It’s official: U.S. toy industry sales fell 8% year-over-year in 2023.
Circana’s final numbers reflect a dip in total dollar sales for the year but reinforce the strength of the industry, which has grown 26% since 2019, picking up an additional $5.7 billion since the pre-pandemic era.
While 2023 was a challenging year for the U.S. toy industry, the four-year compound annual growth rate remains positive. Economic challenges have impacted overall consumer behavior, but let’s not overlook the fact that we have seen an influx of new consumers over the past few years. Keeping these consumers interested with new and exciting products is important for driving future growth.”
The industry saw gains in average selling price (ASP), which spiked, on average, by 6%, year-over-year, over the past four years.
As reported by Lennett in our fall Toy Fair issue, last year’s “rebalance” saw headwinds from a variety of factors that aren’t entirely done leveling out yet.
“Consumers will continue to face financial pressures in 2024, but they will not forgo the important toy-buying occasions throughout the year,” Lennett says. “To succeed in 2024, a focus on marketing, seasonality, innovation, and value is critical.”
2023 Highlights
Just three of the 11 tracked supercategories — Building Sets, Plush, and Vehicles — grew last year, though just two — Dolls and Youth Electronics — declined from 2019.
Big brands driving growth last year include LEGO’s Icons, Disney Classics, and Speed Champions (Building Sets); Pokémon, Furby, Harry Potter, Snackles, Sesame Street, and Cookeez Makery (Plush); and Hot Wheels, Teenage Mutant Ninja Turtles, and The Fast and The Furious (Vehicles).
Top Toy Properties of 2023
- Pokémon
- Barbie
- Squishmallows
- Star Wars
- Marvel
- Hot Wheels
- Fisher-Price
- LEGO Star Wars
- Disney Princess
- Melissa & Doug
Look for a deep dive into last year’s performance alongside predictions for 2024 in The BIG Toy Book, available February 26!
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