Sustainable Toys Market Size, Share, Trends, Growth 2032

Sustainable Toys Industry Prospective:

The global sustainable toys market size was worth around USD 22.2 billion in 2023 and is predicted to grow to around USD 64.1 billion by 2032, with a compound annual growth rate (CAGR) of roughly 12.5% between 2024 and 2032.

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Sustainable Toys Market: Overview

The sustainable toys are made from mostly biodegradable natural materials, including linen, bamboo, cotton, water-based inks, and renewable wood. It was made with consideration for the environment. A technique devoid of carbon emissions, greenhouse gases, or harmful substances released. The sustainable toys industry is growing significantly due to the interest of parents in sustainable toys; this trend is expected to remain over the projection period. This is owing to the growing awareness regarding the negative effects of the chemicals and materials used in toys on their health.

Key Insights

• As per the analysis shared by our research analyst, the global sustainable toys market is estimated to grow annually at a CAGR of around 12.5% over the forecast period (2024-2032).
• In terms of revenue, the global sustainable toys market size was valued at around USD 22.2 billion in 2023 and is projected to reach USD 64.1 billion by 2032.
• The increasing introduction of innovative products is expected to drive the sustainable toys market over the forecast period.
• Based on product type, the sports and outdoor toys segment is expected to dominate the sustainable toys market over the forecast period.
• Based on age group, the up to 5 Years segment is expected to hold the largest market share over the forecast period.
• Based on distribution channel, the hypermarket/supermarket segment is expected to hold the largest revenue share over the forecast period.
• Based on region, North America is expected to dominate the market during the forecast period.

Sustainable Toys Market: Growth Drivers

Rising disposable income drives market growth

The market for sustainable toys is expanding due to rising disposable income, which gives buyers the ability to choose high-end, environmentally friendly products over less expensive ones. Even though sustainable toys are more expensive, families who have higher disposable means are more likely to purchase them since they appreciate the safety and environmental advantages.

Furthermore, parents who have more money to spend are more likely to buy toys that are safe for kids, like ones composed of natural, non-toxic materials. For instance, Euromonitor predicts that both household spending and worldwide disposable incomes will increase by 2.6% in 2022.

Sustainable Toys Market: Restraints

High production cost hinders market growth

Biodegradable plastics, organic cotton, FSC-certified timber, and recycled materials are a few such sustainable materials that are generally more costly than conventional polymers. Higher procurement costs result from the restricted supply of sustainable, high-quality raw materials.

Furthermore, low-waste or energy-efficient procedures are frequently used in sustainable manufacturing, which might require more expensive, sophisticated machinery. Investing more in materials and procedures is necessary to meet certifications such as Fair Trade, FSC, or non-toxic safety standards. Furthermore, a substantial R&D expenditure is required to produce novel recyclable or biodegradable materials. Thus, the high production cost hinders the growth of the sustainable toy market.

Sustainable Toys Market: Opportunities

Rising environmental awareness and ethical consumption offer a lucrative opportunity for market growth

Eco-aware consumerism is definitely on the rise since more than 60% of customers globally want cautiously produced goods. Growing global awareness of environmental sustainability and ethical consumerism is driving demand for products reflecting these values, including toys, which is increasing their market. Made from environmentally friendly materials like wood, organic textiles, and recycled plastics, sustainable toys—made of safer ingredients and smaller carbon footprint—are growing in appeal. This trend is driving the sustainable toys industry for sustainable toys as consumers actively seek goods that support a greener and more responsible way of life.

The toy business has been rapidly expanding since new designs and items were introduced daily. With this new production, novel materials are being researched. Lego, for instance, has pledged to use sugarcane in all its goods by 2030 and is now building bricks out of sugarcane plastic, a biodegradable, sustainably generated substance free of long-term environmental impact.

Sustainable Toys Market: Challenges

Competition from low-cost alternatives poses a major challenge to market expansion

The market for sustainable toys faces significant competition from low-cost alternatives, especially in areas where customers are price-sensitive and have limited additional money to spend. Traditional plastic toys are far less expensive than sustainable alternatives because of their mass production, which takes advantage of low-cost materials and well-established manufacturing techniques.

Furthermore, a lot of buyers, especially in developing nations, choose inexpensive plastic toys because they are more concerned with affordability than sustainability. Therefore, competition from low-cost alternatives poses a major challenge for the sustainable toys market expansion.

Sustainable Toys Market: Report Scope

Sustainable Toys Market: Segmentation

The global sustainable toys industry is segmented based on product type, age group, distribution channel, and region.

Based on product type, the global sustainable toys market is segmented into action figures, building sets, dolls, games/puzzles, sports and outdoor toys, and others. The sports and outdoor toys segment is expected to dominate the market over the forecast period. Sales of sports and outdoor toys are increasing as more parents prioritize eco-friendly, non-toxic materials. The transition to sustainable alternatives is encouraged by growing awareness of the negative environmental effects of plastic trash. Additionally, growing disposable incomes in areas like Latin America and Asia-Pacific lead to more money being spent on eco-friendly outdoor toys and sports. In these areas, demand is also fueled by urbanization and the growth of outdoor leisure areas.

Based on age group, the global sustainable toys industry is bifurcated into Up to 5 Years, 5 to 10 Years, and Above 10 years. The Up to 5 Years segment is expected to hold the largest market share over the forecast period. Safe, entertaining, and developmentally appropriate toys are essential for this age group, and environmentally conscious parents are giving sustainability greater importance when making purchases.

Based on distribution channel, the global sustainable toys industry is bifurcated into hypermarkets/supermarkets, specialty stores, departmental stores, online channels, and others. The hypermarket/supermarket segment is expected to hold the largest revenue share over the forecast period. Supermarkets and hypermarkets are seen as trustworthy suppliers, which increases customer confidence in buying eco-friendly toys from them. Furthermore, regular marketing campaigns that include discounts or package deals appeal to consumers who are price conscious.

Sustainable Toys Market: Regional Analysis

North America dominates the market over the projected period

North America is expected to dominate the global sustainable toys market. Strong forces behind the sustainable toys sector include environmental awareness and deliberate consumerism. Consumers in the area primarily value safe, non-toxic play choices for their youngsters.

Demand for sustainable toys is strengthened even more by non-profit companies and educational institutions supporting sustainability. Eco-conscious specialty stores and online retail sites are especially important in giving customers options that accord with their ideals. Globally behemoths in toy-making, like Mattel, Hasbro, and Lego, have around forty percent of the US toy market share.

Although they are the main toy retailers in the country, the US is seeing a progressively widening niche for ecologically friendly and educational toys as well. One such company that is rising in this category is Alex Brands. Comprising various antique, educational, and ecologically responsible toys, the brand aims to postpone children's unavoidable usage of modern devices. All of these businesses are constantly striving to establish their own publicly traded firm or reach a sales figure of $200 million.

Sustainable Toys Market: Competitive Analysis

The global sustainable toys market is dominated by players like:

• Le Toy Van
• Manhattan Toy Company
• Clementoni
• Tegu
• Hape
• Bajo
• Plantoys
• Legler
• Zoë b Organic
• Eco Kids
• ImagiPLAY
• Green Toys
• Goliath Games
• Hasbro
• Lego
• Moluk

The global sustainable toys market is segmented as follows:

By Product Type

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

By Age Group

• Up to 5 Years
• 5 to 10 Years
• Above 10 years

By Distribution Channel

• Hypermarket/Supermarket
• Specialty Stores
• Departmental Stores
• Online Channels
• Others

By Region

• North America
  • The U.S.
  • Canada
• Europe
  • France 
  • The UK
  • Spain
  • Germany
  • Italy
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • Southeast Asia
  • Rest of Asia Pacific
• Latin America
  • Brazil
  • Mexico
  • Rest of Latin America
• Middle East & Africa
  • GCC
  • South Africa
  • Rest of Middle East & Africa