Steiff work mainly in mohair, a fabric woven from the fleece of the angora goat, alongside alpaca and woven plush. The mohair for the collector pieces is processed with Steiff Schulte, one of the last weaving mills left in Germany. Elsewhere the company uses certified organic cotton and recycled materials, and has been testing alternatives such as hemp, bamboo and paper plush.

The collector pieces are jointed in the traditional way so the head and limbs turn, and finished by hand. Every genuine piece carries the button in the ear, with a fabric tag beside it. The button began in about 1904 as a defence against counterfeits and became the mark the company is known by.

The mohair is woven at Steiff Schulte in Duisburg, one of the last weaving mills in Germany. Steiff has bought from the mill since 1902, the year of the first jointed bear, and in 2009 bought the mill itself.