Dolls, Toys and Games Industry Profile
Definition of the Industry
This sector comprises establishments primarily engaged in manufacturing dolls, toys and games. Examples of such products include airplane models, chessboards and pieces, electronic toys and games, kites, handicraft supplies, stuffed toys and children's tricycles and vehicles. This industry is classified under the North American Industry Classification System (NAICS) code 33993.
|Economic Indicators||2004||2005||2006||2007||2008||% Change
|Source: Statistics Canada, Trade Data Online.
CAAGR: Compound Average Annual Growth Rate
Apparent Domestic Market = Shipments plus Imports minus Exports
Manufacturing Intensity Ratio (MIR) = Gross Domestic Product (GDP) divided by Shipments
For GDP and MIR: CAAGR is for the 2004–2007 period, % 04–08 provides percentage change for 2004–2007
Import Penetration = Imports divided by ADM
Export Orientation = Exports divided by Shipments
Domestic Market Share = Shipments minus Exports divided by ADM
Labour Productivity = GDP divided by Employment (in thousands of $ CAD), CAAGR is for the 2004–2007 period
Employment: CAAGR is for the 2004–2007 period
|Apparent Domestic Market||1,972.5||2,255.3||2,411.7||3,003.3||3,226.8||7.4%||13.1%|
|Gross Domestic Product||128.4||154.2||131.7||104.3||n.a.||-20.8%||-5.1%|
|Manufacturing Intensity Ratio||58.6%||85.2%||64.9%||67.2%||n.a.||3.6%||3.5%|
|Domestic Market Share||-0.2%||0.2%||3.3%||1.4%||2.9%||103.9%||n.a.|
The Canadian dolls, toys and games industry has experienced a mixed performance in its economic activity between 2004 and 2008. While the domestic market for the industry remains healthy at $3.2 billion, with a compound average annual growth rate (CAAGR) of 13.1 percent between 2004 and 2008, this increase in demand has been met by a CAAGR of 12.2 percent in imports during the same period. Import penetration (the percentage of the domestic market comprised of imports) is among the highest of all manufacturing industries in Canada and stood at 97.1 percent in 2008.
Despite the strong import penetration for this industry, shipments showed an average annual increase of 0.9 percent between 2004 and 2008, with a particularly strong increase of 46.1 percent between 2007 and 2008. With a domestic market share of 2.7 percent however, Canadian dolls, toys and games production still accounts for an extremely small portion of the market. Still, the increase in shipments represents a major reversal in performance (possibly in response to concerns over the safety of imported products). In contrast to this increase in shipments, GDP for the sector declined in the 2004 to 2007 period.
Exports of dolls, toys and games declined in the 2004 to 2008 period, dropping by an annual average of 12.3 percent. However, between 2007 and 2008, exports showed a significant reversal, increasing 17.9 percent. Despite this increase, the export orientation for this sector (i.e., the percentage of shipments that are exported) dropped significantly, suggesting that exports increased, a greater percentage of products were being consumed domestically. The U.S. remains Canada's largest export market, accounting for over 90.0 percent of exports in 2008. The next largest export markets in 2008 included Germany, Mexico and the U.K. In contrast, imports showed a marked increase over the entire 2004 to 2008 period largely attributed to the increase in imports from China (from $1.4 billion to $2.5 billion). In 2008, China represented the largest share of Canadian imports of dolls, toys and games accounting for 81.0 percent. The U.S. is the next largest foreign supplier, with a 10.3 percent share of Canadian imports.
In 2008 there were 609 enterprises in Canada involved in manufacturing dolls, toys and games, 139 of which had one or more employees in 2008. Of these, only one establishment, Mega Brands, was considered "large" (i.e., over 500 employees). The remaining enterprises fall into the small and medium-sized enterprise category.
Product safety and the growth of counterfeit goods are issues of growing concern for the sector. Canadian manufacturers will need to respond to changing safety regimes to be competitive in the global marketplace.
For some individual sub-sectors (e.g., tricycles, scooters, doll carriages, dolls representing humans and their parts/accessories, construction sets, toy musical instruments, and video games), the number of larger importers is quite low and averages 15. These importers also tend to be the larger importers such as Canadian Tire, Walmart, Toys "R" Us, Hudson's Bay, Mattel Canada, Sears, and COSTCO. However, for other sub-sectors (e.g., electric trains, model kits, stuffed toys, and puzzles) where goods are sold in hobby, specialty and gift shops the number of importers can range from 20 to almost 100.
There are two Canadian industry associations related to the dolls, toys and games industry. The first is the Canadian Toy Association, formerly known as the Canadian Toy Manufacturers Association, which represents the interests of the Canadian manufacturers, distributors and importers of toys, games, seasonal decorations and hobby products. Its members account for 80% of domestic sales of these products.
The second is the Canadian Toy Testing Council (CTTC), a non profit, voluntary, registered charitable organization, which was created in 1952. The goal of the CTTC is to test toys to help consumers make informed purchases. As part of their toy testing program, hundreds of toys are selected each year as representative of those being offered on the market. These toys are then tested by Canadian children in everyday settings, to assess design, function, durability and play value. One can find the ratings and a review of each toy tested in editions of the TOY REPORT, published by the CTTC.
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