Ikea do a choice of sizes for hooded baby towels, so I just bought some bigger ones https://www.ikea.com/gb/en/cat/baby-towels-washcloths-18700/
My almost three year old loves a hooded towel so we’ve bought him ones from H&M. Think they do two different sizes too. I noticed that my little girl is starting to outgrow her towels too but I’ll keep using them until they’re ridiculously small
I got her kids towel from Asda x
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You can buy kids towels that have characters on them