Pune, India – August 2025 – The global educational toys market size was valued at USD 23.06 billion in 2022 and is forecasted to reach USD 45.63 billion by 2031, growing at a CAGR of 7.91% from 2023 to 2031, as per a recent report by Straits Research. The growing popularity of educational toys for kids, especially in the 3–8 year age group, along with innovation in AI-based smart toys and increasing parental emphasis on learning through play, are key market growth drivers.

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What is the market size of educational toys?

As per the report, the educational toys market was valued at USD 23.06 billion in 2022 and is expected to reach USD 45.63 billion by 2031, showing steady growth due to increasing awareness of play-based learning and rising disposable incomes in developing countries.

Is educational toy a good business?

Yes, the global shift toward educational learning toys makes this a highly lucrative sector. With parents seeking alternatives to passive screen time, demand for educational toys for toddlers, preschoolers, and children aged 1 to 5 years is accelerating. Segments such as STEM kits, eco-friendly wooden toys, and interactive smart toys are particularly promising.

How big is the toy industry market?

The global toy industry exceeded USD 100 billion in 2024, with educational toys, wooden educational toys, and smart learning products being the fastest-growing segments. These are favored not only by parents but also by schools and educational institutions.

How big is the STEM kit market?

The STEM kit market, a rapidly growing sub-segment, is expected to cross USD 5 billion by 2031. These hands-on kits help children develop coding, scientific, and problem-solving skills, contributing significantly to the demand for educational toys for 8–12 years and beyond.

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Distribution & Sales Channels

  • Offline Retail remains dominant, especially in emerging economies where hands-on product trials are important.
  • Online Sales are rapidly rising due to convenience and the availability of a broader range of kids toys, including niche and imported educational toddler toys.

Top Product Categories & Trends

  • Academic and STEM Toys: High demand among parents focused on early science and math learning.
  • Motor Skills Toys: Popular among infants and toddlers for enhancing coordination.
  • Indoor Educational Toys: Dominant in homes with young children (0-5 years).
  • Offline Stores: Lead in sales due to physical product experience and impulse buying.
  • Educational Toys for 3–8 Year Olds: Highest growth segment, especially for language and emotional intelligence.

Regional Highlights

  • North America leads the market with a tech-savvy, education-focused population and early adoption of learning toys.
  • Asia-Pacific is the fastest-growing region, driven by rising education awareness and mass production hubs in China and India.
  • Europe is leaning toward wooden educational toys and eco-conscious designs.
  • LATAM and MEA are emerging markets with untapped potential for educational toys for children.

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Leading Players in the Market

  • LEGO
  • Mattel
  • Hasbro
  • LeapFrog Enterprises
  • VTech Electronics
  • Learning Resources
  • Funskool
  • WowWee Group Limited
  • Digital Dream Labs

Educational Toys: A Booming Industry for Kids and Parents Alike

Educational toys—also referred to as learning toys, educational baby toys, or instructional toys—are specifically designed to foster children's cognitive, emotional, and motor skills development through interactive play. These toys come in many forms, including:

  • Educational toys for toddlers
  • Toys for 1 year old and 2 year old educational toys
  • Educational toys for 3 year olds, 4-5 year olds, and preschoolers
  • Wooden educational toys and wooden toys that promote tactile learning
  • STEM-based kits for enhancing logical thinking and creativity
  • Best educational toys that combine fun with functionality

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