Toys Market in Europe to Grow by USD 10.39 Billion (2025-2029), Expanding Product Portfolio Drives Premiumization, with Market Evolution Powered by AI – Technavio

NEW YORK, Jan. 31, 2025 /PRNewswire/ — Report on how AI is driving market transformation – 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 learning. Trends 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. Social interaction toys, such as those that encourage sharing, cooperation, negotiation, and interactive features, are also popular. Traditional toys and technology-driven toys coexist, with e-commerce platforms reaching a global audience. Parents seek quality toys that align with societal values, such as STEM toys, movies, TV shows, and video games. Sustainability is a key consideration, with eco-friendly practices and recycled materials becoming more common. Sales channels include specialty stores, department stores, and online stores, offering enriching experiences for children while promoting physical, emotional, and intellectual growth. 

The European toys market is highly competitive, with numerous vendors offering diverse products. Crowdfunding platforms like Kickstarter play a significant role in facilitating the development and distribution of toys and games. Vendors partner with manufacturers and distributors to ensure a smooth product lifecycle and secure funding from the public. Hasbro, Inc. Recently announced a collaboration with Epic Games to introduce a Fortnite Snake Eyes Outfit, marking the first-ever character integration for Hasbro. Such strategic partnerships enable vendors to expand their business and maintain a competitive edge. 

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• The European toys market is a significant sector, providing children with tools for play, entertainment, and creativity. Challenges in this industry include catering to children’s social interaction needs through action figures, dolls, puzzles, board games, and building blocks. Technology-driven toys, such as electronic devices, offer motor skill development, hand-eye coordination, and problem-solving abilities. Educational toys focusing on letters, numbers, shapes, and STEM subjects enrich cognitive skills. Cultural significance and societal values are reflected in toys, promoting social skills, sharing, cooperation, negotiation, and imaginative play. Parents seek quality toys for their children, with e-commerce platforms catering to a global audience. Urbanization influences living spaces, leading to a demand for indoor toys and outdoor play areas. Sustainability is crucial, with eco-friendly practices and recycled materials reducing packaging waste. Sales channels include specialty stores, department stores, and online stores, offering interactive features, digital interfaces, and critical thinking skills. Technology trends like augmented reality, virtual reality, and digital play balance physical activity and healthy lifestyles. Screen time management is essential for children’s well-being and development.
• Counterfeit toys, made from substandard materials, pose a risk to children’s safety. The rise of e-commerce has expanded the distribution network for these imitation products, making it difficult for consumers to distinguish authentic toys from fake ones. This market fragmentation leads to unstandardized pricing and decreases the profit margins for branded toy vendors. The increased availability of low-cost counterfeit toys negatively impacts the sales and pricing strategies of legitimate toy companies. This situation erodes brand equity and creates an uneven competitive landscape, potentially leading to market share loss.

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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

• 2.1 Specialty stores
• 2.2 E-retailers
• 2.3 Hypermarkets
• 2.4 Department stores

• 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. Their low replacement cycle depends on usage. Activity toys, such as frisbees, hula hoops, and skipping ropes, are for recreation, sports, and fitness. Outdoor games are popular among children above two. The expanding middle-class population, increasing disposable income, decreasing child mortality, and rising birth rate fuel market growth. Consumers’ increasing spending power drives demand for premium and branded construction toys, particularly Lego sets, and outdoor toys like frisbees. These factors contribute to the growth of the European toys market, particularly the activity toys and accessories segment.

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The European toys market is a vibrant and diverse industry, catering to the play and entertainment needs of children. Toys play a crucial role in the cognitive, emotional, and physical development of children, offering opportunities for intellectual growth, motor skills development, hand-eye coordination, and problem-solving abilities. From action figures and dolls to puzzles, board games, building blocks, and electronic devices, there is a vast array of toys available, each designed to foster creativity, social interaction, and imaginative play. Toys also hold cultural significance and instill societal values, such as sharing, cooperation, and emotional and physical growth. Educational toys, including those featuring letters, numbers, and shapes, provide a foundation for early learning and academic success. The European toys market continues to evolve, incorporating new technologies and trends to keep children engaged and entertained while supporting their overall development.

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 designed to foster creativity, social interaction, and skill development. Toys come in various forms, including action figures, dolls, puzzles, board games, building blocks, electronic devices, and more. They promote motor skills, hand-eye coordination, problem solving abilities, and imaginative play. Educational toys focus on cognitive skills, letters, numbers, shapes, and cultural significance. Societal values and social skills are also emphasized through toys, encouraging sharing, cooperation, negotiation, and interactive features. Digital interfaces, augmented reality, and virtual reality are increasingly popular in modern toys, while parents seek quality, STEM toys, and eco-friendly practices. The market reaches a global audience through various sales channels, including specialty stores, department stores, online stores, and e-commerce platforms. Toys contribute to physical, emotional, and intellectual growth, providing enriching experiences for children in urban and outdoor environments.

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 Technavio