Right in Europe’s geographic centre is Germany with an area of 357,050 km² and a population of roughly 82.5 million people. The birth rate has risen over the past years to 1.59 children per woman. In light of this baby boom, the Federal Republic is currently experiencing a slight growth in population. Overall, around 10.6 million children under the age of 15 live in Germany.

Steady economic situation

Germany has been experiencing a constant economic upswing. Its GDP totals € 3,263.4 billion (2017) and is predicted to rise further. The retail trade is also very important for Germany. The Federal Republic is the world’s third-largest exporting and importing nation. Its export volume totals US$ 1,250 billion, while US$ 973 billion worth of goods are imported.

A firm labour market and low interest rates entice German citizens to spend more. Also, a further increase in buying power is forecast. The growing birth rate, the solid economy and the high buying power of Germans make the Federal Republic an attractive market for the toy sector.

Toy trends in Germany

Due to the good overall economic situation and the low interest rates in the Federal Republic of Germany, parents and grandparents are likely to spend more on children’s toys. Expenditure for toys totalled € 3,167 million in 2017 and will continue to rise further.

The most lucrative toy segments in Germany include toys for infants and pre-school kids, construction sets as well as games and puzzles. Especially tech toys and traditional toys with electronic features are in demand. Germans greatly value an added benefit and the safety of toys. Quality also plays an important role. Parents trust in brands that they themselves played with when they were children. If parents like a toy, it is more likely that it will be bought. For this reason, children’s movies are frequently made so that they equally appeal to parents who then buy the respective licenced products for their children.

Lucrative target groups for toys

Germans buy three-quarters of their toys from brick-and-mortar retailers. Most children’s toys are purchased by parents and grandparents for children up to the age of 6. The target group of primary school children and teenagers still generates half of retail trade sales. This is because German children can finance their toys from pocket money and are thus actively considered in the marketing activities of toys. Not to be neglected is the share of sales generated with toys for adults aged 20+.