Educational Toys Market - Global Industry Size, Share, Trends, Opportunity, and Forecast, 2021-2031

The Global Educational Toys Market is projected to expand from USD 63.21 Billion in 2025 to USD 89.31 Billion by 2031, registering a CAGR of 5.93%. These specialized play materials are designed to enhance motor proficiency, cognitive growth, and academic foundations during critical developmental stages. Market growth is largely driven by a growing parental focus on early childhood education and the incorporation of Science, Technology, Engineering, and Mathematics (STEM) principles into the home. This sector displays remarkable economic resilience; for example, the British Toy & Hobby Association reported in 2025 that the building sets category saw a 6% value increase in the UK market over the prior year, defying broader retail difficulties.

However, the market encounters significant hurdles due to the widespread availability of unregulated and non-compliant goods on digital marketplaces, which erodes consumer confidence. This situation disadvantages compliant manufacturers who strictly adhere to safety protocols yet face aggressive price undercutting from inferior alternatives. The risk remains acute; according to Toy Industries of Europe in 2024, an assessment of products sold by third-party vendors on major online platforms discovered that 80% of the tested toys did not meet mandatory safety regulations.

Market Drivers

The escalating global appetite for STEM and STEAM educational toys acts as a primary market catalyst, propelled by parents aiming to instill problem-solving and technical capabilities in their children early on. This preference has shifted spending habits toward constructive play items that deliver concrete cognitive advantages, enabling this niche to thrive even when the broader economy creates uncertainty. Evidence of this strength is clear; in the Interim Results for the First Half of 2024 released in August 2024, The LEGO Group reported a 14% rise in consumer sales, significantly exceeding the flat or negative trends seen in the general toy sector. Similarly, the Australian Toy Association noted in 2024 that building sets were the top-gaining category in Australia, achieving a 13% year-to-date value increase.

A second major driver is the integration of Smart Technology and AI-Enabled Learning Tools, which offer personalized experiences adapted to specific learning speeds. Contemporary educational toys are increasingly featuring voice recognition and adaptive software, effectively merging physical play with digital educational standards. This fusion appeals to tech-savvy parents looking for measurable developmental progress. The commercial success of this approach is highlighted by VTech Holdings Limited; in their November 2024 '2024/2025 Interim Results', the company announced a 7.4% revenue increase for Electronic Learning Products in North America, spurred by the popularity of interactive hardware. As advanced processors become standard in early learning devices, the boundary between traditional toys and educational electronics is becoming increasingly indistinct.

Market Challenges

A primary obstacle to revenue stability in the global educational toys sector is the rampant distribution of unregulated and non-compliant merchandise via online platforms. This flood of substandard goods establishes an unfair competitive environment, where legitimate manufacturers must bear the high costs of rigorous physical and cognitive safety testing, while unregulated sellers ignore these compliance costs to offer lower prices. As a result, established companies face reduced profit margins and market share, significantly limiting their financial ability to fund the research and development necessary for creating innovative new educational products.

Additionally, the widespread presence of dangerous counterfeit items undermines the essential consumer trust required for market growth. When parents or caregivers encounter unsafe or defective products, their hesitation often extends to the entire category, suppressing the general demand for educational toys. The scale of this issue is substantial; a 2025 study by The Toy Association regarding toys bought from major e-commerce sites found that 89% of the tested items did not adhere to mandatory labeling and safety standards. This prevalence of non-compliant products forces the industry to shift valuable resources toward brand protection efforts rather than focusing on market expansion.

Market Trends

The transition toward bio-based and recycled sustainable materials is fundamentally altering manufacturing strategies as leading companies move away from fossil-fuel-based plastics to achieve environmental targets. This shift is defined by the rapid uptake of plant-derived polymers and mass-balance principles, enabling manufacturers to lower their carbon emissions while maintaining product strength. Confirming this industry-wide pivot, The LEGO Group stated in its August 2024 'Interim Results for the First Half of 2024' that 30% of all resin acquired in the first half of the year was certified mass balance, equating to approximately 22% of material coming from recycled and renewable sources.

Concurrently, there is a rising emphasis on Social and Emotional Learning (SEL) tools, stimulating demand for toys that cultivate emotional intelligence and psychological resilience alongside standard academic capabilities. Caregivers are increasingly favoring products that nurture relationship skills and self-awareness, treating playtime as vital for a child's holistic health rather than mere amusement. This consumer priority was highlighted by The Toy Association in October 2024; a survey of 1,000 U.S. parents concerning holiday purchases found that 56% ranked the support of social, emotional, and mental health as a large or top factor when choosing toys for their children.

Key Players Profiled in the Educational Toys Market

• Zephyr Toymakers Pvt. Ltd.
• Thames & Kosmos, LLC.
• Clementoni S.p.a.
• Lego Group
• Ravensburger AG
• Goliath B.V.
• Hasbro, Inc.
• Sphero, Inc.
• VTech Holdings Limited
• Tomy Company, Ltd.

Report Scope

In this report, the Global Educational Toys Market has been segmented into the following categories:

Educational Toys Market, by Product:

• Building Sets
• Games & Puzzles
• Sports & Outdoor Toys
• Others

Educational Toys Market, by Age Group:

• 5 years
• 5 to 10 years
• Above 10 years

Educational Toys Market, by Sales Channel:

• Specialty Stores
• Online
• Hypermarkets/Supermarkets
• Others

Educational Toys Market, by Region:

• North America
• Europe
• Asia-Pacific
• South America
• Middle East & Africa

Competitive Landscape

Company Profiles: Detailed analysis of the major companies present in the Global Educational Toys Market.

Available Customization

The analyst offers customization according to your specific needs. The following customization options are available for the report:

• Detailed analysis and profiling of additional market players (up to five).

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