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
Mar 6, 2025 - Companies Mitigate Tariff Effect by Shifting Sourcing
- Top toy manufacturers Hasbro and Mattel are in the process of moving their manufacturing facilities from China, helping the firms mitigate the effects of new Trump Administration trade policies, according to eMarketer. In March 2025, the US imposed an additional 10% tariff on China, and began 25% tariffs on Canada and Mexico, according to the Wall Street Journal. Hasbro anticipates reducing its US toy and game volume from China to below 40% from over 50% in the next two years and has minimal imports from Mexico. Mattel has diversified its supply chain, estimating that China will represent less than 40% of its global toy production in 2025, with Mexico making up less than 10%. Moving toy manufacturing to the US would raise costs significantly because of a shortage of skilled labor and an inadequate plastics industry supply chain, according to a Yahoo! Finance interview with Hasbro CEO Chris Cocks.
- According to a report in CFO Dive, consumer confidence and spending levels, indicators of toy spending, fell due to consumer concerns about tariff effects. Consumer spending was down 0.5% in January 2025, according to the Bureau of Economic Analysis, as consumers reduced purchases of vehicles and other durable goods. All five components of the consumer sentiment index from the University of Michigan dropped in February 2025, including a nearly 20% decrease in buying conditions for durable goods. In addition, the Conference Board index of consumer sentiment in February 2025 marked the biggest decline since August 2021 and the third straight month of declines. According to Stephanie Guichard, senior economist for global indicators at the Conference Board, “There was a sharp increase in the mentions of trade and tariffs, back to a level unseen since 2019. Most notably, comments on the current administration and its policies dominated the responses.”
- The Toy Association, the industry's trade association, is engaged in efforts to reach out to members of Congress and President-Elect Donald Trump’s transition team to discourage the imposition of tariffs on toys. Trump has discussed plans to impose tariffs of up to 60% on all products manufactured in China. The toy industry would be one of the industries most impacted by such a tariff since nearly 80% of US toys are manufactured in China. The Toy Association says the tariffs would be devastating and inflationary for kids, parents, and toy businesses. A recent report by the Peterson Institute for International Economics says American households would directly feel the effects of a 60% tariff. Per the report, “While toys seem like products for which substitute sellers would be readily available, China maintains a dominant position in toy production for several reasons, including its not-easily-reproduced capacity to produce materials that meet US product safety standards.”
- 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.
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