London, United Kingdom (PRWEB) July 07, 2012
Game and toy manufacturers experienced a volatile market over the five years through 2012-13, with revenue falling by an annualised 4.9%. According to IBISWorld industry analyst Claudia Burgio-Ficca, “trading conditions continued to be affected by foreign-made toys and games, which flooded the domestic market and proved to be tough competition for locally produced goods”. Demand for new orders at the manufacturing level were affected by weak growth in disposable income levels, which reduced the spending power of consumers and made them more price-conscious. This was exacerbated by increasing levels of competition from department stores, multiples and variety stores. An overall decline in the exchange rate between the UK pound and the US dollar (primarily due to effects from the global financial crisis) had a marked impact on the ability of manufacturers to afford inputs on the global market. Trading conditions across the game and toy manufacturing market were also influenced by growth in the size of the UK population aged 1 to 14 years, with this age bracket considered a key market for the industry.
Industry revenue is set to contract by 4.6% to £475.0 million in 2012-13. Burgio-Ficca adds, “toy and game manufacturers will continue to experience a weak trading landscape due largely to slow growth across the UK economy and a rise in import levels”. Sales prospects will also be affected by weaker demand from downstream markets, namely toy retailers. Revenue for toy and game manufacturers will continue to trend downwards over the five years through 2017-18. Revenue prospects will be hindered by several factors including continued strong competition from foreign-made goods, an anticipated rise in the exchange rate between the UK pound and the US dollar (which will aid the importation of foreign-made goods), annual fluctuations in disposable income and the relative share of the UK population aged 14 years and younger.
Game and toy manufacturers have endured a tough trading landscape over the past five years. Falling by an annualised 5.8% through 2012-13, the decline in operator numbers has been driven by a process of consolidation and rationalisation across the industry. Operators have also been affected by continued strong competition on the global market, particularly from China-based manufacturers. In 2012-13, a lack of dominate players across this industry will result in it experiencing a low level of market share concentration.
For more information on the Game & Toy Manufacturing industry, including latest industry trends, statistics, analysis and market share information, purchase the full report from IBISWorld, the nation’s largest publisher of industry research.
IBISWorld industry Report Key Topics
Operators in this industry manufacture games and toys for professional, arcade or personal use. Businesses source raw materials from a number of different suppliers before transforming them into a range of toy and game products including dolls, action figures, board games, wheeled toys and puzzles. It is important to note that the manufacture of automatic bowling alley equipment, video game consoles and bicycles are excluded from this industry.
Key External Drivers
Industry Life Cycle
Products & Markets
Products & Services
Globalisation & Trade
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry
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