Quite Sustainable, Actually: The Toy Industry
From Material Transformation, Reduced Packaging, and the Circular Economy to Eco-Design
By Sibylle Dorndorf
Worldwide, more than 123 to 138 billion U.S. dollars (approximately 115 to 130 billion euros) are spent annually on new toys. According to surveys conducted by the U.S. industry association The Toy Association, approximately 45 percent of consumers—primarily younger parents under the age of 40—consider sustainability factors when making purchasing decisions. In Germany, about 60 percent of toy buyers are willing to pay more for environmentally friendly products. In surveys, up to 78 percent of parents state that sustainability is important to them when it comes to toys.
A growing number of companies in the toy industry are responding to this demand with holistic approaches, or at the very least by revamping their production, material, and packaging strategies. Leading toy manufacturers developed various approaches early on to minimize the environmental footprint in children’s rooms. Schleich is considered a pioneer in this field.
Schleich: The C2C Pioneer
The manufacturer of the well-known animal figurines aims to have its products and packaging certified according to the C2C (Cradle to Cradle) standard by the end of 2027. The goal is to ensure that the figurines and materials can be recycled in the future. In the summer of 2024, after four years of research, the industry pioneer launched the world’s first three recyclable figurines that hold this sustainability certification. The first models were a lion, a bonobo monkey, and a turtle. These can be fully reintroduced into the product cycle without any loss of quality. In addition to the transition to new materials, issues related to fair working conditions and environmentally friendly production at Schleich’s locations and among its partners are a key part of Schleich’s sustainability journey.
Mattel: Take-Back Program with PlayBack
Mattel aims to manufacture all of its toys and packaging from 100 percent recycled, recyclable, or bio-based plastics by 2030. Key pillars of this initiative include the PlayBack take-back program, the reduction of plastic packaging, and the use of certified materials. Through the PlayBack program, end-of-life toys can be returned to the manufacturer free of charge so that the materials can be recycled. Mattel uses these recycled materials to build playgrounds for schools, among other things. Another key component is sustainable product lines. Here, Mattel uses plant-based plastics—such as those derived from sugarcane—as well as ISCC-certified, bio-circular materials. These are raw materials derived from organic waste and residual materials that are processed into new products via a fully traceable supply chain.
Kosmos: Eco-Friendly in Books and Games
The renowned book and game publisher specifically applies the C2C approach to the book and game sectors. In addition to producing children’s books free of harmful substances, Kosmos, for example, has the game pieces for the well-known board game Catan manufactured according to circular economy principles in order to keep plastics within the technical cycle.
Interview with Armin Sinnwell, Head of Sustainability at Kosmos
Is it possible today to manufacture toys from materials that are completely free of toxins and harmful substances?
Of course it is possible, and we do just that. We continuously conduct very thorough testing procedures to detect potential toxins and harmful substances. If any abnormal readings are detected, we replace the affected parts of the product with components free of harmful substances—which are then tested again.
Have you achieved the goals you’ve set so far?
We’ve set ambitious goals and have already achieved a great deal. We’ve reduced packaging sizes, cut back on excess packaging material, minimized the use of conventional plastics, and firmly established bio-based plastics in our product line. At our main location in Stuttgart, we’re reducing CO2 emissions in a noticeable and measurable way. So we’ve made some important progress. However, the sustainability process is never truly complete. This is ensured not only by our own standards but also by the European Commission’s regulations, which are currently keeping us quite busy with the EmpCo and the PPWR.
Do retailers pay more attention to environmental considerations when purchasing today?
We know from a survey conducted by the German Toy Industry Association that price is still the main factor influencing purchasing decisions. This is, of course, somewhat frustrating for everyone who is committed to greater sustainability in product development. Retailers are confronted with this issue every day at the point of sale. Nevertheless, we are convinced that environmentally friendly, sustainable products will see increasing demand.
And how do you perceive acceptance among end customers?
As I said: Consumers like to shop as cheaply as possible. Otherwise, those scandalous Chinese sales platforms wouldn’t be used so extensively. Added to this are the current geopolitical conflicts and wars, the economic crisis, and political uncertainty. This easily pushes the topic of sustainability onto the defensive. Nevertheless, everyone in the industry agrees: perceptions of these crises will shift again. In reality, sustainability is the defining issue.
Sustainably manufactured products are more expensive. Would you agree with that?
For the most part, yes. But not always: Reducing packaging to the bare minimum, eliminating plastic wrappers and trays, manufacturing close to the markets where the products are sold, and the resulting reduction in CO2 emissions—all of these are ways to cut costs. On the other hand, however, there are also higher costs—for example, for bio-based plastics, for the use of certifications and eco-labels, and for the bureaucracy involved in meeting regulatory reporting requirements. These costs are weighing on us at Kosmos, just as they are on the entire industry. Nevertheless, we are confident that, in the medium and long term, consumers will also come to understand the higher prices associated with our sustainability efforts. Currently, depending on the fluctuations of geopolitical crises, we are dealing with significant inflationary pressures. The literal few cents we need to spend more to make products more sustainable are negligible in comparison.
What are the next steps in your sustainability agenda?
We’re currently conducting another CO2 analysis of our processes and products and are eager to see the results. We’re also in the process of implementing the European regulations and directives mentioned earlier—namely, the PPWR and EmpCo. As a medium-sized company, that’s keeping us busy for now.
Heunec: The Climate-Neutral Cuddle Agents
Heunec is a fourth-generation family-run business and one of Germany’s largest manufacturers in the traditional plush toy segment. In 2023, Heunec became the first company to be awarded the FTO seal by the Fair Toys Organization. And the succession plan is also exemplary: Josephine Dransfeld has been managing director alongside her mother, Barbara Fehn-Dransfeld, since 2021 and a co-partner since 2024. The “cuddle agents” from Neustadt near Coburg fill the XXL teddy bear with recycled material; the machines run on green electricity, and CO2 emissions are offset. With the Gustav stuffed animal, Heunec has developed a fully Cradle-to-Cradle-certified stuffed animal. All materials used are designed so that they can be returned to the biological cycle without leaving any harmful residues.
Interview with Barbara Fehn-Dransfeld and Josephine Dransfeld
Is it possible today to manufacture toys from materials that are completely free of toxins and harmful substances?
We find the term “free of harmful substances” problematic. Any material can naturally contain traces of substances that are hazardous to health. Currently, toys can be manufactured in such a way that they fall well below the legal limits and are therefore considered safe for children. Various EU bodies continually reassess ingredients, and these assessments are usually reflected in legislation. You’re generally on the safe side with organic cotton, recycled polyester, and Oeko-Tex-certified materials, as even stricter limits sometimes apply to these.
Have you achieved the goals you’ve set so far?
We’ve already achieved many of our goals, such as repeated certification under the Global Recycled Standard (GRS). This product standard provides transparency regarding the actual percentage of recycled content in the materials used. We don’t just claim that we use recycled material—we can prove it. Once a year, we are inspected and audited according to the requirements of this standard. Only if the material manufacturers, as well as the producer and importer, meet the requirements are they permitted to label their products with the GRS logo. A public database ensures transparency. In light of the EmpCo guideline, this is very important. Currently, we already generate about 50 percent of our revenue from products made from resource-efficient components.
Do retailers pay more attention to environmental considerations when purchasing today?
No. Today, the retail industry largely views sustainability as an important differentiator—but it doesn’t act on it. In the toy sector, price continues to be the dominant factor. We feel that our commitment is appreciated, but when it comes to placing an order, it no longer matters: the lowest price wins out, regardless of the circumstances under which the product was manufactured or the materials used. Unfortunately, transparency, fair play, and sustainability do not play a decisive role.
And how do you find the level of acceptance among end customers?
Acceptance among end customers is higher and more consistent than among retailers. There is a significant group of buyers—one that should not be underestimated—who place great value on purchasing sustainably and fairly produced goods.
Sustainably produced products are more expensive. Would you agree with that?
Yes, sustainable materials are more expensive to source, and larger quantities must be purchased in order to obtain the necessary certifications. The global supply of recycled materials cannot yet meet the rising demand. As a result, these products cost about ten percent more than goods made from conventional materials.
What are the next steps in your sustainability agenda?
We’re working with specialists in materials research and textile processing to develop an innovative and eco-friendly material. We hope to share more details soon. Until then, the “Cuddle Agents” are keeping this under wraps.
What’s next for sustainability?
While industry leaders must painstakingly and at great cost overhaul existing processes or environmentally harmful supply chains, startups prevent such structures from forming in the first place. Founders have the great advantage of firmly embedding sustainability as a guiding principle in their DNA from the very beginning.
Episode 2 of this industry roundup on sustainability, titled “Rethinking Sustainability,” focuses on the startup Little Squiggle.
About the author
Sibylle Dorndorf has been writing about the toy industry for over 30 years; most recently, she served as editor-in-chief of the TOYS magazine family at Göller Verlag in Baden-Baden. Her passions include companies that are reinventing themselves, brands that position themselves authentically, people who have something to say, and products with a promising future.
