NPD: U.S. Toy Industry Sales Increase 5 Percent in 2016

The following article contains excerpts from a press release issued on January 25, 2017 by The NPD Group.

January 25, 2017 | U.S. toy sales grew by 5 percent in 2016 as compared to the prior year, reaching $20.4 billion, according to retail sales data from The NPD Group. The industry was 16 percent larger in 2016 than 2013, which calculates to a compounded annual growth rate of 5 percent.

The sales data is representative of retailers that participate in The NPD Group's Retail Tracking Service, which represents approximately 80 percent of the U.S. retail market for toys. Projected to 100 percent of the market, the U.S. toy industry is now estimated at about $26 billion.

“The toy industry is continuing on the strong and steady path of success it has paved for itself over the last few years. Innovation is coming to consumers in many forms, and the question of ‘where should we go next?’ is as crucial as ever for toy manufacturers and retailers,” says Juli Lennett, NPD’s senior vice president and U.S. toys industry analyst, in a press release.

Collectibles were a top contributor to the industry’s 2016 growth, with sales growing 33 percent, or $432 million year-over-year, to reach $1.8 billion. Collectibles represent 9 percent of total toy industry dollars.

Outdoor & Sports Toys experienced the largest dollar gains of any super-category, at $328 million. Leading this growth were sports and summer seasonal toys.

Games rose 21 percent for the year, or $307 million, with games for children as well as adults all showing growth.

Games/Puzzles, Dolls, and Outdoor & Sports Toys were among seven out of NPD’s 11 super-categories that posted gains in 2016, and were the fastest-growing at 18 percent, 10 percent, and 10 percent, respectively.

A number of properties helped grow the toy industry in 2016. Star Wars outperformed its 2015 sales, reaching nearly $760 million in 2016 and maintaining its position as the top property, based on dollar sales. Coinciding with the Pokémon GO phenomenon and Pokémon Moon and Pokémon Sun video games, Pokémon was the top growth property of the year in toys. Further illustrating the impact of licensed content on toy sales, three of the 10 top-growing properties had tie-ins from movies released in 2016: Trolls, Batman v Superman, and Finding Dory. 

NPD said overall retail performance was mixed this holiday season. Consumers began the holiday shopping season by taking advantage of early Cyber Monday online promotions during Thanksgiving/Black Friday week, but sales took a downward turn during the first three weeks of December, until last-minute shopping kicked in.

“Another year of positive sales growth in 2016 underscores the vitality and inventiveness of toy companies,” says Steve Pasierb, president & CEO of the Toy Industry Association (TIA). “The diversity of great products continues to not only exceed consumer expectations, but also spark interest in new offerings, fresh uses of technology, and exciting forms of play. TIA’s more than 950 member companies across the nation are at the vanguard of this creativity that drives annual growth, while the onus is on us all to continue to bring children the joy and developmental benefits of play.”