Circana Studies Constructive Efficiency for the U.S. Toy Business because the Vacation Increase Begins

There may be optimistic information for the U.S. toy trade. Circana, a worldwide firm that gives information and analytics relating to shopper habits, studies that the sector improved from January to September this yr. Gross sales are up 37% — or $4.5 billion — forward of 2019 gross sales and will proceed to develop by the vacation season.

Constructing units are the one class to develop throughout {dollars}, models, and common promoting worth (ASP). LEGO Botanicals primarily drive this development. LEGO just isn’t alone in development; explorative toys, plushes, and autos — led by NBA buying and selling playing cards, Whats up Kitty, and Monster Jam, respectively — have additionally elevated in development. 

Outside toys, dolls, and motion figures have declined in development, however decline charges throughout {dollars} and models have decreased in comparison with January by September 2023. General, ASP is up 0.5%, whereas year-over-year greenback gross sales are unchanged. 

“To start with of the yr, I coined ‘correction to consistency’ because the theme of 2024, and throughout the third quarter, the toy trade reached a stage of stability that we’ve got been shifting in direction of,” stated Juli Lennett, Vice President and Toy trade Advisor at Circana. “Nonetheless, the optimistic performances stay inside a small group of classes; what’s wanted is extra stability throughout the board.”

Vacation spending is predicted to extend gross sales throughout the board. Customers are planning to spend 2% extra this yr than in 2023, based on Circana’s annual Vacation Buy Intentions Report. Millennials and purchasers with kids plan to spend essentially the most this vacation season. “The toy trade could get a lift this vacation season, with 43% of households with kids reporting that they may spend extra throughout the vacation season this yr in comparison with final yr – greater than double that of households with out kids,” stated Lennett. She stated different classes, resembling clothes, smartphones, and sweetness, will problem the toy trade regardless of plans to spend extra on toys.