Toy industry grows 19% in first half


The U.S. toy industry grew nearly 20% in the first half of 2021, up $ 1.7 billion to $ 11 billion, according to The NPD group. The industry experienced a compound annual growth rate (CAGR) of 9% in dollars and average selling price from 2018 to 2021, but the unit CAGR has remained stable over that four-year period.

Ten of the 11 so-called “super categories” tracked by NPD increased in 2021, led by outdoor and sports toys with sales of $ 2.9 billion – more than double that of games and puzzles , the second highest super-category. Outdoor and sports toys were up $ 280 million, the biggest increase in all 11 categories. Plush toys saw the fastest dollar growth since the same period in 2020, up nearly 40%.

Water-related toys, play equipment, and skates / skateboards / scooters were some of the biggest boosters for outdoor and sports toys. Arts and crafts was the only super category to drop in the past 12 months, down 1% overall, as craft kits – which make up 42% of the super category – have experienced a significant decline.

The two stimulus checks boosted toy sales in the first quarter of the year, and the expanded child tax credit, which began July 15, is expected to pay dividends in the second half of the year.

The industry report comes just a week after toy retail giants Hasbro and Mattel released their quarterly results.

Related news: Barbie and Hot Wheels Boost Mattel Sales as Shoppers Return to Stores

For Mattel, the dolls, including Barbie, recorded $ 395 million in gross billings in the three months ending June 30, a 51% jump from 2020; Barbie alone has grown 41 percent. The vehicles, including Hot Wheels, had gross billings of $ 266 million, a 68% increase based on the increase in impulse shopping in-store. Hot Wheels alone is up 61 percent.

See Next: Digital company helps Hasbro make up for lagging board game sales

Hasbro’s second-quarter revenue was $ 1.3 billion, up 54% from 2020 and 9% from 2019. The Rhode Island-based company said the Consumer product revenues had increased 33% year-over-year, thanks to Nerf, Transformers and Play-Doh products. as well as the Marvel and Star Wars franchises.

Still, global sales declined from the single-digit average as toys saw increased demand – but games, including Monopoly, saw a decline after the pandemic-induced board game frenzy. last year.

The digital games business, which also includes the Wizards of the Coast brand, has seen explosive quarterly growth, with revenue up nearly 118% from 2020 to $ 406 million.

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NEW PYMNTS DATA: 2021 HOLIDAY SHOPPING OUTLOOK

On: It’s almost time for the holiday shopping season, and nearly 90% of American consumers plan to do at least some of their purchases online, up 13% from 2020. The 2021 Holiday Shopping Outlook, PYMNTS surveyed more than 3,600 consumers to find out more about what drives online sales this holiday season and the impact of product availability and personalized rewards on merchant preferences.

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