It’s a tale of two similarly challenged toy markets, as US and Canadian retailers continue to deal with economic pressures that are shaping the post-pandemic landscape.

New York-based market research firm NPD Group has dropped new toy sales data for 2022 showing that both regions are in a state of status quo. In the US, retail toy sales for 2022 ended up at US$29.2 billion, representing a 0.2% decrease from the previous year. And they only grew in Canada by 1% to US$1.78 billion.

Both markets are still reeling from pandemic-era trends that saw toy sales rise as families were forced to entertain themselves at home. In Canada, the category’s total take climbed steadily for four years, from US$1.37 billion in 2019 to US$1.78 billion last year. And this trend was mirrored in the US over the same timeframe, with a US$7-billion rise from 2019 to 2022.

But a flattening of the curve was well telegraphed and anticipated, as consumers faced challenges such as inflation, rising interest rates and ongoing COVID disruptions. These factors hobbled holiday season spending last year. In Q4, US toy sales in general decreased by 5% (US$628 million), NPD notes.

The toy categories that performed best in 2022 were more of less the same on both sides of the border. Outdoor and sports toys sales came out in the lead, with building sets, games/puzzles, infant/toddler/preschool toys and dolls rounding out the top five.

The top category in terms of growth was also the same in both markets—plush toy sales were up 41% in the US and 31% in Canada. Other categories that saw big increases last year were action figures and accessories (up 20% in Canada) and explorative & other toys (up 16% in the US).

Kids and families across North America shared similar tastes in brands too. The top-selling IPs in both countries last year were Pokémon, Star Wars, Barbie, Marvel, Squishmallows, Fisher-Price, Hot Wheels, L.O.L. Surprise! and LEGO Star Wars. In Canada, the final property in the top-10 was PAW Patrol, while in the US it was Melissa & Doug.

Juli Lennett, NPD’s VP and toy industry advisor, offered a hopeful outlook for 2023 in the US report. “Like last year, 2023 will bring about bright moments and deep groans. With a more significant theatrical calendar this year, compared to the last three years, the US toy industry will be poised to enjoy the fruits of several tentpole movies. However, if inflation and other adverse macroeconomic factors linger later in the year, or become worse, we can expect to see families pulling back on the number of toys they purchase or trading down to lower price-points.”

Image courtesy of The NPD Group.