Industry Overview and Current State
The Mexican toy industry is expected to close 2025 with a growth estimate of between 3.5 and 4%, according to Miguel Ángel Martín González, president of the Asociación Mexicana de la Industria del Juguete (Amiju). He anticipates sales of around 2,900 million USD in the domestic market and between 1,300 and 1,500 million USD in exports.
Tariff Concerns and Their Impact
Despite the positive outlook, Martín González expressed concerns about tariffs on imported raw materials and plastic components, which could increase the final price of toys by 10-20%. This would negatively affect the industry’s competitiveness.
Currently, Mexico produces about 50% of the necessary components for toy manufacturing. The remaining materials are sourced from the United States, Canada, and Asian countries.
“We have to seek machinery, accessories, and chips from other countries, and with the implementation of these tariffs, we will be at a disadvantage compared to our competitors,” Martín González emphasized.
However, he expressed optimism about ongoing discussions with the administration to address these concerns. “We hope that next year, the specific case of our industry will be analyzed with more care,” he said.
New Tariffs and Their Implications
Starting January 1, 2026, new tariffs will take effect due to the reform of Mexico’s Ley de Impuestos Generales on Importation and Exportation.
For toys, a 30% import tax will be applied, while plastics and their manufactures will face increases of 5-50%. These measures primarily target products from countries without trade agreements with Mexico, such as China and other Asian economies, according to EY, a consulting firm.
“Our main opportunity lies in exports; bringing lines and producing for the United States. The challenge is to address the tariffs that raise costs and reduce our competitiveness,” Martín González highlighted.
The U.S. market consumes 40,000 million USD worth of toys annually, but it lacks a genuine production industry. Instead, brands like Disney and Warner Bros own the licenses, with manufacturing primarily in China. These companies are relocating their production lines away from China due to trade tensions between the Asian country and the U.S.
Mexico, with its geographical proximity to the U.S. market, skilled labor force, and available technology, presents an attractive destination for relocating production lines.
Popular Toys and Market Trends
Martín González explained that toys based on movie and video game characters continue to be the most sought-after.
Fashion in the toy industry lasts about eight weeks, after which new products or characters emerge. This constant demand for innovation compels the industry to adapt rapidly.
Today, artificial intelligence and other technologies enable the creation of more innovative toys in less time. There are approximately 30,000 toys designed to cater to various age groups’ preferences and needs.
Most imported toys come from Vietnam, Turkey, and China. In exports, for example, LEGO toys sold in the U.S. and Canada are produced in Mexico, as well as Kinetic Sand, manufactured by Industrias Plásticas Martín, which reaches 24 countries.
Around 30% of Mexico’s production is intended for export, while the remaining 70% is for domestic consumption.
Opportunities and Challenges
The FIFA World Cup represents an opportunity for the Mexican toy industry, according to Martín González.
During this event, specific products like large-headed player figurines (cabezones) and other football-inspired toys, as well as World Cup elements, are manufactured.
“We anticipate a significant sales peak, particularly in the football niche,” he stated.
Key Questions and Answers
- What is the projected growth of Mexico’s toy industry by 2025? The Mexican toy industry is expected to grow between 3.5 and 4% by 2025.
- What concerns the industry regarding tariffs? Tariffs on imported raw materials and plastic components could increase toy prices by 10-20%, negatively impacting competitiveness.
- What percentage of toy components does Mexico produce? Mexico produces around 50% of the necessary components for toy manufacturing.
- What are the primary sources of imported toy components? The remaining 50% of components are sourced from the United States, Canada, and Asian countries.
- What new tariffs will affect the toy industry starting in 2026? Starting January 1, 2026, a 30% import tax will be applied to toys, and plastics and their manufactures will face increases of 5-50%.
- What opportunities does the U.S. market present for Mexico’s toy industry? The U.S. market, lacking a genuine production industry, offers opportunities for Mexico to produce and export toys, taking advantage of its geographical proximity, skilled labor force, and available technology.
- What are the most popular toys in the Mexican market? Toys based on movie and video game characters remain the most sought-after.
- What significant event presents an opportunity for the Mexican toy industry? The FIFA World Cup offers opportunities for manufacturing specific football-related toys.
