Economy Politics Country 2025-12-06T13:27:09+00:00

Argentine Toy Industry Crisis Ahead of Christmas

The Argentine toy industry warns of a severe crisis caused by economic issues, demographic shifts, and a flood of cheap imports. Manufacturers and retailers face falling demand, negative margins, and the risk of closure.


Argentine Toy Industry Crisis Ahead of Christmas

The toy industry is warning of a crisis it is facing due to the economic and commercial situation in Argentina, just two weeks before Christmas. "The industry is going through one of the most delicate moments in recent decades, marked by profound demographic changes, cultural shifts in the way people play, and an economic and commercial context that simultaneously impacts national production, importers, and retail trade," stated the Argentine Chamber of the Toy Industry (CAIJ). The chamber listed the factors affecting the sector and, at the end, presented a series of demands to help the industry stay afloat. Decline in the child population. The CAIJ, which brings together toy and game manufacturers in the country, warns of the falling fertility rate. Since 2015, it has dropped from 2.4 to 1.4 children per woman, representing a 42% decrease, structurally reducing the child population and the potential demand for toys. In parallel, they indicate that digital devices "compete with physical, creative, and social play, displacing time and interest in traditional toys." "The concentration is the highest in the last 20 years," highlights Furió. If board games, outdoor articles, and party items are included, the total volume reaches 28.4 million kilograms, and the current year is shaping up to be the year with the highest product intake in two decades (above the peak in 2018). This further distorts the market: prices are generated below sustainable levels, payment terms are modified, and the continuity of companies of all sizes is put at risk. Consumption: prices, tickets, and shopping habits. The average purchase amount shows a downward trend and a search for the lowest prices. Average ticket in neighborhood stores: 22,000 pesos. Average ticket in large chains: 49,000 pesos (over 90% imported). Estimated general average ticket: 35,000 pesos. 85% of transactions are made with a credit card, reflecting the need for financing in a context of loss of purchasing power. Urgent Demands from the CAIJ. Finally, the Toy Chamber requested a series of measures, stating that the combination of a saturated market, insufficient controls, and low-value products without traceability "is taking the industry to extreme levels of idle capacity." "It puts both national production and formal importers who do meet the required standards at risk". The list of demands requested by the Argentine Chamber of the Toy Industry. Strengthen controls at the border, especially given the increase in imports and the entry of uncertified articles. Demand that all publications on platforms include conformity marking, including the QR code with AR and two tildes, which guarantees traceability and regulatory compliance. Ensure traceability and intensify oversight throughout the territory, both in physical stores and in online channels. Control low-value and under-invoiced imports that enter without certification, distort prices, and generate tax evasion. Guarantee fair competition conditions between the national industry and formal importers. Protect children against unsafe articles that do not comply with current toy safety standards. Unequal structural competition. CAIJ expresses its disadvantage compared to China, where labor, environmental, and energy costs are "significantly lower and there are export incentives that distort international prices." This asymmetry deepens unfair competition and compromises the sector's sustainability. Among other factors, they account for the smuggling of toys, which explains 30% of the market and has spread in different regions of the country. "Cases of bazaars and general stores are recorded that periodically travel to border areas to supply themselves with goods entered without control, generating unfair competition, tax evasion, and, above all, a serious risk for families, as these products do not meet any safety standards." Among one particular case, they mention a business in Córdoba that acquired a school microbus and uses it every 15 days to load products entered without control in the north of the country. Businesses in crisis and factories at the limit. "The industry has 6 out of 10 machines stopped without producing," details the president of the CAIJ. Halago's (Quilmes): closed its physical store to the public after years of activity, continuing only as a virtual store. Lilián (Trelew): a toy store with nearly 50 years of history. Rossier (Escobar): closed in October 2025 after almost 40 years on Rivadavia Street at 500, facing the bus terminal.