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Key toy trends and strategic focus areas: Insights from the Nuremberg Toy Fair 2025

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While the global toy market has stagnated and sales even declined slightly in 2024, the Nuremberg Toy Fair 2025 provides a positive outlook for the toy industry. We observe five trends that toy manufacturers and retailers can leverage to secure future growth.

From reaching new age groups to expanding product categories and offering technology driven new play technologies, the future of toys is being redefined. In this article, we explore the top trends shaping the industry and provide actionable strategies for brands to remain competitive and grow in 2025.

Kidults: Toys aren’t just for kids anymore

How adult consumers are reshaping the toy market

The kidult segment – adults purchasing toys for themselves – has firmly established itself as a cornerstone of the toy industry. The segment is the fastest growing age group in toys and already accounts for nearly 30% of the global toy market revenue, with the share expected to grow further. Key drivers behind this trend include nostalgia, stress relief, and the desire for collectibles.

Licensed franchises such as Star Wars and Marvel remain central to this market. However, the focus has increasingly shifted toward premium, limited-edition releases. Toy brands have embraced this trend by developing product lines specifically targeted at adult consumers. For example, Mattel has introduced a nostalgic limited-edition 80th Ruby Anniversary collection, while Schleich plans to launch its first ever kidults range in 2025. 

What's next?

As the kidult market continues to expand, we expect to see more sophisticated and intricate toys designed for adult collectors. To capitalize on this growing segment, toy manufacturers must develop a deep understanding of their preferences and effectively integrate them into their go-to-market strategies.

A key factor in unlocking this potential is a thorough assessment of their willingness to pay, enabling brands to fully leverage their higher purchasing power and demand for premium products. Furthermore, the shopper journey differs significantly from that of buying toys for kids, with a strong emphasis on online shopping, as most brick-and-mortar stores primarily cater to children. This shift presents a valuable opportunity for physical retailers to adapt and attract this rapidly expanding audience.

Licenses: Expanding to anime and sports

Navigate the evolving licensing landshape

Licensing continues to be a dominant force in the toy industry, with licensed products now accounting for a record 32% of the global market. While major movie franchises like Star Wars, Harry Potter, and Marvel continue to drive sales, we are witnessing a diversification in licensing partnerships, particularly in sports and anime.

Sports licensing is gaining momentum, exemplified by high-profile collaborations such as Formula 1 with LEGO and Mattel’s Hot Wheels, as well as major football clubs extending their presence in the toy sector. Meanwhile, the global popularity of anime and manga franchises, including Naruto, Beyblade, Yu-Gi-Oh!, and Dragon Ball, is reshaping toy trends. This surge is fueled by streaming services and a dedicated fan base spanning all age groups, further solidifying anime’s influence on the industry.

What’s next?

The growing integration of pop culture, sports, and anime in toy licensing suggests further expansion beyond traditional licensing categories. The increasing demand for culturally diverse and globally recognized franchises will likely shape the next wave of licensed toy innovations.

From a commercial perspective, toy brands need to carefully select and evaluate collaborations regarding the fit to the consumer audience and the underlying monetization potential. While licenses have the potential to attract new loyal audiences, not all of them justify a price mark-up that covers the royalty costs. 

Competition: New entrants on the playground

New players enter high-growing product categories

Toy manufacturers are entering high-growth product segments, such as building sets. LEGO is already facing challenges from a series of smaller competitors, including Bluebrixx, Cobi, and Brixo. This year competition will further intensify with Mattel announcing its new Mattel Brick Shop brand and Jazwares announcing its new BLDR construction brand.

In the toddler category, Tonies is encountering new competition from the Italian toy brand Faba. Interestingly, we also see new licensing partners looking to establish a foothold in the toy industry, as evidenced by Epic Story Media's announcement of their new toy division.

What's next?

These developments are forcing toy companies to reevaluate their strategies, focusing on innovation and adaptability to maintain market share in an increasingly competitive landscape.

Sustainability: From niche to business imperative

Eco-friendly materials and packaging take center stage

Sustainability is no longer just a trend in the toy industry. It is becoming a fundamental expectation. With growing consumer awareness of environmental impact, manufacturers are shifting towards eco-friendly materials, recycled plastics, and sustainable production processes. Companies like Mattel, LEGO, and Hape are leading the way by pledging to use recyclable or bio-based materials and Schmidt Spiele just announced with Natpax a whole brand dedicated to sustainable puzzles at this year’s toy fair.

Despite these efforts, the industry still faces challenges, particularly in reducing plastic waste, as most toys contain non-recyclable material blends. However, innovative approaches such as upcycled toy designs and plastic-free packaging are gaining momentum.

What’s next?

Looking ahead, sustainability will shape the future of toy production by developing alternatives to traditional plastics, such as plant-based materials, biodegradable components, and sustainably sourced wood. Furthermore, more brands will explore toy take-back programs, rental models, and second-life initiatives to reduce waste.

In the long run, stricter environmental regulations and increasing demand from eco-conscious parents will push manufacturers toward greener supply chains and transparent sustainability commitments. Brands that transparently communicate their environmental impact and offer repairable, modular toys will gain a competitive edge.

Screen-free tech: Bridging play and technology

Merging physical play with digital experiences

While screen-based toys have their place, there's a growing trend towards tech toys that don't rely on screens. These toys incorporate technologies like augmented reality, voice recognition, and robotics to create immersive play experiences without the need for a display.

For instance, SayKid has introduced the ToyBot, which cleverly combines Alexa integration with physical play actions, creating a more interactive and engaging experience for children. Another example of this trend is QubsQubitunes, which combines a sound box with interactive play elements.

What's next?

We can expect to see more innovative toys that blend the physical and digital worlds seamlessly. This could include AI-powered stuffed animals that respond to voice commands or building sets that come to life through augmented reality.

Furthermore, AI will evolve from a buzzword to a core component of children’s play experience, with brands that provide clear, tangible AI use cases and respect parents’ concerns around data privacy leading the market. 

Strategic focus areas for 2025

Portfolio rationalization and premiumization

Simplify the product portfolio through customer-centric portfolio rationalization, focusing on high-demand, high-margin items. While reducing complexity, ensure that the product portfolio covers all relevant target audiences, phasing out less effective offerings.

Pricing strategy

Balance product features with pricing to achieve the optimal value equation. Understand consumer willingness to pay and align pricing with perceived benefits to maintain competitiveness and profitability.

Go-to-market strategy

Design go-to-market strategies that not only reaches your target audience but strongly resonates with them. Start by identifying market opportunities and prioritizing the target consumer audience to develop compelling value propositions that align with your marketing, pricing, sales, and channel strategy.

How Simon-Kucher drives success for toy manufacturers

At Simon-Kucher, we offer toy companies tailored commercial and growth strategies to maximize revenue and maintain a competitive edge. Our revenue growth management approaches foster sustainable and profitable growth, supported by innovative price and revenue models (e.g., dynamic pricing).

Consumer-centric solutions are at the core of our approach. We optimize every lever of your commercial strategy, sales, pricing, and marketing. Most importantly, we don’t just deliver the strategy and approaches, we also work closely with your organization to make it really stick.

Ready to unlock your growth potential? Contact us to get started.

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