Mexico expands U.S. toy market share as China imports decline

Mexico is increasingly capturing market share in the United States toy industry as companies diversify supply chains away from China. According to data from the United States International Trade Commission (USITC), Mexico's share of U.S. toy imports rose from 2.3% in 2022 to 8.5% between January and July 2026.

During the same period in 2026, Mexico became the third-largest supplier of dolls, toys, and games to the U.S., with imports totaling $884 million, a 13.2% increase from the previous year. In contrast, U.S. imports of toys manufactured in China fell by 20.9% annually to $5.596 billion. While China still maintains a 53.7% share of the market, its dominance has declined significantly from levels near 80% seen between 2022 and 2024.