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

                                    Mar 1, 2024 - Producer Prices Stable, Employment Costs Up
                                    • According to data from the Bureau of Labor Statistics (BLS), producer prices for the doll, toy, and game manufacturing industry decreased slightly mid-year in 2023 and remained stable for the second half of the year. In December 2023, producer prices increased by 0.8% from the previous year and 26.6% from 2019. Employment levels in the industry have grown by 1.6% from December 2019 to December 2023. Wages have risen significantly in a tight labor market, reaching $26 an hour in the fourth quarter of 2023 and increasing more than 23% since December 2019, according to the BLS. Additionally, consumer spending levels grew in the last half of 2023, a 3.1% increase in the third quarter and 2.8% in the fourth quarter, according to Reuters.
                                    • 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.
                                    • Consumer confidence levels rose in January 2024 for the third month in a row, following three consecutive months of declines, according to data from The Conference Board. The Conference Board’s consumer confidence index increased to 114.8 in January 2024 from 108 in December 2023. According to Dana Peterson, Chief Economist at The Conference Board, “January’s increase in consumer confidence likely reflected slower inflation, anticipation of lower interest rates ahead, and generally favorable employment conditions as companies continue to hoard labor.” Peterson added that the gains in consumer confidence were largest in householders aged over 55. Plans to purchase homes, autos, and large appliances declined slightly on a monthly and six-month basis.
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