Toys and Games

The United States is the largest market for the entire industry, making up 50 percent of the global traditional toy market. The retail market for toys in the U.S. was $28.3 billion in 2024, according to a report by the Toy Association. The U.S. also leads the world in toy development as well as in the marketing, advertising, and promoting of toys. In addition, American toy makers are known for invention and design, and their toys are extremely popular abroad.

The coronavirus pandemic, which started in Wuhan, China, in late 2019, impacted the toys and games industry in 2020, with business closures and social distancing requirements causing an economic slowdown. The industry experienced supply chain disruptions early in the pandemic as a large portion of imports are from China. In spite of this, the U.S. toy, doll, and game manufacturing industry started to rebound in 2021, and from 2021 through early 2024, growth was at a compound annual rate of nearly 4 percent. The research group IBISWorld predicts the toy, doll, and game manufacturing industry will continue increasing in market size from 2025 through 2030. The strengthening economy and rising consumer confidence is expected to increase consumers' purchases of nonessential products, such as toys and games.

During the pandemic, the stay-at-home mandates helped families spend more time together and many of them spent that time playing games together. Many families sought educational toys and activities, family games and puzzles for all age groups, outdoor and active toys, nostalgic brands, cooking-themed and role play toys, and more. Post pandemic, the U.S. online children's sales industry has experienced especially strong growth. Digital shopping rose dramatically during the pandemic and technological advancements and changes in consumer behavior have contributed to growth in this area. From 2019 through 2024, the online children's sales industry grew at an annual rate of 11.6 percent, and strong growth is expected to continue through 2030.

The toy industry is expected to trend away from traditional toys and games and move toward interactive, computerized toys. The majority of these, like traditional toys, are manufactured overseas. As described in an IBISWorld research report, "smart toys will drive future growth with interactive learning. Smart toys blend play with technology, offering interactive learning experiences that engage children in new ways. Features like voice recognition, AI-driven responses, and connectivity to educational apps enhance developmental benefits."

Toy sales in 2024 in the U.S. were $28.3 billion, a slight decrease compared to the previous year's sales, according to a report by The Toy Association. Categories that remained somewhat stable or that experienced growth in 2024 included action figures and accessories, arts and crafts, building sets, games and puzzles, vehicles, and youth electronics. Today, most toys sold in the United States are no longer produced in this country. Thus, while toys and games remain a major U.S. industry, the outlook for new jobs is not entirely positive.

The Bureau of Labor Statistics predicts that industrial designers, who create products such as toys, will experience 3 percent employment growth through 2033, which is slower than the average for all occupations. Designers who have strong knowledge of computer-aided design and computer-aided industrial design will have the best chances of securing work. Multimedia artists and animators, including video game designers, are expected to have average employment growth through 2033, at a rate of 4 percent. There will be steady demand for more realistic video games and visual effects, and job opportunities are also expected to increase for game and application designers for mobile devices.

The U.S. Census Bureau forecasts an increase in the population of children aged 0–17 between 2023 and 2060, which will contribute to growth in toy and game sales. The population of adults aged 18–44 is also expected to increase slightly by 2060, which will contribute to increased revenue in video game sales. Also, the growing world market, which some analysts expect to eventually comprise up to 50 percent of revenue, will have a positive bearing on the toy industry. Internet retailers may be able to reach more customers with a wider variety of products than that available in stores, but it's not yet certain how online sales will affect the entire industry.

The video game industry experienced an increase in revenue during the pandemic, with many people at home and looking for new types of entertainment. Companies such as Activision, Microsoft, Nintendo, and Twitch had tremendous growth during the pandemic, with large increases in subscribers to their games, devices, and accessories. Video game sales in the U.S. in March 2020 alone were $1.6 billion, a year-over-year increase of 35 percent. According to the Entertainment Software Association, total consumer spending on video games in the U.S. in 2024 was $58.7 billion, a decrease from the $59.3 billion in 2023, yet still representing overall an increase from the $28.4 billion spent on video games in 2014. Many video gamers have switched to mobile devices and social media platforms, contributing to the decline in sales of physical games. New gaming consoles are frequently introduced, such as for Xbox and Playstation, which can create more job opportunities for video game professionals. Mobile gaming revenue increased by 9 percent in 2024 compared to 2023, and growth in this particular sector is expected to continue in the coming years.