Compared to dolls, Teddy Bears are a relatively new toy. Before the introduction of Teddies the bear had often been used to portray a number of toys but these were usually tin-plate or clockwork bears. These bears could dance, play drums or drink etc. These bears were very popular in France and many well-known makers are Descamps and Martin.

German bears often stood on four legs and some could be wheeled about.

The name Teddy Bear was derived from that of the American President, Theodore Roosevelt. This often leads to the belief that the Teddy Bear is an American Invention. This, however, is not quite the case. The Teddy Bear was also being developed in Germany at the same time. The reason the Teddy Bear was named after the President was because he used a Teddy Bear as a mascot. It was actually first known as Teddy's Bear but was later shortened to Teddy Bear.

The German side of the Teddy Bear market is still known today. It has to be one of the most prestigious names for Teddy Bears and this is the Steiff Factory. It was founded by Margarete Steiff. In fact, the first Steiff soft toy was an elephant used as a pin cushion. In 1905 the Steiff Bear gained its famous Button in the Ear Trademark.

The first British Teddy was not introduced until 1909 when he first appeared in a children's story, "The Tale of Teddy Bright Eyes". With a King, at that time, being called Edward or Teddy for short, it is no wonder that the Teddy Bear became so popular especially when being coupled with being cute and cuddly.