Dive Brief:
- Shoppers over the age of 18 accounted for more toy sales in the first quarter than any other age group, surpassing preschoolers for the first time, according to a report by Circana. Adults contributed over $1.5 billion in toy sales in Q1.
- Nearly half (43%) of adults purchased a toy for themselves in the past year for a number of reasons including collecting, socialization and enjoyment, per the report.
- Toy sales dropped 1% from January through April year over year, but are 38% above 2019 levels, per the report.
Dive Insight:
Adults are currently driving sales in the toy market.
The pandemic pushed a surge in nostalgia that ultimately led to increased toy sales, and the segment “continues to be an opportunistic area,” according to the report.
“We are in a transformative period across retail sectors as consumers navigate high prices and manage their budgets, and while the toy industry is feeling the heat, it is ripe with opportunity,” Juli Lennett, vice president and toy industry adviser at Circana, said in a statement.
However, some of the biggest toy companies are showing signs of pullback. In its latest earnings, Mattel reported net sales of $810 million, down 1%. The company reported a net loss of $28 million, although it narrowed from $106.5 million in the year-ago quarter. Rival Hasbro’s Q1 revenue fell 24% to $757.3 million, and the company reported a net earnings of $59 million, swinging from a year-over-year net loss of $22 million.
Meanwhile, big-box retailer Target this spring launched a private label toy brand. Budget-friendly Gigglescape offers products for $20 and under, with plush items priced at $10 or less and books for $5.
Last year, global toy sales reached $108.7 billion, according to a separate Circana report.
