Circana Reports on First Half 2024 Global Toy Industry Retail Sales

It’s no secret to those of us in the licensing industry that toy sales have been in a slump. Licensing International (LI), in its recently released 2024 Global Licensing Industry Study, says the U.S. toy industry needed a jolt following a weak year in 2022. LI reports the biggest decline in a product category this year was in the licensed toy category, which experienced a -3.5% decline and the toys/games market overall declined -4.5% worldwide.

Circana, a leading consumer behavior advisor, released toy sales performance figures for the first half of the year across 12 global markets (G12), including Australia, Belgium, Brazil, Canada, France, Germany, Italy, Mexico, Netherlands, Spain, the U.K. and the U.S. Across the G12, dollar sales declined by 1% from January through June this year, versus the same period in 2023, to $24.5 billion, while the average selling price was on par with last year at $11.57 billion, according to Circana’s Retail Tracking Service. 

So far this year, four of the 11 toys super categories tracked by Circana experienced a year-over-year sales increase within the G12. Building sets continue as the main driver behind the industry performance with 20% sales growth, followed by explorative and other toys, up 5%, and plush and vehicles each growing by 1%. 

Related:Licensed Consumer Products Grow to $356.5B

Despite a steep decline of 19% year-to-date at the global box office, as reported by Box Office Mojo, film-related licensed toys accounted for 32% of the total toy market (value sales) in the first half – which is 5 percentage points higher than the same period in 2021 – and sales grew by 6% compared to 2023. Licensing International points out that the trend of classic and long-standing intellectual properties taking both the box office and the toy aisle by force was reignited in 2023.

This has certainly held true recently. License Global reported that after three weeks in theaters, “Deadpool and Wolverine” has become the second billion-dollar film of the year. According to Box Office Pro, with an additional $57.8 million take in 52 international territories, “Deadpool & Wolverine” sprinted past the $1 billion global milestone with $1,029.5 billion over the weekend. The film has produced licensed products in numerous categories, including collectibles and apparel. Pixar’s “Inside Out 2” was also a success, currently sitting at $1,593,756,948 globally. Prior to that film’s release, Just Play released a new line of “Inside Out 2” toys that included collectibles and plush. 

Toys don’t necessarily have to be tied to a film to do well. Pokémon is still in first position among the top brands and licenses globally for the fourth year running. Filling out the remaining top-five properties are Squishmallows (Jazwares), “Star Wars’ (Disney), Marvel Universe (Disney) and Hot Wheels (Mattel). These properties are, however, challenged by innovative new and expanding brands adapting to the ever-changing consumer. The top-five gaining properties so far this year include LEGO Icons, which is targeted at older consumers, the NBA sports license, the new collectible line, Miniverse, from MGA Entertainment, the children’s cartoon, “Bluey,” (BBC) and various Disney hits.

“After a difficult year in 2023, when inflation began taking a heavy toll on consumer spending, Circana is pleased to report that toy sales have stabilized in the first half of 2024, in terms of both value and units sold, as average prices hold steady with last year,” says Frédérique Tutt, global toys industry advisor, Circana. “We continue to observe strong momentum with older consumers, especially adult fans and collectors who have re-discovered play and are very engaged with the category. As we move through the second half of the year and prepare for the holiday season, we expect to see more new products being launched that will deliver excitement for children and adults alike. The industry will continue to gain traction in product categories, including building sets, plush, robotic interactive pets and collectibles.”