While most toy manufacturing is done in developing countries where production costs are low, in an age of collaborative product development and Web-based design capabilities, geography is less of a bar to doing business globally in the toy market than it once was. And the size and sophistication of the market, especially in the interactive sector, continues to create opportunities for processors and moldmakers. The electronics technology that many interactive toy manufacturers use has evolved from other markets. High-tech features are readily embraced in the toy industry. Many of the electronics, moreover, have been refined to the point of commoditization in price and availability, thus providing a critical economic benefit for use.
Toys are a huge business.
Plastics consumption for toys in the U.S. alone was around 1.2 billion lb in 2000, chiefly in polystyrene and polyolefins. While conventional toy markets either grew or posted slight declines in recent years, video game sales increased by leaps and bounds. Video game sales were, to be sure, rising from a relatively low base compared to conventional toys. Nevertheless, the interactivity of video games is proving to be a powerful marketing benefit for new toys, whether used for entertainment or instruction. Rounding out the top 15 best-sellers were conventional toys, mostly dolls.