The German toy industry has recovered from the pandemic and is registering impressive revenues. The market is expected to reach $6.76 billion by the end of 2028 with a compound annual growth rate (CAGR) of 3.51%. Factors behind this growth include the expansion of e-commerce sales and Germany’s status as the second-largest exporter of toys globally. Its exports totaled $4.6 billion in 2020 alone, which is quite the feat considering the disruption to distribution channels during the multiple lockdowns. Key to the success of the toy sector is its ability to cater to evolving customer preferences and we know how quickly children can change their mind. To meet these changing demands, the German toy industry is investing significantly in market analysis and R&D to continuously innovate. The role of toys extends beyond mere entertainment as play has a crucial role in child development by enhancing cognition, imagination, creativity and problem-solving skills. With a total population of 10.35 million children under the age of 15 in 2021, Germany’s toy industry is poised for further expansion in the coming years. It’s also worth noting that parents are placing a lot more value in green toys as consumers become more invested in reducing waste. Alongside the favoring of green toys, traditional toys, video games and building toys lead in terms of sales. However, at the top of the food chain stands mobile-based gaming. Child safety remains a top priority for the industry especially when it comes to developing new products. Germany has introduced new legislation that presents business with new burdens that challenges growth. These include increased testing and administrative costs, which are threatening companies, particularly small and medium-sized enterprises (SMEs). Nevertheless, the sector is dedicated to integrating safety measures into every stage of the product development process from design and development to testing, production and delivery.