The Lego World made nearly $8.5 billion in 2021. A Japanese toy company, Bandai Namco, made $7.3 billion. In 2017, Namco Bandai had the greatest yearly revenue among toy businesses with revenues of $6.38 billion. Regional variations within the US significantly impact toy companies’ profitability. By examining variations, we identify potential hotspots for entrepreneurs. The average profit margin on toys is 23.3% to 25.9%. If a product costs $5 to make, it sells for $10 to retailers who sell it for $15-$20. Despite challenges, in 2022 Mattel generated $5.4 billion in revenue. The global toy market size may reach over $120 billion by 2023. The US toy market’s size reached $27 billion in 2019. One of the best-selling toys ever is Furby. LEGO is often celebrated as the most successful toy brand. The company was founded in 1932 by Ole Kirk Kristiansen in Denmark. He started crafting wooden furniture and houses.
- MGA Entertainment: $9.15 billion
- Lego: $6.99 billion
Retailers like Walmart and Amazon take a large toy and game market share. In the US, the average toy price is $10. With about 3 billion units sold yearly, estimated US direct toy sales are $27 billion. In 2020 the world toy market revenue was $94.7 billion. The US toy industry size in 2020 was $32.6 billion.
How profitable is the toy industry? The industry has grown steadily, with demand increasing.
Market Size and Growth
The global toy industry is expected to grow at 4.4% CAGR from 2021-2026.
Determine Profitability
To determine profitability, earn more than expenses within months. Record monthly expenses and income to see if you’re meeting goals. Adjust as needed. With toy manufacturing you can earn over $100,000 per year.
Toy Prices and Sales
- Average US toy price: $10
- Estimated direct US toy sales with about 3 billion units sold yearly: $27 billion
What Toy Company Makes the Most Money?
The biggest toy company, The Lego Group, banks the largest share of this industry’s revenue. Lego made nearly $8.5 billion in 2021. Bandai Namco, a Japanese toy company, followed closely with $7.3 billion.