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Diving certificate:
Diving insight:
The trend in toy sales is different from a year ago. Last year, sales in the category declined due to a number of factors, including inflation, reduced customer savings and rising consumer credit card debt.
While the first half of 2024 was strong, Circana warns that some of the same factors could cause stumbles in the second half of the year.
“As toy sales begin to stabilize in 2024, the tide is turning for the industry as we move from a state of correction to one of permanence,” Juli Lennett, vice president and U.S. toy industry advisor at Circana, said in a statement. “It’s important to note, however, that there are no guarantees the second half of the year will be smooth. While inflation has begun to cool, the unemployment rate, record consumer debt, student loan repayments and fluctuating consumer confidence should be closely watched as they provide insight into how consumers are feeling and potentially changing their spending.”
Three toy categories saw growth in the first six months of the year: construction sets (sales up 25%), discovery toys (up 9%) and the vehicles category. Squishmallows dominated the list of best-selling toys in the first half of the year, with five different products appearing in a top 10 list. Mattel Hot Wheels and the Lego Group’s Icons Bouquet of Roses and Icons Tiny Plants also made the list.
Adults help keep sales high: This group contributed over $1.5 billion in toy sales in the first quarter alone.
One of the largest toy makers, Mattel, reported flat net sales last quarter and did not respond to questions about whether private equity firm L Catterton is currently pursuing a takeover. Rival Hasbro is reportedly considering its own bid for Mattel, even though second-quarter sales fell 18% year-on-year.
