The Compelling Value of the Global Toy Market

Under the covid-19 pandemic, what happen to global toy market?

Let's see how Frédérique Tutt talk and analyse about this!

Of all the questions asked at NPD, one of the most difficult to answer is "What do you think will happen in the next 12 months?"

I've always been pretty sure what the trends will be and who the "winners" will be during the holiday shopping season. But today, it is much more difficult to predict what will happen before the pandemic. Many markers have been moved. and they keep moving.

WHERE THE MARKET WAS:

The global toy market has grown significantly over the past two years, with around 80% of the growth coming from the United States, a welcome surprise following the hiatus caused by the closure of Toys'R'Us.

However, the pandemic has hit the gaming industry in regions such as LATAM and Europe, especially in the first year with brick-and-mortar closures, people staying at home and fear of uncertainty, to name a few. Fortunately, most markets will begin to return to normal in 2021, with 11 of the 13 global markets monitored by NPD seeing sales reach or exceed pre-pandemic levels.

WHERE THE MARKET IS GOING:

As we head into 2022, the industry's biggest concern is how consumers will continue to manage COVID-19. Are people buying toys at the amount and value they had before the pandemic, or are they still buying at the same price as during the pandemic?

Fast forward to today, the economy and its impact on prices will take precedence.

We face more economic disruption than anything else on record, but you won't necessarily know that if you just look at the gaming industry.

Global toy sales rose 1% in the first four months of this year. Sales in value in all countries tracked by the NPD are higher than sales in 2019, so we are selling more in value than before COVID-19. Apartment sales fell 5%, while the average selling price increased 7%. In other words, we've always seen strong game sales, driven by rising average prices.

I will analyze what I see in the UK as an example. The average price paid for a toy rose 5.1% in March. However, the base price of all toys sold in the previous year, all other things being equal, rose by a record +11.8%, the highest increase among the largest countries in Europe. This is unheard of. This, combined with rising energy costs (electricity bills in the UK are up 50% on last year and petrol up 30%), the war in Ukraine, a certain Continued uncertainty about COVID-19 and supply chain disruptions bring you . expect new cautious consumer behavior.

But what is driving sales today in the UK and around the world? Collect. One in five toys sold worldwide this year is a collectible. Sales value was around 9% and increased 23% year-over-year, in part due to a premium product line.