Toys “R” Flat Circana estimates total 2022 retail
Description: Toys R Flat Circana estimates total 2022 retail sales for the US toy market were 40.0 billion, or a 4.7 YOY increase; however, more specific research from Circana, representing 76 of the market, shows 29.2 billion in total sales or a
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slide2. Toys “R” Flat Circana estimates total 2022 retail sales for the US toy market were $40.0 billion, or a 4.7% YOY increase; however, more specific research from Circana, representing 76% of the market, shows $29.2 billion in total sales or a 0.2% YOY decrease.
The combination of inflation and boosts to toy sales during 2020 and 2021 when families had thousands in stimulus dollars depressed today’s market. Circana reported 2022-unit sales decreased 4% YOY while the average selling price increased 3% YOY.
A positive sign was the 8.1% increase in retail sales at “hobby, toy and game stores” (NAICS 45112) during Q4 2022 compared to Q4 2021, according to the US Census Bureau; however, sales at those stores were flat during the first half of 2023 compared to 2022.<br>
slide3. Toy Trends for the Holidays The Toy Association’s annual Toy Trends & Products Review revealed adults, seniors and children 12 and older are discovering the value of play. The association expects more tweens and teens to buy collectibles and tech toys, driven by social media engagement.
Toy consumers are also attracted to toys that teach social responsibility, diversity and sustainability and the manufacturers that have made this practice part of their company/corporate culture are benefiting.
More science, technology, engineering, arts and math (STEAM) toys will likely be 2023 holiday gifts. The National Geographic Microscope Science Lab and LEGO CITY Lunar Space Station are two of 25 receiving official approval from the association.<br>
slide4. Early Insights for Holiday Shopping Although there are only a few early forecasts for 2023 holiday shopping and spending, living with inflation for many months will compel even more shoppers to look for special offers, discounts and product bundling.
This trend is reflected in the recent Nfinite Holiday Shopper Report, in which 66% of surveyed consumers said they would be actively seeking product discounts, 56% are more likely to shop in discount stores and 42% will shop during specific sales events.
A June 2023 MediaPost survey of 490 moms found 31% of them said they will start holiday shopping during August and 35% during September. Almost all of them (94%) will be using a mobile device for the convenience of brands’ and retailers’ apps.<br>
slide5. More Toy Shoppers’ Insights Provoke Insights’ Spring/Summer 2023 Retail Insights Report mirrors the forecast for less holiday spending as 26% of the surveyed consumers said they had purchased toys during the last month but 21% said they plan to purchase them during the next three months.
The survey also revealed 22% of consumers expect to “buy toys at the same rate” during the current economic climate, 38% said they “could live without buying toys for a little while” and 41% said they “could easily cut the purchase of toys.”
Consumers also told Provoke Insights they were very price-conscious when purchasing toys, with those 16% second only to airline tickets at 34% on a list of 14 products.<br>
slide6. Gen Alphas and Their Parents Gen Alphas are children 9 years of age and younger. According to Morning Consult’s A Brand’s Guide to Gen Alphas, 70% of Gen Alpha parents are Millennials, 60% have less than a college education and 43% have a household income of less than $50,000.
While 57% of surveyed Gen Alpha parents said their children were better off than previous generations for creativity/innovation and 55% for education/schooling, 37% said their children were worse off for mental health and 33% for physical health.
Half of Gen Alpha parents “strongly agree” (20%) or “somewhat agree” (30%) their children benefit from digital learning. The combined percentages, however, were greater among African Americans (63%) and Latinx Americans (59%) than Caucasian Americans (47%).<br>
slide7. Children and Their Video Habits With children having so much influence over household purchases, including toys, understanding their content consumption habits is critical. A Q2 2023 Precise TV survey of children 2–12 and their parents found 86% of the children watch YouTube.
Of the 12 content-consumption categories in the survey, only “watch TikTok” (32% to 38%) and “go to a movie theater” (20% to 24%) increased from 2022 to 2023. Even #1 YouTube decreased very slightly, from 87% to 86%.
Unsurprisingly, only 34% of the children and their parents said they were watching broadcast TV. Maybe worse yet, the survey revealed 60% of kids said they recalled commercials on YouTube, compared to 28% on broadcast TV.<br>
slide8. Advertising Strategies Fewer children and their Millennial parents may be watching less broadcast TV but more of the children’s grandparents are. Toys, games and hobbies retailers can benefit from TV ad messages featuring specific products that target older adults.
Radio may not seem a good ad medium for toys but it can be for commercials that feature testimonials from parents (and grandparents) about their satisfying shopping experience at a toys, games and hobbies retailer.
Toys, games and hobbies should consider a “parents-only toy fair” one or more weekends during the holiday shopping season. Highlight STEAM toys and toys that are being manufactured more sustainably.<br>
slide9. New Media Strategies It’s clear from the Precise TV survey that toys, games and hobbies retailers will benefit from some presence on YouTube. Creating and posting short videos of new products and how best to interact with them is one strategy to capture the attention of children.
Toys, games and hobbies retailers shouldn’t overlook the increasing number of adults who also like games and hobbies. Social media is a prime channel to reach Millennials but email marketing campaigns can also be effective featuring specials on products for adults.
The MediaPost survey results cited on page 2 of the Profiler indicate the importance of mobile marketing to reach mothers during the holiday shopping season. Although local toys, games and hobbies stores may not have an app, they can offer digital coupons.<br>
The combination of inflation and boosts to toy sales during 2020 and 2021 when families had thousands in stimulus dollars depressed today’s market. Circana reported 2022-unit sales decreased 4% YOY while the average selling price increased 3% YOY.
A positive sign was the 8.1% increase in retail sales at “hobby, toy and game stores” (NAICS 45112) during Q4 2022 compared to Q4 2021, according to the US Census Bureau; however, sales at those stores were flat during the first half of 2023 compared to 2022.<br>
slide3. Toy Trends for the Holidays The Toy Association’s annual Toy Trends & Products Review revealed adults, seniors and children 12 and older are discovering the value of play. The association expects more tweens and teens to buy collectibles and tech toys, driven by social media engagement.
Toy consumers are also attracted to toys that teach social responsibility, diversity and sustainability and the manufacturers that have made this practice part of their company/corporate culture are benefiting.
More science, technology, engineering, arts and math (STEAM) toys will likely be 2023 holiday gifts. The National Geographic Microscope Science Lab and LEGO CITY Lunar Space Station are two of 25 receiving official approval from the association.<br>
slide4. Early Insights for Holiday Shopping Although there are only a few early forecasts for 2023 holiday shopping and spending, living with inflation for many months will compel even more shoppers to look for special offers, discounts and product bundling.
This trend is reflected in the recent Nfinite Holiday Shopper Report, in which 66% of surveyed consumers said they would be actively seeking product discounts, 56% are more likely to shop in discount stores and 42% will shop during specific sales events.
A June 2023 MediaPost survey of 490 moms found 31% of them said they will start holiday shopping during August and 35% during September. Almost all of them (94%) will be using a mobile device for the convenience of brands’ and retailers’ apps.<br>
slide5. More Toy Shoppers’ Insights Provoke Insights’ Spring/Summer 2023 Retail Insights Report mirrors the forecast for less holiday spending as 26% of the surveyed consumers said they had purchased toys during the last month but 21% said they plan to purchase them during the next three months.
The survey also revealed 22% of consumers expect to “buy toys at the same rate” during the current economic climate, 38% said they “could live without buying toys for a little while” and 41% said they “could easily cut the purchase of toys.”
Consumers also told Provoke Insights they were very price-conscious when purchasing toys, with those 16% second only to airline tickets at 34% on a list of 14 products.<br>
slide6. Gen Alphas and Their Parents Gen Alphas are children 9 years of age and younger. According to Morning Consult’s A Brand’s Guide to Gen Alphas, 70% of Gen Alpha parents are Millennials, 60% have less than a college education and 43% have a household income of less than $50,000.
While 57% of surveyed Gen Alpha parents said their children were better off than previous generations for creativity/innovation and 55% for education/schooling, 37% said their children were worse off for mental health and 33% for physical health.
Half of Gen Alpha parents “strongly agree” (20%) or “somewhat agree” (30%) their children benefit from digital learning. The combined percentages, however, were greater among African Americans (63%) and Latinx Americans (59%) than Caucasian Americans (47%).<br>
slide7. Children and Their Video Habits With children having so much influence over household purchases, including toys, understanding their content consumption habits is critical. A Q2 2023 Precise TV survey of children 2–12 and their parents found 86% of the children watch YouTube.
Of the 12 content-consumption categories in the survey, only “watch TikTok” (32% to 38%) and “go to a movie theater” (20% to 24%) increased from 2022 to 2023. Even #1 YouTube decreased very slightly, from 87% to 86%.
Unsurprisingly, only 34% of the children and their parents said they were watching broadcast TV. Maybe worse yet, the survey revealed 60% of kids said they recalled commercials on YouTube, compared to 28% on broadcast TV.<br>
slide8. Advertising Strategies Fewer children and their Millennial parents may be watching less broadcast TV but more of the children’s grandparents are. Toys, games and hobbies retailers can benefit from TV ad messages featuring specific products that target older adults.
Radio may not seem a good ad medium for toys but it can be for commercials that feature testimonials from parents (and grandparents) about their satisfying shopping experience at a toys, games and hobbies retailer.
Toys, games and hobbies should consider a “parents-only toy fair” one or more weekends during the holiday shopping season. Highlight STEAM toys and toys that are being manufactured more sustainably.<br>
slide9. New Media Strategies It’s clear from the Precise TV survey that toys, games and hobbies retailers will benefit from some presence on YouTube. Creating and posting short videos of new products and how best to interact with them is one strategy to capture the attention of children.
Toys, games and hobbies retailers shouldn’t overlook the increasing number of adults who also like games and hobbies. Social media is a prime channel to reach Millennials but email marketing campaigns can also be effective featuring specials on products for adults.
The MediaPost survey results cited on page 2 of the Profiler indicate the importance of mobile marketing to reach mothers during the holiday shopping season. Although local toys, games and hobbies stores may not have an app, they can offer digital coupons.<br>