There is positive news for the U.S. toy industry. Circana, a global company that provides data and analytics regarding consumer behavior, reports that the sector improved from January to September this year. Sales are up 37% — or $4.5 billion — ahead of 2019 sales and should continue to grow through the holiday season.
Building sets are the only category to grow across dollars, units, and average selling price (ASP). LEGO Botanicals primarily drive this growth. LEGO is not alone in growth; explorative toys, plushes, and vehicles — led by NBA trading cards, Hello Kitty, and Monster Jam, respectively — have also increased in growth.
Outdoor toys, dolls, and action figures have declined in growth, but decline rates across dollars and units have decreased compared to January through September 2023. Overall, ASP is up 0.5%, while year-over-year dollar sales are unchanged.
“In the beginning of the year, I coined ‘correction to consistency’ as the theme of 2024, and during the third quarter, the toy industry reached a level of stability that we have been moving towards,” said Juli Lennett, Vice President and Toy industry Advisor at Circana. “However, the positive performances remain within a small group of categories; what’s needed is more stability across the board.”
Holiday spending is expected to increase sales across the board. Consumers are planning to spend 2% more this year than in 2023, according to Circana’s annual Holiday Purchase Intentions Report. Millennials and purchasers with children plan to spend the most this holiday season. “The toy industry may get a boost this holiday season, with 43% of households with children reporting that they will spend more during the holiday season this year compared to last year – more than double that of households without children,” said Lennett. She said other categories, such as clothing, smartphones, and beauty, will challenge the toy industry despite plans to spend more on toys.
