NPD: U.S. Toy Industry Posts 6 Percent Increase in Q1 2016

May 3, 2016 | Global information company The NPD Group reported that U.S. toy industry sales grew 6 percent (or $206 million) in the first quarter of 2016 compared to the same time in 2015.

NPD Group cited major holidays like Valentine’s Day and Easter as catalysts for the increased sales, with Valentine’s Day week sales growing by 9 percent compared to last year. Easter week also saw big earnings, with a 6 percent increase. 

“As is typically the case, there were many contributors to Q1 growth, from properties such as Star Wars and Shopkins to the influence of content, whether it is through a movie, television, or YouTube. In addition, this year confirmed that Valentine’s Day and Easter are both occasions that are increasing in importance for the toy industry,” said Juli Lennett, senior vice president and U.S. toys industry analyst at the NPD Group, in a press release. “While the toy industry experienced the fastest growth in January, its dollar growth was the highest in March, largely due to the Easter holiday.”

Eight of the 11 toys supercategories posted gains, with Action Figures and Dolls seeing the highest dollar growth.

According to NPD Group information, products in the Outdoor & Sports Toys supercategory – which include playground equipment, water-based toys, and sports activities and games – were the biggest sellers in the Easter period.  The dollar share of all these categories is nearly twice as high during Easter week compared to the average for the rest of the year.

Lennett said the size of many of Easter week’s top 10 items are small enough to fit in an Easter basket.

“These items are also smaller in terms of price point; the average retail price of a toy for Easter was 38 percent less than the average price of a toy in 2015,” she noted. “Each holiday and spending occasion is unique, and given these ebbs and flows, it’s important for retailers and manufacturers to be in sync with how consumers are shopping and spending during key points throughout the year.”

Visit the full press release here.

U.S. data is representative of retailers that participate in The NPD Group's Retail Tracking Service. NPD’s current estimate is that the Retail Tracking Service represents approximately 80% of the U.S. retail market for Toys.