Few playthings manage to delight kids, parents and shareholders alike, but crafts kits are proving the exception. Arts and crafts toys are the second fastest-growing product in the industry, with $1.2 billion worth of sales in 2013. They are easier to use, which pleases kids, and easier to tidy, which thrills parents. On the business end, craft kits are valued as “consumables,” which are quickly used and replaced — and they’re cheap to produce, with companies estimating 50 percent profit margins. Old-school toys may be coming back in style, but the fastest-growing toys are still electronics.
Source: WSJ (sub)