Eco-Friendly Toys Market Opportunity, Growth Drivers, Industry Trend Analysis, and Forecast 2025 – 2034

The Global Eco-Friendly Toys Market is projected to reach USD 1.2 billion in 2024, with a strong growth trajectory expected to continue at a CAGR of 12.5% from 2025 to 2034. This rapid expansion is being fueled by a growing awareness of sustainability among consumers, eco-conscious parenting trends, supportive regulatory policies, and innovations in sustainable materials. As more consumers shift toward environmentally responsible products, demand for toys made from sustainable, recyclable, and biodegradable materials is on the rise, moving away from plastic and non-biodegradable options. Parents are increasingly focused on instilling eco-friendly values in their children, further driving the demand for toys that align with these principles.

In terms of product types, the eco-friendly toys market is diversified into building sets, action figures, games and puzzles, sports and outdoor toys, and others. Building sets, which generated USD 300 million in revenue in 2024, are expected to grow at a CAGR of 13.1% through 2034. These toys stand out for their sustainability, often incorporating materials such as wood, bamboo, and recycled plastics as replacements for traditional, less eco-friendly options. Their modular, reusable designs encourage creativity and reduce waste, promoting long-term use and fostering sustainable consumption practices.

The market is also segmented by materials, including wood, bamboo, paper and cardboard, wool, cotton, and others. Wooden toys held the largest market share at 39% in 2024 and are anticipated to grow at a CAGR of 12.9% from 2025 to 2034. The industry is increasingly focused on using sustainably sourced wood, often certified by environmental organizations that ensure low environmental impact. These toys are frequently finished with non-toxic coatings, making them a safe, chemical-free option for infants and toddlers. Their durability and eco-friendly qualities make wooden toys a popular choice among parents looking for safer, more sustainable alternatives.

In North America, the eco-friendly toys market is set to generate USD 300 million in 2024. The U.S. market, in particular, is projected to grow at a CAGR of 12.7% through 2034, driven by heightened environmental awareness, stricter regulations, and the growing popularity of STEM-based toys. The shift toward sustainable materials and eco-conscious designs is driving broader adoption of green products. Parental preference for environmentally responsible toys, coupled with advancements in manufacturing technologies, is further propelling the growth of the market.