January 27, 2022 – NPD Group – The NPD Group today announced U.S. retail sales of toys generated $28.6 billion in 2021 compared to $25.4 billion in 2020, an increase of 13% or $3.2 billion. Unit sales increased 8% and the average selling price of $12.37 was up 4% vs 2020. The three-year compound annual growth rate for the period between 2018 and 2021 was 8%, driven by ASP growth of 8%. Unit growth during that period was a more modest 1%.

For the second year in a row the COVID 19 pandemic had a strong impact on consumer behavior, which propped up the toy industry in 2021. Two consumer stimulus payments added more than $500 billion to wallets at a time when spending on travel and leisure was at an all-time low. Additionally, the six child tax credit payments in the back half of 2021 also elevated growth in the industry.

“There is no doubt that COVID-19 continued to impact consumer behavior in 2021. The disposable income diverted from other forms of entertainment was a contributor to the industry’s growth as consumers continued to look for ways to entertain their children and themselves,” said Juli Lennett, vice president and industry advisor, Toys, The NPD Group. “In addition to this, we also saw fewer promotions, less price sensitivity, and consumers trading up to higher priced products, all of which helped propel growth for the industry.”

Read more at NPD Group.