The Toy Association released predictions for the largest trends in 2024 because the troubled industry tries to recoup losses from 2023. The toy industry trade association compiled an inventory of the largest trends retailers and manufacturers should plan for this yr.
The Toy Association: 4 trends for 2024
1. Sustainability
Consumers increasingly care about sustainability, which is now a typical concern when purchasing toys, the association said. Nearly half (45%) of fogeys under age 40 consider the environmental impact of a toy when making purchasing decisions, it present in a recent survey of U.S. parents.
“In 2024, toymakers will prioritize sustainability not only as a commitment to using eco-friendly materials, but additionally as a holistic approach aligned with these evolving consumer values,” said Kristin Morency Goldman, senior director of strategic communications at The Toy Association. Some toys aligned with this trend will address environmental aspects directly, like a new edition of Settlers of Catan that asks players to have interaction with ecological events and make decisions between fossil fuels and clean energy. Other traditionally plastic toys will advertise using plant-based materials.
Consumers are most concerned with the sturdiness aspect of sustainability, in line with a 2023 Deloitte Sustainable Consumer report. To that end, toy makers can even emphasize the craftsmanship of toys and their ability to be repurposed as children age.
2. Fantasy and mystery
Goldman pointed to a “resurgent cultural interest in spooky, mystery, and horror genres across movies, TV, and literature” driving this trend. The Toy Association named the Netflix series “Wednesday” a top media property to look at. The show surpassed “Stranger Things” to develop into the top-viewed English-language Netflix series in its first week. Mattel signed a multi-year licensing deal to supply toys based on the series for its Monster High and Little People lines. As well as, Mattel relaunched the Monster High line in 2023 and said it was the best growth property amongst its doll category.
One other high-profile property, Harry Potter, can even drive sales on this toy category, the association said. Goldman pointed to the Talking Sorting Hat toy sold by Lego debuting within the spring.
3. Sports
Consumers increasingly prefer toys that teach a skill and incorporate screen-free play, said Jen Lynch, content developer at The Toy Association. 65% of fogeys said they need toys that help construct a skill, per a survey from the association. The group predicts a lift in popularity for sports toys, bolstered by the 2024 Summer Olympics. Sports is the highest-selling category inside toys, accounting for $4.5 billion in 2023, even though it also saw the best sales declines, down 16%.
The Toy Association expects Pickleball to be popular, together with recent Nerf offerings from Hasbro and other sensory toys.
4. Anime
Toys based on media properties proceed to be popular, and anime is the following area poised to grow, the association predicts. Anime reached recent mainstream audiences in recent times, propelled by an interest in escapism through the pandemic. One in 4 parents said in a survey that they’re more likely to buy children toys based on an anime franchise.
The genre is increasingly accessible through streaming services, making it more precious, Lynch said. “Naruto” and “One Piece” are probably the most sought-after licenses, she said. This category also gives retailers a chance to focus on “kidults,” who engage with anime on social media and buy toys for themselves.
State of the toy industry
2023 was a difficult yr for toy retailers. Sales were depressed going into the vacations, which is frequently the predominant event for the industry driven by end-of-year sales and gifting. The fourth quarter typically accounts for about 70% of U.S. toy sales, in line with retail research firm Coresight Research.
Holiday sales weren’t enough to make up for declines all year long. 2023 toy sales declined 8% from 2022 to 2023, totaling $28.0 billion, in line with research firm Circana.
The Toy Association didn’t make explicit overall sales predictions for 2024. Nevertheless, there’s hope that slowing inflation and lower rates of interest might need an impact on toy sales later within the yr, it said.
Mattel’s results
Toy retailer Mattel outperformed the industry as an entire in 2023. It reported net sales grew 16% within the fiscal fourth quarter ended Dec. 31. Sales were flat for the yr.
“Execution on our toy strategy was strong and we made meaningful progress in entertainment across film, television, digital and publishing. We ended 2023 with the strongest balance sheet we have now had in years, putting us in a wonderful position to execute our technique to grow Mattel’s IP-driven toy business and expand our entertainment offering,” CEO Ynon Kriez said. “As we glance to 2024, we imagine we’re thoroughly positioned competitively and can proceed to outpace the industry and gain market share.”
Nevertheless, the retailer anticipates the industry will see further spending decline in 2024.
“We expect the toy industry to say no in 2024, although at a lesser rate than 2023. The anticipated decline is attributable to a lighter toy theatrical film slate and the impact of the shift in consumer spending patterns towards experiences and services, which we imagine will moderate over the yr,” Kreiz said. It predicts growth will resume in 2025.
Mattel ranks No. 205 within the 2023 Digital Commerce 360 Top 1000, a rating of North America’s leading retailers by online sales.
Do you rank in our database?
Submit your data with this quick survey and we’ll see where you slot in our next rating update.
Join
Stay on top of the most recent developments within the ecommerce industry. Join for a complimentary subscription to Digital Commerce 360 Retail News. Follow us on LinkedIn, Twitter and Facebook. Be the primary to know when Digital Commerce 360 publishes news content.
