GM Thought of the Week – Global Growth in Toy Market
The latest report from the NPD Group has revealed that toy industry sales reached $18.4 billion in the first half of 2018; a 4% increase compared with the same period of 2017.
The market research firm tracks data across 13 international territories – Australia, Belgium, Brazil, Canada, France, Germany, Italy, Mexico, Netherlands, Russia, Spain, United Kingdom, and United States.
The growth was driven by collectables, with this specific category growing by 26% and accounting for 11% of total sales. MGA’s L.O.L Surprise! was the main catalyst and the number one property in terms of $ sales. However other brands such as Pokémon and PAW Patrol also contributed. Fingerlings pushed the Youth electronics category to surge by 29%. Overall growth was also further boosted by the FIFA World Cup with Panini stickers driving an increase in the miscellaneous category of 12%.
Looking at specific markets, Mexico (15%) and Brazil (11%) both experienced double-digit growth. Meanwhile, North America keeps the mantle of the largest region, fuelled by the US (7%). Asia has seen the most rapid expansion – 21% in 5 years. Contrastingly, Europe saw an overall net decline of 1% but improvements were seen in Germany, Russia, Italy & Spain.
So, what does this tell us? For advertisers the encouraging news of course is that demand for products is continuing to rise and has been doing so now since 2012. A rise in global spend per (child) capita has also led the NPD to forecast the toy market globally to hit $99 billion in sales by 2022. Insights into popular trends within the industry both in categories such as collectables, gaming and social media as well as specific themes such as dinosaurs and unicorns can be explicitly seen and measured. The report also reveals huge growth opportunities outside of the established domestic markets for both retailers and manufacturers, some which are already being exploited, as seen by the growth in South America for example.
Thomas Jameson, Associate Director of Finance