Toy Industry Economic Impact in the U.S. Reaches $107.5 Billion
October 10, 2017 | The toy industry’s annual total economic impact in the U.S. grew to $107.5 billion in 2017 from $80.25 billion in 2015, according to a new report from The Toy Association.
The data for 2017 indicates that the U.S. toy industry supports more than 677,000 jobs (FTE), generates $34.2 billion in wages for workers, and brings in $14.6 billion in combined state and federal tax revenue each year. Approximately 3 billion toys are sold across the U.S. per year and while the average retail price of a toy is $10.14, the industry generates roughly $26.5 billion in direct U.S. retail toy sales and $90 billion in global retail toy sales annually.
“As the toy industry grows, it has considerable impact on the U.S. economy through increased revenues, jobs, and tax dollars,” says Ed Desmond, The Toy Association’s executive vice president of external affairs. “Here at The Toy Association, we actively support our members’ vitality and ability to expand both here in the U.S. and internationally through a number of initiatives and education.”
The findings in the Economic Impact of the Toy Industry in the United States (2017) was produced for The Toy Association by John Dunham & Associates, using standard econometric models and data from government publications and private sector sources. In addition to national data, the Association has compiled easy-to-read economic impact findings for each state that are available online.
The national and state-specific reports separate the data into three categories: Direct (manufacturers, wholesalers, distributors, and retailers of toys and similar children’s products), Indirect (suppliers of raw materials, components, and service suppliers), and Induced (local businesses supported by the re-spending “direct” and “indirect” businesses; calculated using an input/output model of the U.S.).
Approximately 95% of toy manufacturers, wholesalers, and distributors in the U.S. are small businesses. The data found that nearly 80 cents of every toy retail dollar remains in the country as a result of U.S. domestic operations (e.g., production plus wholesale and retail), while about 61 cents of every toy production dollar remains in the country (e.g., salaries, benefits, and material costs).
Toy Association members with questions regarding the economic impact data may contact Anne McConnell, senior director of market research & data strategy.