NPD: U.S. Toy Industry Sales Flat in 2022

The following article is based on a press release issued by The NPD Group on January 26, 2023.

January 26, 2023 | U.S. toy industry sales generated $29.2 billion in 2022, a decrease of 0.2 percent year over year, or $49 million, according to The NPD Group. Unit sales declined by 4 percent and the average selling price (ASP) was 3 percent higher than in 2021. The NPD Group tracks approximately 78 percent of the U.S. toy retail market, capturing point-of-sale data at major retailers (but not specialty, gift, vacation, and other toy sellers).

While U.S. toy sales remained relatively flat in 2022, the market has seen strong growth over the last three years, contributing to a three-year compound annual growth rate of 10 percent, says NPD.

“Ten percent average growth over the past three years of extreme pandemic-related management challenges and economic headwinds for both manufacturers and retailers demonstrates the resilience of the U.S. toy industry,” said Steve Pasierb, president & CEO of The Toy Association. “Even if up against a strong 2021 that saw 14 percent growth on top of 2020’s 17 percent increase, The Toy Association and our diverse members are all about growth and not satisfied beating estimates of a 2022 decline by simply being flat.”

During the fourth quarter, dollar sales decreased 5 percent, or $628 million; unit sales declined 5 percent; and there was no change in ASP.

“After three record-breaking years for the toy industry, 2022 was a challenging year. U.S. consumers were forced to endure significant economic headwinds stemming from inflation and adverse macroeconomic factors,” said Juli Lennett, vice president and toy industry advisor at The NPD Group. “While these headwinds certainly impacted overall consumer behavior, the toy industry still managed to finish the year on a positive note as spending kept pace with the previous high-water mark of 2021.”

Four of the 11 supercategories NPD tracks grew in 2022, including plush (increase of 31 percent year over year), explorative and other toys (+16 percent), building sets (+8 percent), and action figures and accessories (+4 percent).

While outdoor and sports toys continued to be the largest supercategory with $5.2 billion in sales, the category overall declined 11 percent year over year, contributing to 52 percent of the overall toy industry sales decline.

The top toy properties of 2022 included Pokémon, Barbie, Marvel, Star Wars, Squishmallows, Fisher-Price, Hot Wheels, L.O.L. Surprise!, LEGO Star Wars, and Melissa & Doug. These top ten properties collectively grew 7 percent, while the rest of market declined 2 percent.

“Inventors and toy companies are driving forward innovative products that will capture the attention of parents and children alike in 2023 while retailers are paying close attention to selection and strengthening both in-store and on-line consumer experience,” Pasierb continued. “From the spark of an idea through to the experience of a child playing with a new toy, it takes every step of the process and everyone across the toy and play community to create the progress we all expect.”