The toy industry is poised for significant transformation in 2025, driven by technological advancements, shifting consumer preferences, and a growing emphasis on sustainability. For B2B buyers—whether manufacturers, wholesalers, or retailers—staying ahead of these trends is critical to maintaining a competitive edge in a dynamic global market valued at over USD 120 billion in 2025. This article explores the top toy trends shaping the industry and provides actionable insights for business professionals navigating the evolving landscape.
1. The Rise of AI-Powered and Interactive Toys
Artificial Intelligence (AI) is revolutionizing the toy industry by creating interactive, adaptive play experiences that captivate both children and adults. In 2025, AI-powered toys are expected to dominate, accounting for approximately 75% of the market, a dramatic increase from just 5% in 2000. These toys, such as learning robots like Miko 3 and Cozmo, adjust to a child’s learning pace, offering personalized educational experiences. For instance, AI toys can hold conversations, adapt to language levels, and even detect emotional cues, fostering cognitive and social development.
Augmented Reality (AR) and Virtual Reality (VR) are also gaining traction, with the AR toy market projected to reach USD 3.71 billion by 2025, growing at a 14.5% CAGR. Companies like LEGO are leading with products like Hidden Side, which blend physical play with digital immersion. For B2B buyers, sourcing AI and AR/VR-integrated toys offers opportunities to tap into the growing demand for “phygital” play—products that bridge physical and digital worlds. Retailers and distributors should prioritize partnerships with manufacturers investing in these technologies to meet consumer expectations for innovative, tech-driven play.
2. Sustainability as a Core Expectation
Sustainability is no longer a niche trend but a fundamental expectation in the toy industry. Millennial and Gen Z parents, who dominate the purchasing demographic, are driving demand for eco-friendly toys made from biodegradable, toxin-free, or recycled materials. The global eco-friendly toy market is expected to grow from USD 25.79 billion in 2022 to USD 60.19 billion by 2031.
Leading brands like Mattel, LEGO, and VTech are responding with initiatives such as using reclaimed plastics and recyclable packaging. For example, VTech’s LeapFrog Nest & Count Turtle Tower is made from recycled materials, and over 96% of its packaging is recyclable. Additionally, toy subscription models, like UK-based Whirli, are gaining popularity by reducing waste through toy rentals, appealing to environmentally conscious consumers.
For B2B buyers, sourcing sustainable toys is a strategic move to align with consumer values and comply with stricter environmental regulations. Wholesalers should seek suppliers with transparent supply chains and certifications for eco-friendly materials. Retailers can differentiate themselves by highlighting sustainable product lines in their marketing, appealing to eco-conscious parents and boosting brand loyalty.
3. The Kidult Market: A Growing Opportunity
The “kidult” market—adults purchasing toys for themselves—is one of the fastest-growing segments, accounting for nearly 30% of global toy market revenue. Driven by nostalgia, stress relief, and collectible appeal, kidults are reshaping the industry. In the U.S., adults contributed USD 6.7 billion to toy sales in 2023, a trend that continues to expand globally.
Premium and limited-edition products, such as LEGO Botanicals or Mattel’s 80th Ruby Anniversary collection, cater to this demographic’s willingness to pay higher prices. Licensed franchises like Star Wars, Marvel, and anime series (e.g., Naruto, Dragon Ball) are particularly popular, with licensed toys comprising 32% of the market in 2024.
B2B buyers can capitalize on this trend by sourcing high-margin, collectible toys targeting adults. Distributors should focus on partnerships with brands offering nostalgic or premium lines, while retailers can create dedicated “kidult” sections in stores or online platforms to attract this lucrative audience. Marketing strategies should emphasize the emotional and collectible value of these products to drive sales.
4. Educational and STEM Toys in High Demand
Parents and educators are increasingly prioritizing toys that combine fun with learning, particularly those focused on STEM (Science, Technology, Engineering, and Mathematics). The educational toy market is projected to grow from USD 61.7 billion in 2025 to USD 152.8 billion by 2035, at a 9.44% CAGR. Coding kits, robotics, and science toys are particularly popular, fostering skills like problem-solving and creativity.
Brands like HABA and Playmobil are introducing STEM-focused products that appeal to parents seeking developmental benefits. In Germany, a key European market, educational toys dominate due to a cultural emphasis on early learning.
For B2B buyers, stocking STEM toys is a low-risk, high-reward strategy, given their consistent demand. Wholesalers should prioritize suppliers offering innovative, curriculum-aligned products, while retailers can partner with schools or educational programs to promote these toys, enhancing credibility and sales.
5. Licensed Toys and Pop Culture Influence
Licensed toys tied to movies, TV shows, and streaming platforms remain a dominant force, accounting for 34% of the global toy market in 2024. Blockbuster films like Barbie and Teenage Mutant Ninja Turtles have driven sales, and 2025 promises a stronger lineup of “toyetic” movies to fuel growth. Pokémon continues to lead as the top-selling toy property, followed by Barbie, Marvel Universe, and Star Wars.
Sports and anime licensing are also emerging as key drivers. Collaborations like LEGO’s Formula 1 sets or Mattel’s Hot Wheels with football clubs are gaining momentum. Anime franchises, fueled by streaming services, are attracting multi-generational fans, boosting demand for related toys.
B2B buyers should monitor upcoming entertainment releases to anticipate demand for licensed products. Distributors can secure exclusive deals with licensors to gain a competitive advantage, while retailers should leverage pop culture trends in marketing campaigns to drive impulse purchases.
6. E-Commerce and Omnichannel Strategies
The rise of e-commerce has transformed toy retail, with online sales accounting for over 20% of U.S. retail sales in 2024. Platforms like Alibaba, JD.com, and Tmall dominate in China, while Amazon and direct-to-consumer (DTC) models thrive globally.
B2B buyers must adapt to this digital shift by partnering with suppliers offering robust e-commerce capabilities, such as real-time inventory data and fast shipping. Retailers should invest in omnichannel strategies, combining online and in-store experiences, to meet consumer expectations for convenience and personalization. For example, LEGO’s AR-enhanced store displays create immersive shopping experiences that drive engagement.
Strategic Implications for B2B Buyers
To thrive in the 2025 toy market, B2B buyers must adopt a proactive, data-driven approach. Here are key strategies:
- Source Innovate Products: Prioritize suppliers investing in AI, AR/VR, and sustainable materials to align with consumer trends.
- Target Niche Segments: Focus on high-margin opportunities like kidult collectibles and STEM toys to diversify revenue streams.
- Leverage Licensing: Stay informed about upcoming entertainment releases to stock high-demand licensed products.
- Embrace Digital Transformation: Partner with e-commerce-ready suppliers and invest in omnichannel retail strategies.
- Build Transparent Supply Chains: Ensure suppliers meet sustainability standards to comply with regulations and consumer expectations.
Conclusion
The toy industry in 2025 offers immense opportunities for B2B buyers who can navigate its evolving trends. From AI-powered toys and sustainable designs to the kidult market and licensed products, the market is ripe for innovation and growth. By staying informed and aligning sourcing and retail strategies with consumer demands, businesses can position themselves for success in this dynamic industry. For more insights and sourcing opportunities, visit SourcingGuides.com.
