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.
Trends and Fads
The toy market is subject to fads and trends based on popular culture, movies, media, fashion, or technology.
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.
Industry size & Structure
The average toy manufacturer operates out of a single location, employs 11-12 workers, and generates about $3 million annually.
- The toy manufacturing industry consists of about 500 firms that employ about 5,700 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
Nov 10, 2024 - Manufacturing Activity Contracts
- US manufacturing activity contracted in October 2024, marking the lowest Manufacturing PMI registered in 2024, according to the Institute for Supply Management’s Manufacturing ISM Report on Business. The Manufacturing PMI registered 46.5% in October, down 0.7 percentage points from the 47.2% recorded in September. A reading above 50% indicates manufacturing expansion. According to the US Bureau of Labor Statistics (BLS), producer prices for doll, toy, and game manufacturers fell 1.5% in July 2024 compared to a year ago. Employment by manufacturers of dolls, toys, games, and other miscellaneous durable goods declined 0.6% in July 2024 compared to a year ago, while labor costs have increased during the same period. Average wages for nonsupervisory employees for all other miscellaneous durable goods manufacturers, including doll, toy, and game manufacturers, rose 7.9% in July 2024 compared to a year ago, reaching an average of $24.35 per hour, per the BLS.
- The US doll, toy, and game manufacturers industry is projected to grow at a CAGR of -0.41% 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. Factors that continue to limit consumer spending are higher price levels and interest rates, though both are expected to improve in 2024. According to the forecast, overall nondurable manufacturing volumes have been uneven in recent years. Volumes were up 2021, before leveling off in the first half of 2022. Production began to fall later in the year, and December 2023 levels were slightly lower than those in 2019. The report noted that consumer confidence levels are expected to improve in the forecast window, which bodes well for non-durable manufacturing industries. Additionally, consumer sentiment has seen a degree of improvement following sustained lower levels.
- A new law has been signed by Gov. Josh Shapiro in Pennsylvania allowing recycled materials to be used in or on stuffed toys manufactured and sold in the state, according to Lehigh Valley News. Previously, a law from 1961 prohibited the distribution and sale of stuffed toys made with recycled materials. The updated law maintains stringent regulations on recycled materials designed to ensure the safety of toys but also allows toy manufacturers to meet the growing demand for sustainable products. Toys will bear tags that state the toy was made with new, recycled, or a combination of those materials. The change was supported by The Toy Association. According to Greg Ahearn, the president and CEO of The Toy Association, “The ability to use recycled materials in stuffed toys sold in Pennsylvania will have a positive impact on manufacturing, help to reduce waste, promote environmental responsibility, and represents the industry’s dedication to sustainable toy manufacturing.” Other states with restrictions on the use of recycled materials in stuffed toys include Ohio and Massachusetts.
- The US toy retail sales declined slightly in the first four months of the year compared to a year ago but remained higher than 2019, according to market research firm Circana. Toy industry dollar sales were down 1% from January 2024 to April 2024, though they performed better than the broader general merchandise category. Toy sales are still 38%, or about $2 billion, over 2019's sales levels. The top-selling toy for the four-month period was Squishmallows plush toys, while trading cards topped the list of the new toys. The top supercategories for dollar growth per Circana were building sets (led by LEGO Icons), explorative toys (led by Miniverse), and vehicles (led by Monster Jam). The adult toy market (buyers aged 18 and older) has been growing since the pandemic, contributing $1.5 billion in sales in the first quarter of 2024, overtaking the 3-to-5-year-old segment to become the most important age group for the toy industry. According to Juli Lennett, VP and toy industry advisor at Circana, "Tailwinds, like the growing adult toy market and spending power of higher income households and grandparents, drive positive trends. However, headwinds like rising household debt, slowing GDP growth, and fluctuating consumer confidence indicate potential challenges.”
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