The American toy industry continues to grow despite the challenges of inflation.
On the heels of Target’s third quarter earnings call this morning, in which the retailer noted the expected recovery in toy demand heading into the holiday shopping season after the “deceleration” in October, new data from the NPD group has emerged for the third quarter.
The US toy industry saw total sales rise 4% in the third quarter, with unit sales up 1%. The average selling price (ASP) of $11.47 marked a 3% increase in the quarter. In the first nine months of 2022, U.S. toy industry revenue climbed 3% while unit sales fell 3% alongside a 6% increase in ASP.
“The performance of the U.S. toy industry in the third quarter continues to amaze us, especially after growing 12% in the same quarter in 2021 and 22% in 2020,” said Juli Lennett, adviser to the American toy industry for NPD.
Looking at the three-year compound annual growth rate from 2019 to 2022, NPD reports that US toy industry sales revenue grew 12% year-over-year, driven by an increase of 8 % of ASP and a 4% increase in unit sales.
Large estates are booming
According to NPD, the top 10 properties in the third quarter collectively rose 10%, compared to a 1% decline in the rest of the market.
“As we’ve seen throughout the pandemic, nostalgic properties have continued to be popular with consumers,” says Lennett. “However, when it came to the fastest growing properties, content was king.”
Top 10 properties in the 3rd quarter
- star wars
- Marvel Universe,
- Hot Wheels
- National Football League (NFL)
- Lego Star Wars
- jurassic world
In terms of revenue growth, NPD says Pokémon, Squishmallows, NFL, Jurassic World, Toy Story/Lightyear, Disney Encanto, Sonic the Hedgehog, Magic Mixies, Gabby’s Dollhouse and Disney All Other led the charge.
According to NPD’s Retail Tracking Service, nine of the 11 tracked supercategories rose in the third quarter. Plush leads the pack with a 27% gain. Only dolls and vehicles slowed down in Q3.