U.S. toy industry retail sales grew 13% in 2021

The NPD Group today announced the retail sales of toys in the United States generated $28.6 billion in 2021 compared to $25.4 billion in 2020, an increase of 13% i.e. $3.2 billion. Unit sales increased by 8% and the average selling price of $12.37 was up 4% from 2020. The three-year compound annual growth rate for the period between 2018 and 2021 was 8%, driven by ASP growth of 8%. Unit growth over this period was a more modest 1%.

PORT WASHINGTON, NY, January 27, 2022 /PRNewswire-PRWeb/ — The NPD Group today announced retail sales of toys in the United States $28.6 billion in 2021 compared to $25.4 billion in 2020, an increase of 13% i.e. $3.2 billion. Unit sales increased by 8% and the average selling price of $12.37 was up 4% from 2020. The three-year compound annual growth rate for the period between 2018 and 2021 was 8%, driven by ASP growth of 8%. Unit growth over this period was a more modest 1%.

For the second consecutive year, the COVID 19 pandemic had a strong impact on consumer behavior, which supported the toy industry in 2021. Two consumer stimulus payments added more than 500 billion dollars wallets at a time when travel and leisure spending was at an all-time low. Moreover, the six child tax credit payments in the second half of 2021 also accelerated the growth of the industry.

“There is no doubt that COVID-19 continued to impact consumer behavior in 2021. Disposable income diverted from other forms of entertainment has contributed to industry growth as consumers have continued to look for ways to entertain their children and themselves,” said Juli Lennett, Vice President and Industry Advisor, Toys, The NPD Group. “On top of that, we’ve also seen fewer promotions, less price sensitivity, and consumers shifting to more expensive products, which has helped propel industry growth.”

2021 Highlights

In terms of supercategory performance, ten of the eleven supercategories tracked by NPD saw growth in 2021. Compared to 2019, all supercategories posted a positive 2-year CAGR. Outdoor and sports toys remained the largest supercategory with $5.9 billion sales in 2021 while the Explorative & Document classification: NPD Internal Only 2 Other Toys recorded the largest dollar gain of $557 million. It also recorded the fastest dollar growth over 2020 of 35%. The only absolute dollar decline from 2020 came from Youth Electronics which was down -0.4% or $2 million.

Looking at compound annual growth rates over 2019, Explorative & Other Toys saw the fastest growth at 24%, followed by Games/Puzzles at 23%. Top 2021 properties included Pokémon, Barbie, Star Wars, LOL Surprise!, Fisher-Price, Marvel Universe, Hot Wheels, Nerf, LEGO Star Wars, and Little Tikes.

Source: The NPD Group/Retail Tracking Service, January-December 2021

Media Contact

Eric BauerThe NPD Group, 416-587-4185, [email protected]

SOURCE The NDP Group

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