Doll, Toy and Game Manufacturers
Industry Profile Report
Dive Deep into the industry with a 25+ page industry report (pdf format) including the following chapters
Industry Overview Current Conditions, Industry Structure, How Firms Operate, Industry Trends, Credit Underwriting & Risks, and Industry Forecast.
Call Preparation Call Prep Questions, Industry Terms, and Weblinks.
Financial Insights Working Capital, Capital Financing, Business Valuation, and Financial Benchmarks.
Industry Profile Excerpts
Industry Overview
The 500 Doll, toy and game manufacturers in the US design and produce complete dolls, doll parts, doll clothes, action figures, toys, electronic and nonelectronic games, hobby kits, and children's vehicles (except metal bicycles and tricycles). The majority of toy production and supply chains are in Asia and Mexico. Large firms may own manufacturing facilities abroad, and both large and small firms rely on third-party contract manufacturing in foreign countries.
Seasonal, Uneven Demand
Demand for toys, games, and dolls is highly seasonal and peaks during the winter holiday season and around major theatrical releases for the related products.
Trends and Fads
The toy market is subject to fads and trends based on popular culture, movies, media, fashion, or technology.
Industry size & Structure
The average toy manufacturer operates out of a single location, employs about 12 workers, and generates about $3 million annually.
- The toy manufacturing industry consists of about 500 firms that employ about 5,800 workers and generate between $1 billion and $2 billion annually.
- The industry is highly concentrated; the top 50 companies account for over 80% of industry revenue.
- Large firms include Mattel and Hasbro. Video game developers and video game system manufacturers are not included in this industry.
- An estimated 3 billion toy units are sold in the US annually.
Industry Forecast
Doll, Toy and Game Manufacturers Industry Growth
Recent Developments
May 1, 2024 - Slower Growth Forecast for Industry
- The US doll, toy and game manufacturers industry is projected to grow at a CAGR of -2.5% between 2024 and 2028, according to a forecast from Inforum and the Interindustry Economic Research Fund, Inc. The expected growth rate is slower than the overall economy's anticipated growth. The report noted that consumer confidence levels are expected to improve in the forecast window, which bodes well for durable manufacturing industries. Additionally, consumer sentiment has seen a degree of improvement following sustained lower levels. Factors that continue to limit consumer spending are higher price levels and interest rates, though both are expected to improve in 2024. Post-pandemic, consumer spending has shown slower gains of 2.5% in 2022 and 2.2% in 2023, supported in part by savings compiled by households from federal pandemic relief programs.
- Several toy brands saw significant growth in 2023-2024, including Hello Kitty (27%), One Piece (18%), Hot Wheels (13%), LEGO (6%), and Barbie (3%), according to a new report by Brand Finance. The Hello Kitty brand, in particular, has benefited from massive exposure and immense popularity in its home market, generating strong sales growth. Brand Finance also released its top 10 list of most valuable toy brands in 2023-2024, with first place LEGO increasing its brand value by 6.5% to $7.9 billion. LEGO has been the most valuable toy brand for ten consecutive years. “Fueled by a year of solid sales growth, the brand has opened 147 new LEGO-branded stores worldwide, bolstered its digital presence, and rolled out innovative new product lines,” per the report. LEGO is followed in value by Bandai Namco, Barbie, Fisher-Price, Hot Wheels, Nerf, Dragon Ball, Mobile Fighter G-Gundam, Mattel, and Hatchimals.
- Global toy sales were up 26% in 2023 compared to 2019, but experienced a 7% decrease from 2022, according to Circana’s Retail Tracking Service. The report examined sales performance across 12 global markets, including Australia, Belgium, Brazil, Canada, France, Germany, Italy, Mexico, Netherlands, Spain, the United Kingdom, and the United States. Licensed toys accounted for nearly a third of the total toy market, with the highest-performing properties being Pokemon, Barbie, Star Wars, Marvel Universe, and Hot Wheels. Building sets performed well, with sales growth of 4% year over year. LEGO Icons, a line of building sets aimed at older consumers, was the top-gaining property. The average selling price increased just 1% in 2023 compared to the previous year but was up 18% compared to 2019. According to Frédérique Tutt, global toys industry advisor at Circana, “With inflation at the highest level we have seen in decades and birth rates at their lowest in many countries, the global toy industry faced new challenges in 2023. Consumers across many regions had to make difficult trade-offs and reduced their spending on toys and games.”
- Doll, toy, and game manufacturers will have to monitor minimum wage changes, as 22 states increased their minimum wages in January 2024, according to Chain Store Age. About half of the increases are automatic adjustments linked to inflation. States that raised their minimum wages in January 2024 include Hawaii ($14), Maryland ($15), Nebraska ($12), and Washington ($16.28). Several states are set to boost their minimum wage levels later this year, including Florida (up to $13 in September) and Nevada (up to $12 in July). According to the Economic Policy Institute, nearly 40 US cities and counties will increase their minimum wage rates above state levels at the start of the new year. The federal minimum wage is $7.25 an hour, and more than 20 states, primarily located in the South and the Midwest, use the federal minimum as their wage floor.
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