U.S.

DepartmentofCommerceIndustryReport
Dolls,Toys,Games,andChildrensVehiclesNAICSCode33993

IndustryDefinition
NAICS339931comprisesestablishmentsprimarilyengagedinmanufacturingcompletedolls,
dollparts,anddollclothes,actionfigures,andstuffedtoys.NAICS339932comprises
establishmentsprimarilyengagedinmanufacturinggamesandgamesetsforadultsand
children,andmechanicalandnonmechanicaltoys.Establishmentsprimarilyengagedin
manufacturingelectronicvideogamecartridgesandnondollrubbertoysarenotincluded.The
informationinthisindustryreportaggregatestheindustrydataforbothNAICScodes.

CurrentEconomicIndicatorsNAICS33993
Seethetablebelowforacompletelistingofthecurrenteconomicindicatorsforthetoy
industry 1 .

TotalValueof
Shipments

2004

2005

2006

2007

2008

2009

2010

$3,558,885

$3,721,741

$3,904,760

$3,021,754

$2,861,473

$2,115,219

$2,307,707

ProductShipments

$3,180,434

$3,284,022

$3,431,119

$2,526,067

$2,568,226

$1,882,415

$2,076,556

$880,493

$21,427,885

Apparent
Consumption

$16,922,473 $18,895,201 $19,551,567 $22,807,609 $24,127,626 $20,956,451

$22,203,803

Importsasa%of
Apparent
Consumption

$12,053,678 $13,439,770 $14,592,830 $19,446,731 $20,677,929 $18,330,413 $18,979,444

ImportsfromChina
ImportsfromChina
asa%ofApparent
Consumption

84.17%

71.23%

85.97%

71.13%

86.81%

74.64%

$1,554,128

$14,244,081 $16,243,647 $16,971,999 $21,768,888 $22,820,281 $20,423,985

$1,983,033

$1,531,789

Imports

$1,325,192

$1,582,753

Exports

$1,070,187

95.45%

85.26%

94.58%

85.70%

97.46%

87.47%

96.51%

85.48%

Theindustrysdomesticproductionin2010,thelatestyearofavailabledata,wasestimatedat
approximately$2.076billion.WhilethemajorityoftoysdestinedfortheAmericanmarketare
designedintheUnitedStates,largescaleproductionhasshiftedabroad.However,even
thoughlargeportionsofthemajorU.S.toycompaniesproductlinesaremanufacturedoutside
theUnitedStates,theystillincorporatesignificantU.S.valueintermsoftheproductdesign,
marketing,researchanddevelopment,andcorporatesupportfunctions.WhileU.S.toy

Thisreportusesthemostrecentfullyeardata,2010.Sources:U.S.CensusBureau'sAnnualSurveyof
Manufacturing:http://www.census.gov/manufacturing/asmandtheU.S.InternationalTradeCommissionsTrade
Dataweb:http://dataweb.usitc.gov

companieshavetheirowntoydevelopmentdivisions,theyalsosupportanetworkof
independenttoyinventorsanddesignersthatselltheirconceptstothelargercompanies.The
largestU.S.toytradeassociation,ToyIndustryAssociation(TIA)hasresourcesthattoy
inventorsanddesignerscanusetomarkettheirproductstomanufacturers.TIAorganizesone
oftheworldslargesttoytradeshows.HeldeachyearinFebruaryinNewYorkCity,ToyFair
attractsmorethan20,000attendeesand12,000exhibitorsin350,000squarefeetofexhibit
space.

TIAestimatesdomestictoyrelatedemploymentat31,000.TIAmembercompaniesemployed
approximately26,215U.S.workersin2009.TIAemploymentfigurescapturealltoyrelated
operationsincludingindependenttoyinventorsanddesigners.TheBureauofLaborStatistics
QuarterlyAssessmentofEmploymentandWagesestimated2010employmentat11,886,down
from12,881in2010. 2 TheCensusBureaus2010AnnualSurveyofManufactures(ASM) 3 ,a
samplingofmanufacturingoperations,estimatedmanufacturingrelatedemploymentat9,137.

ToySales
TheU.S.ToyIndustryAssociation,TIA,estimatesthatU.S.retailsalesoftraditionaltoyswere
$21.78billionin2008,up2percentfrom2009 4 .TIAmembercompaniesreportedthatthetoy
categoriesofDolls,BuildingSetsandOutdoor&Sportstoyssawthestrongestgrowthin2010,
whileYouthElectronics,ActionFigures&Accessories,andGames&Puzzlessawthelargest
drop.

TIAestimatesthattheworldwideretailsalesoftoystotaled$80.280billionin2009 5 .Thetop
tenmarketsbyretailsaleswere:UnitedStates;Japan,China,theUnitedKingdom,France,
Germany,Brazil,India,Australia,andCanada.Annualtoyspendingperchildinthesemarkets
rangedfromahighof$401inAustraliatoalowof$6inIndia. 6

http://www.bls.gov/cew.Majorexclusionsincludeselfemployedworkers.

http://www.census.gov/manufacturing/asm/index.htmlTheAnnualSurveyofManufactures(ASM)isasample
surveyofapproximately50,000establishments.

Thetermtraditionaltoysdoesnotincludevideogames.TIAsStateoftheIndustryTableavailableat:
http://www.toyassociation.org/AM/Template.cfm?Section=12_Rolling_Months

TIAcommissionedreportToyMarketsintheWorld:SummaryChartsAnnual2009bytheNPDGroupavailable
at:http://www.toyassociation.org/AM/PDFs/Trends/ToyMarkets10.pdf

Ibid.

U.S.ExportsandImportsofNAICS33993
U.S.tradestatisticsdontreflecttheglobalstrengthoftheU.S.toyindustrysincethemajorityoftoys
consumedintheU.S.areimportedorproducedregionallytoservespecificmarkets.TheU.S.toy
industryexported$1.531billionin2010adecreaseof3.2percentfrom2009.

Toys,Dolls,andGamesNAICS33993:FASValueU.S.DomesticExports 7
2001
Country
Canada
Paraguay

2002

2003

2004

293,472

319,731

337,921

315,458

2005

2006

In1,000Dollars
443,826
433,283

2007

2008

2009

2010

540,887

376,955

367,525

381,652

12,490

15,478

34,803

26,176

16,306

34,424

37,183

99,898

163,015

226,508

128,249

88,520

68,873

81,188

78,699

233,321

749,717

324,323

229,555

205,271

HongKong

29,343

44,627

52,523

46,902

54,559

71,809

106,324

69,043

82,470

63,552

United
Kingdom
Chile

70,613

68,025

65,745

71,811

75,387

76,536

72,676

74,359

71,177

59,067

6,915

5,451

6,752

5,669

30,618

36,085

31,501

47,421

39,452

52,227

Panama

5,138

5,852

5,403

5,757

8,696

11,982

24,188

55,816

49,508

46,806

Germany

20,244

21,728

16,246

20,436

16,692

16,816

17,544

15,497

18,867

35,909

Colombia

9,942

8,116

8,357

8,009

12,452

20,712

24,512

35,872

35,424

32,926

64,013

57,669

51,212

41,062

45,230

33,446

28,658

30,208

30,667

31,494

Subtotal:

640,419

635,198

647,834

622,469

782,464

968,414

1,633,189

1,129,394

1,087,661

1,135,411

AllOther:

226,491

199,837

214,922

258,024

287,723

356,779

349,844

424,735

495,092

396,378

Total

866,910

835,036

862,756

880,493

1,070,187

1,325,192

1,983,033

1,554,128

1,582,753

1,531,789

Mexico

Japan

2010ToyExportsNAICS33993(In$1,000)

ITAdoesnotconsiderParaguaysimportsofU.S.manufacturedtoystobeindicativeofParaguaysdomestic
consumption.

ThetopfiveexportdestinationswereCanada,Paraguay,Mexico,HongKong,theUnited
Kingdom,andChile.Combined,Canada,Paraguay,andMexicoaccountedfor53percentoftoy
exports.

Thetoyindustryimported$21.427billionworthoftoys,dollsandgamesin2010,anincreaseof
5percentover2010levels.

Toys,Dolls,andGamesNAICS33993:CustomsValueU.S.ImportsforConsumption
2001

2002

2003

2004

8,742,865
3,206,034

10,428,832
2,055,828

11,660,592
690,227

12,053,678
604,364

Mexico

552,629

1,029,327

395,910

317,211

318,359

Denmark

122,514

135,999

89,721

98,434

Canada

193,475

177,410

159,007

Indonesia

119,832

110,847

Taiwan

207,893

Thailand

109,060

Vietnam

309

6,505

5,390

10,851

23,868

Hong
194,399
Kong
Subtotal 13,449,010

209,715

201,480

196,486

158,266

14,458,517

13,598,673

13,779,472

15,800,354

603,592
15,062,108

575,198
14,173,871

464,609
14,244,081

443,293
16,243,647

Country
China
Japan

Other:
Total

751,673
14,200,683

2005

2006

2007

2008

2009

2010

19,446,731
843,295

20,677,929
758,488

18,330,413
741,681

18,979,444
692,406

312,178

304,603

294,328

276,086

339,744

115,753

129,908

163,019

108,428

205,568

278,733

141,325

134,937

106,009

89,158

104,653

109,226

240,197

107,581

93,180

89,607

77,291

97,998

114,322

121,991

202,406

191,513

186,723

172,279

169,196

196,115

170,703

143,869

153,923

101,648

97,252

77,220

76,955

93,301

70,549

91,940

66,706

86,006

28,144

42,103

48,420

73,215

81,545

174,140

127,050

95,891

63,360

69,780

16,568,977

21,380,621

22,465,103

20,132,115

21,095,376

403,022
16,971,999

388,267
21,768,888

355,178
22,820,281

291,870
20,423,985

332,509
21,427,885

In1,000Dollars
13,439,770 14,592,830
1,270,560
885,981

2010ToyImportsNAICS33993(In$1,000)

ThetopfiveimportsourceswereChina,Japan,Mexico,Denmark,andCanada.Chinese
producedtoysaccountedforapproximately88percentofalltoyimportsin2010.

173,598


U.S.apparentconsumptionoftoyswasapproximately$22.2billionin2010withimportsfrom
Chinaaccountingfor85percentofthetotal.

U.S.ToyImportsNAICS33993vs.ApparentConsumptionandToyImportsfromChina

U.S.andForeignToyTariffs
TheU.S.toyindustryfacesrelativelylowforeigntariffs.U.S.toytariffswerereducedbeginning
in1995,andeliminatedby1999,aspartoftheGATTUruguayRound"ZeroforZero
negotiations.OthersignatoriestotheagreementincludetheEuropeanUnion,Japan,and
Korea.ToytradebetweenCanada,MexicoandtheUnitedStatesisdutyfreeundertheNAFTA
agreement.AspartofChinasaccessiontotheWorldTradeOrganization(WTO),iteliminated
tariffsonmosttoycategoriesin2005.

In2011,FreeTradeAgreementsweresignedwithKorea,Columbia,andPanama.Current2012average
toytariffs 8 onU.S.madetoyproductsare:Korea4.7percent;Columbia:18.5percent;andPanama:
10.4percent.ToytariffsinKoreawillbereducedtozerouponimplementationoftheagreement.Toy
tariffsinColumbiawilldecreaseto0percentaftera10yearstaging.ToytariffsinPanamawillbe
reducedeitheruponimplementation,orusingafiveortenyearstagingperiod.

InDecember2011,RussiawasinvitedtojointheWTOasthe155thmember.Afterfull
implementationofitsWTOcommitments,toytariffswhichrangefrom520percentwillbe
reducedandboundbetween515percentdependingontheproductcategory.Russiais
expectedtoformallyjointheWTOin2012.

Toysaredefinedaschapter95oftheU.S.HarmonizedTariffSchedule.Specifictoyratesprovidedinthisreport
areforheadings9501,9502and9503.FTATariffratesforotherheadingsareavailablethroughtheDepartment
ofCommercesFreeTradeAgreementTariffTool.

U.S.toycompaniesstillfacetariffsrangingofupto1020percentinSouthAmericancountries
suchasBrazil,andAsiancountriessuchasIndonesia,Vietnam.ForcurrenttariffsonU.S.
productscontacttheTradeInformationCenterorcall1800USATRADE.

WhileU.S.toycompaniesgenerallyenjoyrelativelylowtariffsinkeyexportmarkets,theycan
stillencounternontariffbarrierstothesesamemarkets.Companiesthatencounterproblems
exportingareencouragedtoreporttheirproblemtotheInternationalTradeAdministrations
TradeComplianceCenter.TheU.S.DepartmentofCommerceworkinginconjunctionwith
USTRandtheCommercialstaffatEmbassiesabroadhaveresolvednumerousnontarifftrade
barriersforU.S.companiesincludingissuespertainingtoimportlicenses,safetystandards,and
labelingrequirements.

IndustryLegislativeChangesandToyRecalls
In2007,morethan45milliontoysandotherchildren'sproductswererecalledforhazardssuch
asleadpaintandsmallpowerfulmagnetsthatcouldinjurechildrenifswallowed.Stakeholders,
includingtoymanufacturers,retailers,andconsumergroups,participatedinnumerous
Congressionalhearingswhichresultedinsignificantchangestothestandardsandtesting
proceduresappliedtodomesticallyproducedandimportedtoysandchildrensproducts.On
July31,2008,CongresssentPresidentBushacompromisebill,H.R.4040,entitledConsumer
ProductSafetyImprovementActof2008.TheActimpactedtheU.S.toyindustryinthe
followingways:

Childrensproducts thatcontainleadabove600partspermillionforthefirstyear,
reducingto100partspermillionbeginningthethirdyearfollowingtheenactmentofthe
Act,willbetreatedasbannedhazardoussubstances.Thelimitsrepresentsomeofthe
lowestleadlimitsintheworldandeffectivelybansleadfromchildrensproducts.
Thirdpartytestingandcertificationforcertainchildrensproductswillbemandatory.
Children'sproductswillberequiredtobeartrackinglabelsthatwouldallowtheirpath
fromfactorytostoretobemoreeasilyretracedintheeventofarecall.
Toysandgamesadvertisedforsaleontheinternetandincatalogswillberequiredto
prominentlydisplaythesamecautionarylanguageincludedonproductpackaging
ThevoluntaryindustrystandardASTMF963willbecomeamandatorystandardoverseen
bytheCommission.
Phthalatesareagroupofchemicalsaddedtoplastictoysandotherplasticproductsto
makethemsoftandpliable.ThephthalatesDEHP,DBP,andBBPwouldbebannedabove
concentrationsof0.1percent.UntiltheresultsofaChronicHazardAdvisoryPanelhave
beenreceived,thephthalatesDINP,DIDP,andDNOPwillbebannedaboveconcentrations
of0.1percentinanychildrenstoyorchildcarearticlethatcanbeplacedinachilds
mouth.

TheConsumerProductSafetyCommissionwebsitehasnumerousinformationalresourcesto
helpstakeholdersunderstandhowtheActsrequirementswillbeimplementedincluding
downloadablevideofilesofrecentpublicmeetingsandtimelineswhichsummarizethe
requiredactionspursuanttotheAct.

TheAPECToySafetyInitiative
TheAPECToySafetyInitiativewastheU.S.responsetothemanynotabletoyrecallsof2007,
andtoAPECLeaderscallsin2007and2008tostrengthenconsumerproductsafetystandards
andpracticesintheregionandtoundertakeworktoensurethesafetyoftoys.Theproject
wasmanagedbytheU.S.DepartmentofCommercesOfficeofHealthandConsumerGoods
andtheITAsStandardsLiaisoninconjunctionwithUSTR.TheInitiativewascosponsoredby
sevenAPECeconomies:Chile,China,ChineseTaipei,Japan,Malaysia,andVietNam.TIAwas
theU.S.privatesectorpartnerandcontributedhalfoftheoperatingfunds.TheInitiativecalled
forasurveyofcurrenttoyregulatorypracticesofallAPECmembereconomiesandtwoevents:
ARegulatorDialogueonToySafety,heldonthemarginsoftheSingaporeSCSCmeeting
August12,2009;andAnOpenDialogueonToySafetyforAllStakeholders(OpenDialogue)
heldduringtheHongKongToyFaironJanuary12,2010.

ThetwoDialoguesmarkedthefirstevermeetingsofalltoyindustrystakeholderswithinthe
APECregion(hometoover85%ofalltoymanufacturersandexporters)todiscuss
opportunitiesandobstaclestoglobalstandardsalignment.TheSingaporemeetingwas
attendedby130regulatorsfrom20ofthe21APECeconomies(onlyRussiawasnot
represented).TheHongKongmeetingwasattendedby214peoplerepresentingregulators,
standardsbodies,toymanufacturers,retailers,toyassociations,testingcompanies,andother
governmentrepresentatives.NonAPECattendeesincludedBelgium,Denmark,India,Sweden
andSwitzerland.Therewasdiscussionoftheregulatorysystemsof15members,andthe
relationshipbetweenthethreemaintoystandards,ASTMF963,theEUsEN71,andISO8124.

KeyOutcomesfromSingapore
Commitmenttoparticipateinasurveyofmembereconomiesregardingtoysafety
systemsasadeliverabletotheHongKongmeeting.
AgreementbetweentheASTMandISOtechnicalcommitteestoconsultationson
emergingtoysafetyhazards.

KeyOutcomesfromHongKong 9
CompletionandendorsementoftheAPECToySafetySurveyandcirculationofthe
documenttotheOECD,WTOTBTCommitteeandrelatedorganizations.
AgreementbyAPECmemberstocontinuetopursuestandardsalignmentinall
stakeholdergroupsthroughanindustrytaskforce,internationalregulatorforums,and
consumerorganizationsundertheauspicesoftheAPECToySafetyInitiative.
CommitmentbyCPSCtodedicateresourcesforglobaltoystandardsalignmentinits
2010workplanentitledPlanforInternationalCoordinationonToySafety
Requirements(releasedMay2011).

Questionsrelatedtothisindustryreportshouldbedirectedtothetoyindustryanalystat
Jamie.Ferman@trade.gov
Updated1242012

KeyDocumentsfromtheHongKongmeetingareavailableontheTIAwebsite:
http://www.toyassociation.org/AM/Template.cfm?Section=APEC_Meeting