Toy & Game Manufacturing
Companies in this industry primarily engage in manufacturing complete dolls, doll parts, doll clothes, action figures, toys, games (including electronic), hobby kits, and children's vehicles. Major companies include Hasbro, JAKKS Pacific, and Mattel (all based in the US), along with Bandai Namco and Sanrio (both based in Japan), Geobra Brandstätter (Germany), and LEGO (Denmark), as well as the gaming hardware divisions of Microsoft, Nintendo, and Sony.
The global market for toys and games is about $123 billion in 2022 and is expected to grow an annual growth rate of 2.49% between 2024 and 2028, according to Statista. The US is the world's largest manufacturer of games and toys, with a projected revenue of about $40.1 billion in 2024.
The US toy and game manufacturing industry includes about 500 establishments (single-location companies and units of multi-location companies) and has annual revenue of about $1.6 billion. Revenue from toy manufacturing that takes place in the US represents only a portion of revenue recorded by US-based manufacturers, which commonly arrange to have toys produced at factories in countries where costs are lower.
The industry includes manufacturers of video game consoles, which are covered in the Electronic Toys & Games Manufacturing industry profile, but does not include companies that produce software for video or computer games, which are covered in the Entertainment & Games Software industry profile.
Competitive Landscape
Growth in the population of children age 12 and younger drives demand for toys; demand for electronic gaming products is driven by personal income and product innovation. The profitability of individual companies depends on identifying market trends and marketing effectively. Large companies can offer a wide selection of toys, and they have scale advantages in purchasing, manufacturing, distributing, selling, and marketing. Small companies compete effectively by specializing in a product segment or by responding faster to market trends. The US industry is highly concentrated: the top 50 companies generate about 80% of revenue.
Imports, primarily from China, make up the vast majority of the US market. Canada is the largest market for US toy and game exports. Manufacturers of video and electronic games face increasing competition resulting from the increasing use of smartphones and tablets for gaming purposes, driven by the massive increase in the number of mobile game apps and other free or low-cost games available to consumers.
Products, Operations & Technology
Major product segments include toys, games, and hobby goods which account for nearly 30% of the industry revenue. This is followed by dolls, action figures,
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