The demand for toys in the US market will slow down in 2023, but these three categories will grow against the trend

It is learned that recently, market research company Circana (formed by the merger of IRI and NPD) released the latest data on the US toy market in 2023, revealing the size, consumption trends and best-selling categories of the US toy market.

Data shows that last year, toy sales in the United States were $28 billion, down 8% year-on-year, continuing the sluggish momentum in the first three quarters and marking the first decline since the outbreak of the epidemic in 2020; U.S. toy sales were 2.315 billion pieces, down 8% year-on-year, continuing the downward trend in 2022 (-2%); and the average selling price of toys was $12.08, a slight decrease of 0.4% from the previous year, also marking the first decline since the outbreak of the epidemic.

Despite the decline in 2023, U.S. toy sales have maintained positive growth for the past four years. Since 2019, driven by an increase in average selling prices (ASPs), total U.S. toy sales have increased by $5.7 billion, an average annual growth rate of 6%.

Juli Lennett, vice president and toy industry consultant at Circana, commented that although 2023 will be a challenging year for the US toy industry, the sales growth rate in the past four years has remained positive. He also pointed out that although economic difficulties have affected consumer behavior, the large amount of purchasing power that has emerged in the past few years cannot be ignored. In addition, consumers' interest in novel products is very important to promote the continued growth of the toy industry.

Of the 11 major toy categories counted by Circana, only three achieved growth in 2023. The building block category had the largest sales increase, with sales increasing by $220 million, or 8%, in 2023. Among them, Lego was the biggest winner, with Lego Icons, Lego Disney Classic, and Lego Speed ​​Champions all very popular.

Plush toys ranked second with sales increasing by $31 million, or 1%. Products driving sales growth in this category included Pokémon, Furby, Harry Potter, Sesame Street, Snackles and Cookeez Makery.

Compared with the previous year, sales of vehicle toys increased by $6 million, a growth of only 0.3%. The best-selling toy cars in this category are Mattel's Hot Wheels toy cars, as well as products related to the "Fast and Furious" and "Teenage Mutant Ninja Turtles" IPs.

Notably, outdoor and sports toys were the category with the largest sales decline in 2023, with sales in the category falling 16% compared to the previous year.

Overall, the top 10 best-selling toy brands in the United States in 2023 include Pokémon, Barbie, Squishmallows, Star Wars, Marvel, Hot Wheels, Fisher-Price, Lego Star Wars, Disney Princess and Melissa & Doug.

Juli Lennett added that while consumers will continue to face financial pressure in 2024, they will not give up buying toys during major holidays, and to be successful this year, toy manufacturers need to focus on marketing, seasonality, innovation and cost-effectiveness.

Editor ✎ Nicole/

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