Toys are important for children’s growth, therefore, toy industry develops rapidly as people raise the living standard. In the 21th Century, toy industry faces five major development trends and five challenges as follows.

Currently, the five challenge mainly comes from five areas. 1. That laws, regulations and standards about toy products’ safety become more stringent makes toys’production cost increase, quality control improve, testing and re-certification costs raise. 2. In addition to Europe and the United States setting technical barriers to trade by improving the legal and regulatory requirements, some developing countries also set trade barriers through export quotas, import licenses, etc. 3. From a macro trend, China's labor costs will continue to rise, which bring labor-intensive toy enterprises a lot of cost pressures. 4. Private ownership of talent of toy design and quality control severely restrict enterprises’product’quality improvement  and stability, independent R & D and innovation, thus affecting the entire industry improving the core effect. 5. Toy sales bottleneck in the domestic market should be broken, and toy companies should not passively wait for the market maturity, and the whole industry should work together to promote their brands to consumers.

The trends that most likely show are as below. 1. Industry development enters into meager profit era, toy product updates will be faster and faster, toys, and toy consumer cycle is getting shorter. 2. Brands’crowding effect rises, and policy resources, channel resources, social resources will continue to move closer to large enterprises. 3. Toy business develops to the direction of differentiation, and specification of work becomes more and more fine. 4. Commercial activities coexist, and specialized sales grow continually. 5. Industry alliance that takes animation as the cultural connotation, takes seience and technology as technical means, and takes toy as manifestation will become an inevitable trend.