New movies, video games and YouTube clips inspired by tried-and-true brands led to growth for the US toy industry in Q3 2019. Dollar sales increased 3% to US$3.69 billion in the third quarter, according to data from market research firm The NPD Group.
New content contributed to increases for top growth properties Toy Story, Fortnite, Pokémon, Ryan’s World and Pinkfong Baby Shark. Overall, top properties for the quarter included L.O.L. Surprise!, Marvel Universe, Pokémon and Nerf (pictured).
Four of NPD’s 11 supercategories reported growth during Q3, including action figures and accessories, outdoor and sports toys, games/puzzles and building sets. Sales for the other supercategories declined during the same period. The top-10 properties made up 21% of total industry dollar sales for the US market.
Looking forward to Q4 2019, NPD anticipates continued growth due to weakness in 2018′s fourth quarter following the liquidation of Toys “R” Us locations in the US. (Overall, the US toy industry generated US$21.6 billion in sales in fiscal 2018, a 2% decline compared to 2017.) Additionally, because there are six fewer days between Thanksgiving and Christmas this year, NPD anticipates there will be a surge in toy sales in the final week of the holiday season.
Next year and into 2021, NPD expects growth in the action figures and accessories, arts and crafts, building sets, outdoor and sports, games/puzzles and dolls categories.