

The Europe toys market attained a value of approximately USD 14.51 billion in 2024. Aided by the rising demand for educational, tech-integrated, and sustainable toys, the market is projected to grow at a CAGR of 2.70% between 2025 and 2034 to reach nearly USD 18.94 billion by 2034. The toys industry in Europe reflects a dynamic blend of tradition and innovation, with a strong emphasis on quality, safety, and educational value. European parents and caregivers place high importance on developmental benefits, which has significantly influenced product innovation and market expansion.

Europe Toys Market Size

The Europe toys market is substantial and continues to grow steadily. In 2024, it reached a valuation of USD 14.51 billion, supported by consistent consumer spending, a strong retail network, and the introduction of technologically advanced products. Despite economic uncertainties in some parts of the region, the toy sector has shown resilience, buoyed by rising demand in both traditional segments like dolls and board games and newer segments such as STEM toys and smart toys. As digital platforms and e-commerce channels become more prominent, the market is expected to see greater outreach and more diversified consumer bases in the coming years.

Europe Toys Market Share

The market is notably led by Western European countries such as Germany, France, and the United Kingdom, which collectively account for a dominant share of the European toys industry. Germany leads the market owing to its strong manufacturing infrastructure, export capabilities, and preference for educational toys. France and the UK are close contenders, driven by evolving consumer expectations, marketing innovation, and strong brand presence. Northern and Southern European countries also contribute significantly, with Scandinavian nations particularly focusing on sustainably made toys. Brick-and-mortar toy stores, large retailers, and online platforms all play important roles in distribution, although the latter is increasingly expanding its share with the rise of digital commerce.

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Europe Toys Market Trends

One of the most prominent trends in the Europe toys market is the integration of technology with traditional play. Augmented reality (AR), virtual reality (VR), and app-based interaction are becoming mainstream, enhancing engagement and learning experiences. Another noticeable trend is the surge in demand for educational and STEM-based toys. These toys encourage learning in science, technology, engineering, and mathematics from a young age and are popular among both parents and educators.

Sustainability is a core trend gaining momentum. European consumers are highly environmentally conscious, and this has led to a sharp increase in demand for eco-friendly, recyclable, and non-toxic toy products. Biodegradable materials and plastic alternatives are being explored by manufacturers to align with consumer expectations and regulatory requirements. Gender-neutral toys are also witnessing growing acceptance, reflecting a shift toward inclusivity and balanced cognitive development. Additionally, character-based toys tied to movies, streaming content, and digital games continue to influence purchasing behaviour across all age groups.

Drivers of Growth

Several factors are fuelling the growth of the Europe toys market. Rising disposable incomes and increased spending on child development products have positively impacted sales. Educational institutions and early learning centres are also incorporating more toy-based learning, boosting the demand for educational and skill-building toys. A growing number of dual-income households is another contributing factor, where parents are inclined to invest in toys that aid in cognitive, social, and physical development.

Population growth in key regions and a stable birth rate, particularly in countries like France and the Nordics, provide a solid foundation for sustained demand. Furthermore, increasing exposure to global entertainment content has elevated the demand for licensed toys associated with popular movie franchises and television characters. The growth of organised retail and the expansion of e-commerce platforms have also made toys more accessible to consumers across various economic strata, thereby enhancing market penetration.

Europe Toys Market Segmentation

The market can be divided based on product, by age group, distribution channel and region.

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

Industry Key Players

Some of the major players explored in the report by Expert Market Research are as follows:

LEGO System A/S
Hasbro, Inc.
Mattel, Inc
Clementoni Spa
The Goliath Games LLC and B.V Companies
Ravensburger Group
Thames & Kosmos
BRUDER Spielwaren GmbH + Co. KG
Abysse Corp
Steiff Retail GmbH
Others

Challenges and Opportunities

Despite positive growth, the Europe toys market faces several challenges. Stringent safety regulations, although beneficial for consumer protection, can increase compliance costs for manufacturers. The fluctuating cost of raw materials, particularly plastics and electronics, impacts pricing and profitability. Additionally, the presence of counterfeit and low-quality imports poses a risk to consumer trust and brand equity.

Changing demographics and shifting entertainment preferences among children present another challenge. Many children are increasingly inclined towards digital gaming and online content consumption, which can reduce demand for physical toys. However, this challenge also opens doors to integrate physical toys with digital experiences, thereby creating new hybrid play models.

Opportunities abound in the customisation and personalisation of toys. Parents are increasingly seeking unique, personalised products that reflect their child’s individuality. The continued expansion of e-commerce offers another growth avenue, especially with the rise in social commerce and influencer-driven toy marketing. Furthermore, there is a growing market for toys aimed at adults—such as collectibles, puzzles, and stress-relieving toys—providing companies with diversification opportunities.

Europe Toys Market Forecast

Looking ahead, the Europe toys market is expected to exhibit stable and sustained growth throughout the forecast period of 2025-2034. With a projected CAGR of 2.70%, the market is estimated to reach USD 18.94 billion by 2034, up from USD 14.51 billion in 2024. The market will continue to benefit from ongoing trends in sustainability, education-based play, and technological integration.

As consumer awareness and expectations evolve, companies that align their products with values such as safety, sustainability, educational impact, and inclusivity are likely to lead the market. Continued innovation, strong branding, and strategic partnerships with entertainment franchises will also remain key drivers of success in the coming years. With rising digital connectivity and a growing appetite for innovative play experiences, the European toys industry is well-positioned for future expansion.