Looking for sustainable toy manufacturers outside China? Vietnam, Thailand, and Indonesia offer the scale, certifications, and eco-friendly materials Western brands need. This guide covers safety standards, sustainability certifications, material options, and what each country does best.
The toy industry is changing fast. 68% of parents now actively look for toys made from sustainable materials, and they're willing to pay 15-35% more for eco-friendly products. The sustainable toy market is projected to reach $60-66 billion by 2032.
At the same time, Western brands are caught between tightening EU regulations (the new Toy Safety Regulation kicks in fully by 2030) and the need to reduce dependence on Chinese manufacturing.
At Play Trail, we've spent years building relationships with sustainable toy manufacturers across Vietnam, Thailand, and Indonesia. This guide covers what we've learned about the region's toy manufacturing capabilities and how Southeast Asian toy suppliers can help brands meet both consumer demand and regulatory requirements.
The tariff math is messy, but the story it tells is clear: US tariffs on Chinese goods spiked to 145% in April 2025 and remain volatile, potentially settling around 45% for 2026. Compare that to 10-20% for Southeast Asian toy manufacturers, and the sourcing case makes itself.
But tariffs are only part of the story. COVID-19 exposed the risks of concentrated supply chains, and major toy brands have responded. LEGO opened a $1.3 billion factory in Vietnam in April 2025, calling it their "most environmentally sustainable" facility globally. Hasbro is cutting China production from 86% to 60%. Mattel and Bandai Namco have both expanded their Southeast Asian operations.
Vietnam's trade agreement coverage stands out. The EU-Vietnam Free Trade Agreement eliminates 99% of tariffs, making Vietnam the top ASEAN exporter to the EU with export value up nearly 50% since implementation. Add CPTPP and RCEP membership, and Vietnamese toy manufacturers have preferential access to roughly 90% of world GDP.
Thailand and Indonesia have their own advantages through RCEP and bilateral agreements, creating landed-cost benefits that often exceed the wage differential alone.
This is where Southeast Asia really stands apart. The region has sustainable materials that aren't available at the same scale anywhere else:
For brands serious about sustainable toy sourcing, these resources are hard to find elsewhere.
Before getting into sustainability certifications, it's worth covering the safety requirements that Western markets demand. There are three major regulatory frameworks, and meeting them isn't optional for any toy manufacturer in Southeast Asia targeting export markets.
The EU Toy Safety Directive 2009/48/EC remains in effect until August 2030, when the new Toy Safety Regulation (EU) 2025/2509 takes over. Current requirements include mandatory CE marking, technical documentation retention for 10 years, and compliance with the EN 71 standard series.
What's changing in 2025-2030: The new regulation brings Digital Product Passports (replacing traditional declarations of conformity), expanded bans on endocrine disruptors, PFAS, and all bisphenols, plus cybersecurity requirements for connected toys. Toy manufacturers should start preparing now.
The Consumer Product Safety Improvement Act sets limits at 100 ppm total lead in substrates and 90 ppm in surface coatings, with eight phthalates prohibited above 0.1% concentration. Unlike the EU, the US requires mandatory third-party testing by CPSC-accepted laboratories for all children's products.
Major testing labs like SGS, Intertek, Bureau Veritas, and TÜV all have operations in Southeast Asia, which makes ASTM F963 compliance verification practical for brands working with experienced sourcing partners.
Managing overlapping requirements across markets is where sourcing partners earn their keep. At Play Trail, we maintain compliance matrices for every major market and work only with toy manufacturers who have proven track records meeting Western standards. You focus on product development and marketing; we handle compliance.
Not all certifications carry the same weight with Western retailers. Based on our experience working with major US and European buyers, here's how toy manufacturers should prioritize.
OEKO-TEX Standard 100 Class I has become a baseline requirement for textile toys in Western markets. Class I applies to children's toys for ages 0-36 months and includes testing for over 350 toxic chemicals.
FSC Chain of Custody certification is explicitly preferred by Target for all forest products and qualifies for Amazon's Climate Pledge Friendly program. For wooden toy manufacturers, this is a minimum expectation.
GRS (Global Recycled Standard) requires at least 20% recycled content, though 50% is needed for Amazon Climate Pledge Friendly recognition. Increasingly relevant for recycled plastic toys.
GOTS (Global Organic Textile Standard) requires minimum 70% certified organic fibers and covers the full supply chain. For plush toy manufacturers targeting premium organic markets, this certification supports higher price points.
Amazon Climate Pledge Friendly badges deliver roughly 10% more page views and 12% higher sales within the first year. That's a real commercial benefit for eco-friendly toy brands.
Walmart's Project Gigaton influences procurement decisions, with suppliers reporting annual GHG reductions. Not mandatory, but it matters for preferred supplier status.
Target's Standards of Vendor Engagement are mandatory for all suppliers and include 2025 deadlines for eliminating polystyrene, PVC, PVDC, and carbon black from owned-brand packaging.
Material choices affect safety compliance, sustainability credentials, and costs. Here's our take based on years of toy sourcing experience in Southeast Asia.
Solid hardwood (beech, maple, oak) with FSC certification and water-based finishes offers the best combination of safety and sustainability for wooden toy manufacturing. Yes, it costs 15-40% more than plastic, but premium positioning and consumer demand support the price.
Rubberwood is worth highlighting. It's a byproduct of the latex industry, using trees that have finished their productive rubber-producing years. Thailand has refined rubberwood processing for toys, and several Thai manufacturers have built strong export businesses on this sustainable material.
Bamboo has excellent sustainability credentials as the fastest-growing plant on earth, but processing requires significant energy and adhesive quality needs careful checking.
PP (Polypropylene) and PE (Polyethylene) are the safest conventional plastics: BPA-free, phthalate-free, and recyclable. Suitable for toys that children might put in their mouths.
ABS is considered the safest rigid plastic. LEGO has used it since 1963. It's stable and doesn't leach under normal conditions.
Recycled HDPE from post-consumer materials (like milk jugs) shows that recycled plastics can work well, though verifying source material quality is critical.
PVC should be avoided entirely. A 2022 EU study found 83% of PVC toys tested exceeded lead limits and 65% exceeded cadmium limits. No serious Western retailer wants PVC in children's products.
GOTS-certified organic cotton works well for plush toys: naturally non-toxic, hypoallergenic, and biodegradable. The 20-50% cost premium is supported by strong demand in premium segments.
Natural rubber from Thailand offers a renewable, biodegradable option, though latex allergy labeling is required.
Food-grade silicone is FDA-approved and safe for teethers and sensory toys, which explains its popularity in the infant category.
Each country brings different strengths. Knowing these differences helps match products to the right sourcing location.
Vietnam exported nearly $3.76 billion in toys in 2024, capturing 14% of global toy shipments and ranking second only to China. The country has the strongest trade agreement coverage in the region and increasingly capable manufacturing.
Strengths: Lowest manufacturing costs in the region, EVFTA providing 99% EU tariff elimination, LEGO's investment validating quality potential, good testing laboratory infrastructure. Vietnamese toy manufacturers have developed solid capabilities across wooden toys, plush toys, and plastic molding, with many facilities holding EN71, ASTM, and ISO certifications.
Limitations: FSC-certified wood supply is tight (only about 280,000 hectares nationally), so certified wooden toy programs require careful supply chain planning.
Thailand's toy industry is smaller than Vietnam's but focuses on premium products, particularly sustainable wooden toys.
Strengths: World-leading natural rubber supply with FSC-certified latex available, proven premium brands, rubberwood processing expertise, strong domestic certification infrastructure.
What Thai toy manufacturers have shown: The best Thai producers source materials locally, run zero-waste operations on renewable energy, and export to 70+ countries while exceeding both ASTM and EN71 standards. They've proven that sustainable production and premium quality go together.
Limitations: Less mass-production capacity than Vietnam, higher costs, and a reported 18% failure rate on standards compliance in 2023 testing (which underscores why working with experienced sourcing partners matters).
Indonesia combines certified timber resources with established large-scale manufacturing, particularly for dolls and plush toys.
Strengths: 2.47 million hectares of FSC-certified forest, mandatory SVLK timber verification that automatically meets EU requirements, roughly 50% of the world's toy dolls produced here, and manufacturing infrastructure that has served major global brands for decades.
Growth: Indonesia continues attracting toy manufacturing investment, with new large-scale facilities going up in special economic zones. Doll and plush capabilities are expanding to meet Western demand.
Limitations: Mandatory in-country SNI testing adds time and cost, infrastructure is weaker outside Java, and port congestion raises logistics costs.
Southeast Asia has real advantages for sustainable toy sourcing, but capturing them requires local knowledge, established supplier relationships, and expertise in Western compliance.
That's what Play Trail does.
Supplier vetting: We've spent years finding and qualifying toy manufacturers across Vietnam, Thailand, and Indonesia. Every factory in our network has been personally audited for quality systems, sustainability practices, and compliance capabilities.
Compliance management: We stay current on EN 71, ASTM F963, and ISO 8124 requirements across all major markets. We coordinate third-party testing, manage documentation, and make sure products meet applicable standards before shipment.
Sustainability positioning: We help clients figure out which certifications matter for their retail channels, develop compliant material specifications, and build documentation for programs like Amazon Climate Pledge Friendly and Walmart Project Gigaton.
Supply chain transparency: With EU Digital Product Passport requirements coming, we help clients map and document their supply chains now, before it's mandatory.
Play Trail partners with toy brands and retailers committed to quality and sustainability. If you're diversifying away from China, launching a sustainable toy line, or trying to meet specific retailer requirements, we can help.
Regulatory and retailer requirements are tightening on a known timeline:
2025
2026
2027
2030
The timeline is set. Preparation should start now.
For the EU, toy manufacturers need CE marking and EN71 compliance. For the US, ASTM F963 certification and third-party testing by a CPSC-accepted laboratory are required. Sustainable toy brands should also consider FSC certification for wood products and OEKO-TEX Standard 100 for textiles.
Yes. Vietnam is now the world's second-largest toy exporter, with $3.76 billion in exports in 2024. The EU-Vietnam Free Trade Agreement eliminates 99% of tariffs, and US tariffs are 10% lower than for Chinese goods. Major brands like LEGO, Hasbro, and Mattel have all expanded Vietnamese operations.
Southeast Asia offers FSC-certified wood (especially Indonesia with 2.47 million certified hectares), natural rubber and rubberwood (Thailand is the global leader), organic cotton for plush toys, and bamboo. These materials support premium, eco-friendly toy positioning.
Initial supplier qualification typically takes 2-4 months, including factory audits and sample development. First production runs usually begin 4-6 months after starting the process. Working with an experienced sourcing partner like Play Trail can reduce timeline and risks.
Labor costs in Vietnam and Indonesia are generally 20-30% lower than coastal China. Combined with tariff advantages, total landed costs are often comparable or better. Thailand is slightly higher cost but offers premium quality positioning.
The sustainable toy market is heading toward $60+ billion by 2032, but capturing that opportunity requires the right manufacturing partners, the right certifications, and the right compliance expertise.
If you're looking at sustainable toy sourcing in Southeast Asia, we'd be glad to talk. Play Trail offers free initial consultations to discuss your product requirements, target markets, and sustainability goals.
Contact Play Trail to start the conversation with us now!
Play Trail is a toy sourcing company specializing in Vietnam, Thailand, and Indonesia. We help Western brands find qualified, sustainable toy manufacturers while managing safety and sustainability compliance.
