Educational Toys Market Size & Share Analysis - Growth Trends And Forecast (2025 - 2030)

Global Educational Toys Market Trends and Insights

Parental awareness of early childhood development

Global educational toy sales are surging, driven by heightened parental awareness of early childhood development. Parents increasingly invest in play activities that nurture cognitive, language, social, and motor skills. Governments and educational bodies emphasize toy-based learning in preschool curricula, such as the U.S. Preschool Development Grants and China's Anji Play curriculum. Industry insights reveal that 65% of urban parents in North America and Europe now prioritize educational toys, especially those enhancing problem-solving and cognitive skills. In 2024, Lovevery expanded its Montessori-inspired play-kit subscription into new markets like Singapore, while smart toys with AR/AI capabilities gained traction. By 2025, Mattel and VTech introduced new developmental products, including interactive toys and learning desks, emphasizing early learning milestones. This convergence of parental awareness, government support, and industry innovation highlights the growing importance of educational toys in early childhood development.

Integration of technology in toys

Advanced technologies such as AI, AR/VR, voice recognition, and enhanced connectivity are revolutionizing educational toys, turning them into interactive and personalized learning instruments. These smart toys have transitioned from mere playthings to dynamic companions, adapting to individual learning paces, facilitating multilingual interactions, and providing instant feedback, fueling the market's expansion. Reflecting this trend, industry leaders are pushing the boundaries of innovation. In February 2024, FoloToy and Yomiplanet unveiled “Frank Murphy”, an AI-driven multilingual companion fluent in six languages. In May 2024, VTech introduced the Kidizoom Smart Tablet, merging AR with adaptive learning for young learners. Such developments underscore a significant industry evolution, with major players like LEGO, Mattel, Hasbro, Spin Master, and VTech/LeapFrog integrating digital interfaces, coding robotics, and app features into their educational offerings, all to remain competitive and cater to parents' desires for tech-savvy learning solutions.

Rising popularity of STEM-focused toys

STEM-focused toys are driving growth in the global educational toys market as parents and educators increasingly value early exposure to science, technology, engineering, and mathematics for fostering critical skills. The Toy Association reported an 8% growth in building sets in 2023, despite an overall dip in U.S. toy sales. Additionally, 93% of parents recognize the developmental benefits of STEM toys, particularly in logical reasoning and spatial awareness. Government initiatives like India’s Atal Tinkering Labs and U.S. federal support for K–12 STEM programs further boost demand. Recent innovations include Wondery’s “Wow in the World” STEM kits and Horizon Group’s Star Wars-themed engineering sets in 2024, while Bambu Lab’s CyberBrick, a 3D-printable electronics kit, gained attention in 2025. The rise of STEM toys reflects growing parental support, institutional backing, and innovative products merging learning with hands-on experiences.

Emphasis on play-based and experiential learning

The global educational toys market is growing as play-based learning gains prominence. Governments and organizations are emphasizing play as a tool for literacy, numeracy, and socio-emotional skills. For example, Australia allocated AUD 2.3 million in 2024 to Toy Libraries Australia, with 2025 grants focusing on sensory-friendly programs for children with disabilities. Industry bodies like The Toy Association are endorsing STEAM and play-based toys, with their 2024 STEAM Accredited Toy List featuring 25 educational products promoting hands-on learning. In response, companies like Flintobox launched STEAM activity subscription boxes, while Learning Resources introduced nature-themed sets made from recycled plastic. By 2025, screen-free coding toys, such as block-based robots, gained traction, fostering computational thinking through physical interaction. These developments highlight the growing alignment between policymakers and toymakers in promoting experiential play, driving market growth.

Proliferation of counterfeit and unbranded products

Counterfeit and unbranded educational toys are hindering growth in the global market by eroding consumer trust, diverting revenue, and posing safety risks. In the U.S., the Toy Association supports stronger anti-counterfeit laws, backing initiatives like the SHOP SAFE Act and launching “National Anti-Counterfeiting Month” in July 2024. Customs authorities have also seized millions of counterfeit toys, with “Operation Holiday Hoax” intercepting over 155,000 unsafe educational toys. In the EU, nearly 80% of online toy purchases failed safety tests, prompting stricter Toy Safety Regulations, including digital product passports and enhanced chemical limits. To combat counterfeits, companies like LEGO and VTech emphasized certification and traceability in 2024, using verified CE marks and QR-enabled safety documentation. By 2025, manufacturers adopted digital product passports and blockchain tracking, while online marketplaces tightened seller verification. These efforts are driving demand for verified educational toys, improving trust, safety, and authenticity in the market.

Parental skepticism and screen-time concerns

As concerns about excessive digital exposure mount, parental skepticism regarding screen time is increasingly challenging the global educational toys market. French medical professionals advocate for zero screen exposure for children under six, highlighting potential risks to language, attention, memory, and social development. Meanwhile, a coalition of schools in the UK is urging parents to significantly curtail screen time to address developmental delays. In the U.S., early care standards, backed by the CDC, suggest almost no screen time for children under two, with limited exposure thereafter, strictly for educational purposes. For instance, Ofcom, the UK's communications regulator, reported in 2024 that 59% of children aged 8 to 11 owned a smartphone. This trend has driven product innovation in 2024 and 2025 towards screen-free, tactile alternatives. Companies like Tonies and Learning Resources debuted audio-centric and sensory-friendly toys in 2024, emphasizing language, emotional, and problem-solving skills. Tonies championed literacy by donating over USD 300K worth of devices, while Learning Resources introduced multisensory STEM tools tailored for neurodivergent learners. By 2025, the momentum has surged: both industry associations and parents are gravitating towards unplugged STEM kits and hands-on manipulatives, steering away from tablet-centric options. 

Segment Analysis

By Product Type: STEM toys drive innovation premium

In 2024, STEM toys are projected to grow at a robust 12.70% CAGR, while Games & Puzzles, despite their slower growth, command a significant 20.50% share of the educational toys market. Games & Puzzles, including board games, jigsaw puzzles, and logic challenges, account for 21–30% of the global educational toys market. Their popularity stems from their ability to foster cognitive skills like critical thinking, motor coordination, and problem-solving across generations. Examples range from Froebel’s wooden blocks to modern options like Magna-Tiles.

STEM toys, featuring robotics, coding kits, and engineering sets, are the fastest-growing segment. Their growth is driven by parental demand for coding and engineering skills, institutional support for STEM education, and digital tool adoption. Innovations in 2024 included LEGO’s Boost kits, Sphero’s screen-free coding tools, and AR-enhanced puzzles. By 2025, offerings like Lego Education’s SPIKE Prime and Merge Cube’s AR puzzles ensured hands-on, curriculum-aligned learning. While Games & Puzzles thrive on accessibility, STEM toys are rapidly growing due to modern educational demands and tech integration.

Note: Segment shares of all individual segments available upon report purchase

By Technology Integration: Smart toys reshape learning paradigms

In 2024, Non-Electronic Traditional Toys dominated the market with a 55.3% share, while Smart Toys featuring AI/IoT will surge at a 12.5% CAGR. Traditional educational toys, like wooden blocks and puzzles, are leading globally due to their developmental benefits and alignment with both parental and institutional preferences. These toys nurture essential skills in early childhood education. Institutions integrate them into curricula, and parents, concerned about screen time, favor these tactile options, fueling the segment's growth.

Conversely, Smart Toys with AI/IoT are the fastest-growing segment, driven by advancements in adaptive learning and a rising consumer appetite for personalized educational tools. Governments are evolving safety and data privacy standards to foster responsible innovation. Schools in North America and Europe are increasingly piloting AI-driven learning tools. Moreover, pioneers in smart toys are investing in over-the-air firmware updates, enhancing retention metrics by refreshing content without hardware changes. While newly enforced EU mental-health criteria for connected toys extend testing periods, they bolster credibility for compliant suppliers. The educational toys market is set to diversify: catering to both eco-conscious buyers and tech-savvy early adopters.

By Age Group: Early years drive premium growth

In 2024, the 5–8 Years age bracket dominated the educational toys market, accounting for 54.90% of total revenue. Yet, the 0–4 Years segment is poised for the swiftest growth, projected at a 13.10% CAGR. This surge is backed by Head Start research, which underscores infants' innate engagement with STEAM exploration. The 5–8 years age group leads the global educational toys market as children transition into structured learning—kindergarten to early elementary school. In 2024, sales targeting this age group constituted approximately 55–60% of the market. Reinforcing this trend, global governments and educational entities are embedding hands-on learning tools into early curricula. For instance, the U.S. Department of Education backs preschool programs with manipulatives and educational kits. Similarly, EU directives advocate for literacy and logic toys in classrooms. Industry bodies, like The Toy Association, echo this sentiment, noting a preference among parents and educators for developmental toys during this pivotal phase. Highlighting the market's magnitude, U.S. retail toy sales in 2024 reached an estimated USD 28 billion, as reported by The Toy Association^{[1]Toy Association, "Annual U.S. Sales Data", www.toyassociation.org}.

Conversely, the 0–4 years segment is witnessing the fastest expansion. Reports indicate a notable uptick in screen-free, multisensory products tailored for infants and toddlers, with North America and Europe leading the charge. Government initiatives, such as India's early childhood STEAM grants and Australia's childcare toy subsidies, are bolstering the integration of these tools in play-based environments. Responding to this demand, 2024 saw the launch of innovative infant products—like Montessori-inspired kits emphasizing texture and sound. Building on this momentum, 2025 is set to unveil subscription-based sensory toy sets and eco-friendly soft toys, complete with developmental tracking features, underscoring a blend of safety and sophistication. In essence, the 5–8 years category leads in volume because of structured educational integration at school entry, while the 0–4 years segment is rapidly expanding as caregivers and policymakers increasingly invest in high-quality early learning tools—making it the fastest-growing frontier in educational play.

By Material: Sustainability mandates reshape supply chains

In 2024, conventional plastics account for 61.00% of the revenue, yet recycled and bio-plastics are projected to surge at a 12.42% CAGR. The global educational toys market has traditionally relied on conventional plastics due to their affordability, durability, and ease of manufacturing. These materials dominate mass-produced items like LEGO bricks and STEM construction sets, supported by long-standing supplier contracts and proprietary molds. However, transitioning to alternative materials remains costly and complex. For instance, LEGO announced in 2024 that it would halt its shift to recycled PET bricks due to durability and compatibility concerns, underscoring the dominance of conventional plastics in precision toys.

Meanwhile, bio- and recycled plastics are gaining traction among eco-conscious consumers, particularly in North America and Northern Europe, despite higher costs. Educational institutions are also prioritizing sustainability in procurement. Brands like Dantoy, Hape, and Green Toys are leveraging “eco storytelling” on 2025 product packaging, using QR-linked digital passports to highlight carbon savings and material origins. Government incentives, such as the EU’s eco-design tax credits and California’s proposed plastic tax reform, are further supporting the adoption of sustainable materials, driving growth in this segment.

Note: Segment shares of all individual segments available upon report purchase

By Distribution Channel: Digital transformation accelerates

In 2024, brick-and-mortar supermarkets accounted for 27.00% of global sales, buoyed by impulse purchases and in-store demonstrations. However, online retail is projected to outpace physical stores, growing at an 11.90% CAGR, as parents increasingly turn to video reviews and peer ratings for guidance. Supermarkets and hypermarkets dominate the educational toys market due to their wide reach, high foot traffic, and strong distribution networks. Retail giants like Walmart, Tesco, Carrefour, and Target offer diverse educational toys alongside essentials, making them a preferred choice for families. Their in-store promotions and seasonal discounts drive bulk purchases, especially during back-to-school and holiday seasons. For instance, Walmart partnered with LeapFrog and VTech in 2024 to launch exclusive STEM bundles, while Carrefour introduced eco-friendly toy lines in Europe, aligning with sustainability mandates. The global expansion of supermarkets further supports market growth, with J Sainsbury operating 1,454 stores in the UK as of March 2025.

Online retail is the fastest-growing segment, fueled by e-commerce growth, home delivery convenience, and demand for niche educational products. Platforms like Amazon, Flipkart, and JD.com see rising sales for the 0–8 age group, driven by tech-savvy parents relying on reviews and tailored searches. In 2025, brands like LEGO and Osmo launched direct-to-consumer platforms featuring subscription kits, learning progress tracking, and AR previews, enhancing the digital shopping experience and driving growth.

Geography Analysis

In 2024, Europe accounted for 38.83% of global revenues, while the Asia-Pacific region is projected to grow at a 12.10% CAGR through 2030, buoyed by favorable demographics and government-backed STEM initiatives. Europe leads the global educational toys market due to high disposable income, a focus on early education, and strict quality regulations. Countries like Germany and the U.K. invest heavily in early childhood programs and sustainability, driving demand for premium, eco-friendly toys. In 2024–25, Lithuania's Liledu expanded its subscription service to the U.K., while Just Play and Playmobil launched AR/AI-enhanced STEAM toys in Europe.

Asia-Pacific is the fastest-growing market, driven by a rising middle class, urbanization, and a focus on STEM education. China and India are integrating educational toys into their education systems, supported by government initiatives like China's CNY 150 billion investment in early education and India's production-linked incentive scheme. In 2024–25, India saw thematic STEAM kits like Toycra's puzzles, while China's Bloks Group capitalized on the "kidult" trend with pop-culture educational toys.

North America shows steady growth, supported by high household incomes, federal investments, and a strong retail network. The U.S. remains a key player, benefiting from traditional and online retail. In 2024–25, products like VTech's AI-enabled tablets and Montessori-style subscription kits boosted market performance.