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
                                    Source: Vertical IQ and Inforum

                                    Recent Developments

                                    Dec 3, 2022 - Retail Sales Increased During Key Holiday Period
                                    • Retail sales during the key Thanksgiving weekend period increased 10.9% year-over-year excluding auto, according to Mastercard SpendingPulse™, which measures in-store and online retail sales across all forms of payment and is not adjusted for inflation. In-store sales increased 10.5% while e-commerce increased 12.5% for the weekend running Thursday, November 24 through Sunday, November 27. Overall retail sales on Cyber Monday, the Monday following Thanksgiving, remained positive though they moderated slightly from the weekend in terms of year-over-year growth. Total Cyber Monday retail sales excluding auto increased 9.7% year over year while e-commerce increased 10.9% and in-store retail sales increased 9.2%.
                                    • Experts cite an increasingly complex set of risks for Asian manufacturers, as China’s COVID-19 lockdowns stifle activity, supply issues emanate from the continuing conflict in Ukraine, and demand-side worries emerge as accelerating inflation dents consumption in the world’s biggest economies. “Rising inflation is forcing some Asian central banks to tighten monetary policy," said Toru Nishihama, chief economist at Dai-ichi Life Research Institute in Tokyo. "There’s also the risk of market volatility from US interest rate hikes. Given such layers of risks, Asia’s economy may remain weak for most of this year.”
                                    • Retail sales are expected to increase between 6% and 8% year over year from November 1 through December 31 to between $942.6 billion and $960.4 billion, according to the National Retail Federation (NRF). The figures exclude spending at car dealers, gas stations, and restaurants. Sales increased 13.5% year over year in 2021 and totaled $889.3 billion. Consumers, especially lower-income shoppers, are grappling with higher prices this year on a range of necessities, but they are still spending, said the NRF. Sales volume — or number of items purchased — is also expected to increase from last year. NRF noted that some holiday shopping may have started before November, as retailers have pushed holiday deals earlier each year, in part to boost overall spending.
                                    • A cohort of shoppers dubbed “kidults” by toy industry insiders has contributed to a 37% increase in toy sales over two years, according to NPD Group. Executives more accustomed to the whims and preferences of children initially thought the spike in purchases of dolls and skateboards were for kids cooped up at home. A 2021 survey by the US industry’s Toy Association found that 58% of adult respondents bought toys and games for themselves. US toy sales are expected to increase 4% year-over-year from 2020 to 2025.
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