US toy industry grows 13% in 2021 • The Toy Book

Source: Adobe Stock

Play prevailed in another year of challenges and uncertainty for the toy industry.

Despite the ongoing supply chain crisis, the lingering effects of the COVID-19 pandemic, and other unpredictable factors, U.S. toy retail sales totaled $28.6 billion in 2021, compared to $25.4 billion in 2020, according to The NPD Group. In addition to the 13% sales increase, unit sales increased 8% and the average selling price (ASP) of $12.37 increased 4% from 2020.

Between 2018 and 2021, the industry’s three-year compound annual growth rate was 8%, driven by an 8% increase in ASP. During this period, unit growth increased by 1%.

“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 themselves and their children,” 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.”

NPD also attributes the growth to two consumer stimulus payments, which added more than $500 billion to consumer wallets when travel and leisure spending was at a historic low. Additionally, the six child tax credit payments in the second half of 2021 accelerated the growth of the industry.

All but one of the 11 supercategories the NDP tracks grew in 2021. Outdoor and sports toys continue to be the largest supercategory (tracked by $5.9 billion in sales in 2021), and outdoor toys Exploration & Others had the fastest dollar growth (35%) and largest dollar gain ($557 million) in 2021 compared to 2020. Youth Electronics was down $2 million, or 4% . And, compared to 2019, Explorative & Other Toys grew the fastest (24%), followed by Games & Puzzles at 23%.

Top properties for 2021 included Pokémon, Barbie, Star Wars, LOL Surprise!, Fisher-Price, Marvel Universe, Hot Wheels, NERF, LEGO Star Wars, and Little Tikes.

About Lola C. Chapman

Check Also

Indian toy industry: Indian toy manufacturers are growing amid rising demand; look at world markets

Government policies such as increasing tariffs on imported toys and requiring BIS certification for imports …