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 2, 2023 - Consumers to Spend More on Toys in 2023
                                    • Consumers expect to spend more on toys and hobby supplies in winter 2023 compared to a year ago, according to a new KPMG survey in Chain Store Age. The “KPMG Consumer Pulse Winter 2023” report, which surveyed 1,000 US consumers about their projected spending, found that 42% of consumers expect to spend more on toys, and 38% expect to spend more on hobby supplies. According to KPMG consumer and retail leader Matt Kramer, “Our most recent consumer pulse survey showed consumers have largely better or equal pay and are becoming fairly savvy at managing their household budget through shopping around, finding promotional discounts, and deferring large purchases. Consumers will spend more in 2023 on essentials, particularly grocery, automotive, and personal care, and also not miss out on events and experiences with select discretionary categories like travel and restaurants proving to be winners.”
                                    • Hasbro has partnered with Ageless Innovation to create a line of interactive games and toys focused on older adults, according to The Toy Book. The products will expand the “Joy for All” brand and have features such as pieces that are easy to pick up, simple instructions, and relatable narratives. The games will reportedly feature known Hasbro properties, designed with more accessible experiences for older adults. According to Ted Fischer, Co-Founder and CEO of Ageless Innovation, “Hasbro games have had longstanding multigenerational appeal and have been a great way to spark social interaction that brings people of all ages together. The new games are made to make those interactions even easier and more fun for older adults and will help them create meaningful connections with their peers and family members of all ages.”
                                    • Following several years of strong growth, the US toy industry saw flat sales in 2022, according to NPD Group data in The Toy Book. Sales dipped 0.2% in 2022, compared to growth of 14% in 2021 and 17% in 2020. In addition, overall unit sales declined 4% year over year, and the average selling price increased 3% to $12.68. According to NPD’s Juli Lennett, “After three record-breaking years for the toy industry, 2022 was a challenging year. US consumers were forced to endure significant economic headwinds stemming from inflation and adverse macroeconomic factors. While these headwinds certainly impacted overall consumer behavior, the toy industry still managed to finish the year on a positive note as spending kept pace with the previous high-water mark of 2021.” Of the 11 supercategories tracked by NPD, four posted growth in 2022: plush (31%), explorative and other toys (16%), building sets (8%), and action figures (4%).
                                    • Board games are entering a “golden age” as demand soars, with consumers continuing to seek shared experiences and fun times with friends and family following pandemic lockdowns, according to a Washington Post report. Sales of board games grew 28% from January 2022 through November 2022, while card games were up 29%, and strategic card games were up 208% compared to the same period in 2019. People looking for diversions during the COVID-19 lockdown helped generate higher interest in board games. The demand continued to grow as restrictions loosened and family and friends could resume their in-person get togethers. More than 3,000 new board games are released each year, with crowdfunding platforms making it easier for new game designers to get their games produced. Social media posts and online game-focused communities also help bring attention to new games and can drive sales.
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