Germany’s Toy Industry Faces Challenges and Anticipates Seasonal Boost

Germany’s Toy Industry Faces Challenges and Anticipates Seasonal Boost

The German toy industry is navigating a period of economic uncertainty, with cautious consumer spending affecting the traditionally resilient sector. Steffen Kahnt, Managing Director of the German Toy Retailers’ Association (BVS), noted the impact of reduced consumer spending on the industry. However, Kahnt expressed optimism that individuals will prioritize Christmas gift purchases for children.

Christmas Spending Remains Strong

Despite ongoing economic concerns, spending during the festive season has remained stable. The BVS estimates that Germans will spend an estimated €4.4 billion ($4.6 billion) on toys this year, a slight decrease of 3% compared to last year.

Consumer Behavior in Uncertain Times

Joachim Stempfle from the market research institute Circana observed that consumers are opting for more affordable products amid inflationary pressures. However, he noted that this trend may shift when it comes to Christmas gifts, as indicated by a BVS-sponsored survey. Last Christmas, shoppers spent an average of €150 per child on toys, an increase from the previous year.

Seasonal Upswing Expectations

Stempfle emphasized the significance of the upcoming weeks, as many individuals make their Christmas purchases in November and December. Last year, the industry generated 34% of its annual sales during these two months.

Popular Toy Trends

The BVS identified high demand for toys incorporating artificial intelligence, such as robots, as well as classic favorites like trains, construction kits, and games.

Stable Prices and Concerns over Chinese Imports

Kahnt reported that toy prices have remained relatively stable this year, with no major increases anticipated in the coming months. However, toy retailers and producers raised concerns about online platforms in China, which are reportedly offering toys at low prices. Ulrich Brobeil from the German toy industry association highlighted that test purchases revealed many of these products failed to meet EU toy safety regulations. Legal proceedings to establish liability have yet to progress effectively.