Toys and games are among the most traded products in the world, reflecting their universal appeal and growing market demand. In 2022, toys, games, and sports items ranked as the 27th most traded product globally, with a total trade value of $166 billion USD. This demand continued into 2023, with the top exporting countries being China, the United States, Germany, Czechia, and the Netherlands.
Sourcing these products successfully requires understanding the key factors that influence quality, staying on top of industry trends, and knowing where to find the best suppliers. This guide will walk you through each step, backed by insights into the global toy market.
Key Factors to Consider When Sourcing
Product Quality and Safety
High-quality toys that meet global safety standards are essential for maintaining customer trust and satisfaction. When sourcing, prioritize suppliers who comply with certifications like:
ASTM F963 (United States)
EN71 (European Union)
CCC (China)
Pricing and Cost Efficiency
Price matters, but so does value. While you might find lower-cost options, balancing affordability with quality ensures long-term success.
Delivery Times and Reliability
Delays can disrupt your supply chain, especially during peak seasons like holidays. Partner with suppliers who provide clear timelines and have a history of meeting deadlines. Look for options closer to your target market for faster shipping.
Sustainability Practices
Consumers increasingly value eco-friendly toys. Sourcing from suppliers who use sustainable materials—such as recycled plastics or organic fabrics—can align your brand with market trends.
Trade Agreements and Tariffs
Understanding trade policies can significantly impact your costs. For example, sourcing from China might involve tariffs due to the US-China trade war, whereas sourcing from Vietnam or Mexico may benefit from favorable trade agreements like the CPTPP or USMCA.
Key Trends in the Toy Industry
The toy industry is dynamic, with consumer preferences and technological advancements driving innovation.
Coding Toys: These introduce kids to programming through interactive play, combining fun and learning.
Robotics Kits: Robotics kits allow children to build and program robots, teaching them engineering concepts and teamwork. They’re often tiered by difficulty to suit different age groups.
Tech-Integrated Toys
Technology is transforming the way kids play, with smart and interactive toys leading the charge. Modern parents looking for innovative and interactive ways to foster creativity and problem-solving skills in their children.
Augmented Reality (AR) Toys: AR toys blend the physical and digital worlds, offering immersive experiences. For example, AR coloring books and puzzles allow children to see their creations come to life through a tablet or smartphone, making learning subjects like science and history more engaging.
Diversity and Inclusion
The demand for toys that reflect diversity in cultures, abilities, and body types continues to grow. For instance, Mattel’s Barbie now includes dolls of various ethnicities, body shapes, and abilities, helping children feel represented and included.
Diversity-focused toys resonate deeply with today’s values, offering children a broader view of the world and encouraging acceptance.
Nostalgic and Retro Toys
Retro toys are making a comeback as parents look to share their childhood favorites with the next generation. Classics like Rubik’s Cube, Polaroid cameras, and vintage-style board games are regaining popularity, blending nostalgia with timeless appeal.
Countries to Source From
China
China dominates the global toy manufacturing market, producing over 70% of all toys worldwide. Known for its extensive production capabilities and cost-efficiency, China is the go-to choice for large-scale toy production. With advanced manufacturing infrastructure and vertical integration, the country can produce a wide range of toys, from low-cost plastic items to sophisticated tech-enabled products. Despite challenges like the US-China trade war and increasing labor costs, China remains the top exporter due to its scalability and variety.
Top Export Markets: United States, Japan, United Kingdom, Germany, Canada
Specialties: Plastic toys, action figures, electronic toys, and mass-market items
Trade Agreements: Member of RCEP, offering favorable terms across the Asia-Pacific region
Pros:
Extensive manufacturing capacity with the ability to handle bulk orders
Vertical integration streamlining production processes
Wide variety of suppliers catering to different price points and quality levels
Challenges:
Tariffs due to the US-China trade war
Rising labor costs
Concerns over potential quality inconsistencies in low-cost products
United States
Known for producing high-quality and safe products, the U.S. is also a hub for advanced toy design and development. Many companies that manufacture abroad still rely on U.S. facilities for prototyping, quality control, and small-batch production. Sourcing from the U.S. aligns well with the “Made in America” branding, appealing to customers seeking locally made products.
Top Export Markets: Canada, Mexico, European Union
Specialties: High-quality toys, innovative designs, and premium “Made in America” branding
Trade Agreements: USMCA allows tariff-free trade with Canada and Mexico
Pros:
Superior product quality and stringent safety standards
Faster shipping times for North American businesses
“Made in America” appeal for marketing and branding
Challenges:
High labor and manufacturing costs
Limited scalability for mass production
Germany
Germany is renowned for its precision craftsmanship and commitment to quality, making it a preferred choice for premium toy manufacturers. Known for high-quality wooden toys and innovative designs, German suppliers excel in meeting European safety and environmental standards. While production costs are higher than in other countries, German toys often command a premium price due to their durability and superior build quality.
Top Export Markets: Spain, France, Austria, Poland, and Switzerland.
Specialties: Wooden toys, educational products, and board games
Trade Agreements: EU trade agreements with major global markets
Pros:
Superior craftsmanship and quality standards
Strong focus on sustainability and eco-friendly practices
Well-established reputation for premium products
Challenges:
High production and labor costs
Limited scalability for low-cost or mass-market toys
Czech Republic
Czech Republic has a long history of toy manufacturing, particularly in the production of wooden toys and board games. The country’s central location in Europe makes it a strategic choice for businesses targeting the EU market. Czech manufacturers are known for their focus on craftsmanship, often catering to niche markets that prioritize quality and sustainability over volume.
Top Export Markets: South Korea, Russia, Japan, Israel and the United States.
Specialties: Wooden toys, board games, and handcrafted items
Trade Agreements: EU trade agreements allow seamless trade within the European Union
Pros:
Central location in Europe for efficient logistics
Skilled labor force with a focus on craftsmanship
Competitive pricing compared to Western Europe
Challenges:
Limited diversity in product offerings
Smaller-scale production capacity
Netherlands
The Netherlands serves as a key logistics and distribution hub for the European toy market. While local manufacturing is limited, the country excels in facilitating the flow of toys from other production hubs to consumers across Europe and beyond. The Netherlands’ strategic location and advanced infrastructure make it an attractive choice for businesses looking to streamline their supply chains.
Top Export Markets: Germany, France, United Kingdom, Belgium
Specialties: Logistics and distribution, with a focus on board games and premium toys
Trade Agreements: EU trade agreements enable smooth trade across European markets
Pros:
Strategic location for European market access
Advanced logistics and warehousing infrastructure
Strong partnerships with global toy brands for distribution
Challenges:
Limited local toy manufacturing
Higher costs for distribution services compared to sourcing directly from manufacturing hubs
Conclusion
Sourcing high-quality toys and games involves a strategic approach that balances product quality, cost, and market trends. By aligning your sourcing strategy with these insights, you can navigate the complexities of the global toy market and make informed decisions that will benefit both your bottom line and customer satisfaction.
FAQ
1. Can I source toys from multiple countries?
Yes, sourcing from multiple countries allows you to diversify your product offerings and reduce dependency on any single market. For instance, you could source eco-friendly wooden toys from Germany, STEM toys from the U.S., and mass-market toys from China. However, consider factors like shipping times, tariffs, and trade agreements when sourcing from different regions.
2. What is the impact of sustainability on the toy industry?
Sustainability has become a major trend in the toy industry, with more consumers seeking eco-friendly options. Brands that use recycled materials or sustainable production practices can enhance their reputation and appeal to environmentally-conscious buyers.
3. How can I determine the best country for high-quality toys?
To determine the best country for high-quality toys, it’s essential to consider your product and business needs. Countries like Germany, the U.S., and Japan are known for their high-quality, durable toys that meet rigorous safety and environmental standards, but they often come with a higher price tag. If quality is your top priority, these countries should be your go-to options. On the other hand, if you’re looking for more cost-effective solutions, China and Vietnam offer a wide range of products at lower prices. However, these countries may require more thorough quality checks. Each country has its strengths, so evaluate based on your specific product requirements and business objectives.
Head of Marketing
Judy Chen
Graduating from USC with a background in business and marketing, Judy Chen has spent over a decade working in e-commerce, specializing in sourcing and supplier management. Her experience includes developing strategies to optimize supplier relationships and streamline procurement processes for growing businesses. As SourceReady’s blog writer, Judy leverages her deep understanding of sourcing challenges to create insightful content that helps readers navigate the complexities of global supply chains.
