Although many brands and retailers have explored take-back and recycling programs for toys over the years, these efforts are often viewed as cost centers rather than opportunities to deliver customer value or capture new markets. Retail resale markets with charitable purposes are a popular beneficiary of toy donations. Meanwhile, unofficial reuse networks—like online parent groups or 'buy nothing' communities—continue to thrive without brand involvement, data insights, quality control, or profit.
Insights from the Field: Gaps and Barriers to Toy Repair, Reuse, and Resale
- Recycling-Centric Approaches Dominate: Current brand-driven toy take-back efforts predominantly focus on recycling, which is seen both as a cost center by brands and not the best use by customers, often overlooking the higher value potential of reuse, repair and resale.
- Lack of Business Case: Brands struggle to demonstrate the profitability or strategic advantage of circular models, hindering internal buy-in. Historically, there have been some examples of repair networks and programs that have proved profitable for toys—but offshoring has limited this more recently.
- Uncaptured Secondary Markets: Vibrant secondhand markets exist, yet brands lack mechanisms to participate in or benefit from these channels.
- Limited Consumer Engagement: Minimal investment in marketing and consumer education restricts the expansion of brands’ existing toy recovery programs due to lack of visibility and participation.
- Safety and Liability Concerns: Brands express apprehension about product safety, recalls and potential reputational risks associated with refurbished or resold toys without the necessary certifications or third-party standards in place.
- Operational Challenges: Establishing reverse logistics, repair infrastructure and quality assurance systems requires significant investment and coordination.
- Regulatory Uncertainty: The absence of standardized guidelines for refurbished toy quality and safety complicates industry-wide adoption.
Opportunities: Building a Circular Toy Economy
Despite these challenges, several opportunities can be leveraged to foster a more sustainable and circular toy industry—and arguably, now is the time to seize the opportunity. Recent trade volatility and geopolitical uncertainties have highlighted the vulnerabilities of the toy industry’s global manufacturing dependencies. With the vast majority of toys produced overseas—over 85% are imported—rising transportation costs, delayed timelines and fluctuating import fees have forced manufacturers to rethink their operating models. In this environment, keeping toys in circulation longer through successive sales is potentially a source of profits and a meaningful sustainability lever.
In our workshop, a key insight emerged: customers don’t know the brands behind the toys—they only know the iconic toy. This can prime the market for more collaborative opportunities across competitor brands, supporting potential opportunities for cross-brand take-back programs. Third-party refurbishers, certified to meet industry-developed standards for safety, cleanliness,and performance, could ensure every product is play-ready.
Here are some of the positive opportunities we heard suggesting that now is the time to advance toy circularity:
Consumer Engagement and Brand Loyalty
- Emotional Resonance: Toys often hold sentimental value. Programs that facilitate the repair or resale of cherished toys can strengthen brand loyalty and customer satisfaction. Many customers are unhappy when they learn that take-back programs are simply recycling their toys.
- Accessibility and Affordability: Offering refurbished toys at lower price points can make products accessible to a broader demographic, expanding market reach.
- Educational Initiatives: Engaging consumers through storytelling and education about the benefits of circularity can drive behavioral change and program participation. This applies both to consumers and employees—as it takes the whole ecosystem to change cultural norms, and employees can be ambassadors for this.
Operational Enhancements
- Data-Driven Insights & Transparency: Systems such as Digital Product Passports (DPPs) can provide valuable transparency across the value chain through data on product usage, durability and failure points—critically informing design improvements for more durable products.
- Local Repair Ecosystems: Partnering with local repair shops and community organizations can build decentralized repair networks, support local economies and reduce logistical complexities. This is especially relevant in the current macro climate, where tariffs are creating more uncertainty in global supply chains—while local supply chains can offer more resilience.
- Standardization and Certification: Developing industry-wide standards and certification programs for refurbished toys can ensure quality and safety, building consumer trust.
Financial Incentives
- Revenue Streams: Participating in the resale market allows brands to capture value from products beyond the initial sale, tapping into the growing secondhand economy.
- Regulatory Alignment: Proactively adopting circular practices positions brands favorably in anticipation of potential future Extended Producer Responsibility (EPR) regulations and sustainability mandates.
Environmental Impact
- Waste Reduction: Prioritizing reuse and repair over recycling minimizes waste generation and conserves resources.
- Carbon Footprint Mitigation: Extending the lifespan of toys reduces the need for new production, thereby lowering greenhouse gas emissions associated with manufacturing processes.
- Alignment with Consumer Values: A significant portion of consumers, particularly younger demographics, prioritize environmental responsibility in their purchasing decisions.
So, what could this alternative future look like?
Imagine a world with a vibrant, brand-agnostic resale platform for refurbished toys, all marked with a reassuring “Keeping Toys in Play Certified” badge, denoting quality and safety assured by third-party providers.
- A collaborative, cross-brand initiative where toy manufacturers come together under a unified framework.
- Third-party refurbishers, certified to meet industry-developed standards for safety, cleanliness and performance, ensure every product is play-ready.
- Every toy listed carries a digital product passport (DPP) offering repair histories, usage tips and even stories from past owners—inviting families to become part of a toy’s evolving legacy.
- Brands can choose to participate and profit—gaining visibility into post-sale behavior, building customer loyalty and capturing value from products that would otherwise be lost to unregulated resale platforms.
- Retail partners integrate RePlay Market into in-store displays and digital storefronts, using take-back bins and QR codes to create new points of engagement with customers.
The result?
- Parents feel like heroes, giving toys a second life while saving money.
- Children feel connected, knowing the toy they play with carries stories from another family just like theirs.
- Brands reconnect with their customers in a way that aligns with emotional value, sustainability and cultural relevance.
- And the toy industry—long bound by linear design and fleeting usage—finds new revenue channels, consumer trust and resilience in the face of changing market dynamics.
Embracing a Circular Future
The Center for the Circular Economy is committed to supporting stakeholders in this journey—providing expertise, facilitating collaboration, and driving systemic change. Together, we can keep toys in play and build a more sustainable future for generations to come.
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