According to Sino Foreign Toy Network, in 2025, traditional and trendy toy companies faced numerous challenges and unfavorable factors, such as slower-than-expected recovery in the domestic market, weak consumer demand, and intensified industry competition. As a result, many of these companies expressed strong interest in expanding overseas, hoping to find new growth opportunities in global markets. However, the global trade environment became more complex due to the U.S. reigniting trade wars and imposing tariffs on multiple countries, which negatively impacted China's toy exports.
First, let's focus on the monthly export performance. Customs data show that from January to December 2025, only March and June saw growth in monthly export value, with increases of 6.38% and 8.34%, respectively. The remaining ten months all experienced varying degrees of decline. Notably, from August onward, exports declined for five consecutive months with double-digit drops. The largest decline occurred in October, with a decrease of 30.97%.
In terms of export value, the highest monthly export value was recorded in June at $3.643 billion. This increase was driven by the joint China-U.S. Geneva economic and trade talks statement in mid-May, which announced the cancellation of most tariffs and a 90-day suspension of certain reciprocal tariffs. As the effective tariff rates decreased, companies accelerated production and shipments to fulfill orders and deliver goods as quickly as possible, leading to the export growth in June.
Next, let's examine exports to various countries. While China's toys are exported to 232 countries and regions worldwide, exports to major developed countries and a few developing countries account for over half of the total. According to customs data, in 2025, the top ten countries by export value were the United States, Japan, the United Kingdom, Germany, the Netherlands, South Korea, Mexico, Singapore, Malaysia, and Australia. Their combined export value reached $19.489 billion, a year-on-year decline of 14.47%, accounting for 55.99% of the total annual export value, down 1.17 percentage points from the previous year.
These ten countries were also among the top ten in 2024, though their rankings shifted. For example, Mexico and Singapore dropped from 4th and 5th place in 2024 to 7th and 8th in 2025, while Germany and the Netherlands rose from 7th and 9th to 4th and 5th, respectively.
In 2025, toy companies participating in major international trade fairs noted a significant increase in clients from emerging markets, while clients from traditional markets like Europe and the United States were relatively fewer. However, in terms of actual export performance and expansion efforts, traditional mature markets still dominate, while emerging markets remain underdeveloped. That said, both traditional and emerging markets mostly experienced year-on-year declines in export value last year.
**United States**
As the world's largest toy market, the United States is the top destination for China's toy exports and a key market for most toy manufacturers. In 2025, due to the U.S. policy of imposing additional tariffs on goods originating from China, China's toy exports to the U.S. experienced significant fluctuations. The total export value to the U.S. for the year was $8.588 billion, a year-on-year decline of 18.59%, marking the lowest level in the past five years (2021–2025).
On a monthly basis, aside from January and March, which saw year-on-year growth of 9.67% and 17.86%, respectively, all other months recorded declines. The largest drop occurred in May, with a decrease of 32.76%. After narrowing in June, the decline widened again in July, with double-digit drops persisting for six consecutive months. On a month-over-month basis, after hitting the lowest export value of the year in May, exports increased from June to September before declining again from October onward. This trend is consistent with previous years, where exports typically rise ahead of the Christmas season before gradually tapering off.
**Europe**
In Europe, China's toy exports primarily go to the United Kingdom and the European Union. In 2025, factors such as Europe's incomplete economic recovery, increasingly stringent environmental policies, and tighter regulations on cross-border small packages contributed to weak export performance to major European countries and regions. Toy exports to the United Kingdom amounted to $1.527 billion, a year-on-year decline of 6.22%, while exports to the European Union totaled $8.088 billion, a year-on-year decline of 13.23%.
