Play prevailed during another year of challenges and uncertainty for the toy industry.
Despite the ongoing supply chain crisis, continued effects of the COVID-19 pandemic, and additional 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 was up 4% versus 2020.
Between 2018 and 2021, the three-year compound annual growth rate for the industry was 8%, driven by an 8% increase in ASP. During that time period, unit growth grew 1%.
“There is no doubt that COVID-19 continued to impact consumer behavior in 2021. The disposable income diverted from other forms of entertainment was a contributor to the industry’s growth as consumers continued to look for ways to entertain their children and themselves,” says Juli Lennett, vice president and industry advisor, toys, The NPD Group. “In addition to this, we also saw fewer promotions, less price sensitivity, and consumers trading up to higher-priced products, all of which helped propel growth for the industry.”
NPD also attributes the growth to two consumer stimulus payments, which added more than $500 billion to consumers’ wallets when spending on travel and leisure was at an all-time low. Additionally, the six child tax credit payments in the back half of 2021 elevated growth in the industry.
All but one of the 11 supercategories that the NPD tracks grew in 2021. Outdoor & Sports toys continues to be the largest supercategory (tracking $5.9 billion in sales in 2021), and Explorative & Other Toys had the fastest-growing dollar growth (35%) and largest dollar gain ($557 million) in 2021 compared to 2020. Youth Electronics declined $2 million, or 4%. And, compared to 2019, Explorative & Other Toys had the fastest growth (24%), followed by Games & Puzzles at 23%.
The top properties of 2021 included Pokémon, Barbie, Star Wars, L.O.L. Surprise!, Fisher-Price, Marvel Universe, Hot Wheels, NERF, LEGO Star Wars, and Little Tikes.
