Table of Contents
Executive Summary
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- Market overview
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- Figure 1: US retail sales of traditional toys and games, at current prices, 2017-19
- Top takeaways
- Impact of COVID-19 on toys and games
- Impacts on toy and game manufacturers
- Impacts on toy and game brands
- Impact on toy and game consumers
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- Figure 2: Level of category threat (red, yellow, green), April 2020
- Key consumer trends
- Parents are key consumers for purchase, but kids drive interest
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- Figure 3: Item recipients, by recipient, March 2020
- Consumers are purchasing outside of the holidays
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- Figure 4: Purchase intent outside of major holiday season, March 2020
- Gender neutral purchases are driven by practicality
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- Figure 5: Purchase influencers – Is gender neutral, by child’s gender, March 2020
- Figure 6: BMC Toys plastic army women project prototypes, January 2020
- Consumers prioritize toys that combine fun and education
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- Figure 7: Purchase influencers – Promotes STEM skills, by age of children, March 2020
- Reinventing is key to industry growth
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- Figure 8: Fortnite NERF Instagram post, February 2020
- Figure 9: Behaviors toward nostalgia and character merchandise, March 2020
- What’s next
The Impact of COVID-19 on Toys and Games
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- What you need to know
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- Figure 10: Short, medium and longer term impact of COVID-19 on toys and games, May 2020
- Opportunities and threats
- Short-term threats
- Short-term opportunities
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- Figure 11: Time spent per day – At school, February 2020
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- Figure 12: Limited edition Mask doll Frontline Hero Collection, April 2020
- Figure 13: Here’s to our heroes!, April 2020
- Medium-term threats
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- Figure 14: Time Spent per day – Leisure activities, February 2020
- Medium-term opportunities
- Longer-term threats
- Long-term opportunities
- Impact of COVID-19 on the toys and games market
- Initial boost in sales…
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- Figure 15: Top toy and game category growth in Q1 of 2020, April 2020
- …followed by a small decline
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- Figure 16: Coronavirus spending habits, April-May 2020
- How the crisis will affect adults with kids and adults without kids
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- Figure 17: Mintel Trends Drivers
- Wellbeing
- Experiences
- How a COVID-19 recession will reshape the toy and game industry
- Unemployment will impact long-term spending
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- Figure 18: Initial unemployment claims, weekly, seasonally adjusted, January 2020 – June 2020
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- Figure 19: Consumer confidence and unemployment, 2000-May 2020
- Birthrate drops mean a shrinking market
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- Figure 20: Annual births and general fertility rate, 2006-18
- COVID-19: US context
The Market – What You Need to Know
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- While some segments grow, overall market decreases
- Consumers prefer in-store purchases
- Both kids and adults are target markets
- Unemployment will affect spending
Market Size
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- Even with recent sales declines, market outlook is positive
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- Figure 21: US retail sales of traditional toys and games, at current prices, 2017-19
Market Breakdown
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- Outdoor toys have a chance to rebound
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- Figure 22: US retail sales of traditional toys and games – Percentage of market, by segment, at current prices, 2017-19
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- Figure 23: US retail sales of traditional toys and games, by segment, at current prices, 2017-19
Market Perspective
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- Consumers prefer to purchase toys and games in-store
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- Figure 24: Retailers shopped, March 2020
- In-store purchasing grows while online is hit or miss
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- Figure 25: Differences in retailers shopped, July 2018-March 2020
- Pandemic leads to screen time concerns
- Kids spend their own money on toys
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- Figure 26: Leisure spending, by age groups, February 2020
Market Factors
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- Unemployment will drag down median income
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- Figure 27: Median household income, in inflation-adjusted dollars, 2007-18
- Company cost cutting will continue
Key Trends
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- Brands are staying relevant by reinventing
- Toy partnerships
- Diversity and neutrality
- Toys and games are going green
- COVID-19 will increase category purchases
- Playtime changes during and after COVID-19
What’s Happening Now
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- Play-Doh takes advantage of “oddly satisfying”
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- Figure 28: Play-Doh New Compounds Instagram post, November 2019
- Toy influencers now own the products they pitch
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- Figure 29: Ryan’s World Toys at Walmart post, August 2019
- Figure 30: Ryan’s World Mystery Egg post, July 2019
- Figure 31: Behaviors toward toys and games – My child watches unboxing videos, by age of children, March 2020
- Toys with adult components for kids
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- Figure 32: KidKraft Alexa 2-in-1 Kitchen and Market, February 2020
- Figure 33: Hot Wheels Cybertruck Instagram post, February 2020
- Video games are becoming physical toys
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- Figure 34: Halo NERF Instagram post, February 2020
- Figure 35: Minecraft Earth Boost Minis Twitter post, February 2020
- Reverse engineering characters
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- Figure 36: DreamWorks Trolls World Tour Instagram post, April 2020
- Surprises will continue to surprise
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- Figure 37: New Color Reveal Barbie Dolls, December 2019
- Figure 38: Blume Dolls Instagram post, December 2019
What’s Happening Next
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- Llamas are the new “it” animal
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- Figure 39: Lili Llama Musical Toy TOTY award finalist, November 2019
- Thinking beyond race and reading between the lines of gender
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- Figure 40: Barbie diversity Twitter post, January 2020
- Figure 41: Creatable World All Welcome Instagram post, September 2019
- “Gender neutral” toys are just toys now
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- Figure 42: BMC Toys Plastic Army Women Project Prototypes, January 2020
- Evolution of environmentally friendly toys
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- Figure 43: Wild Republic EcoKins Instagram post, August 2019
- Sustainability in toy rental programs
- Purchasing local
Trends as a Result of COVID-19
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- Board games and puzzle sales are on the rise
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- Figure 44: Ellen puzzle post, March 2020
- Outdoor toys bounce back
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- Figure 45: Little Tikes Leap Day Instagram post, February 2020
- Parents will look to blend school and leisure through STEM
- Want for “experiences” may decrease post COVID-19 due to health concerns
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- Figure 46: Behaviors toward toys and games – I would rather buy an experience than a toy or game, by parental status, March 2020
- Kids will be more independent and play on their own
The Consumer – What You Need to Know
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- Kids drive purchasing
- Adults look to relax and to be challenged
- Family makeup can affect purchasing
- A trusted brand name is essential
- Birthdays are a year-round major holiday
- STEM is still important
- New and old characters resonate
Toys and Games Purchased
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- Top toys and games
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- Figure 47: Items purchased, March 2020
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- Figure 48: Number of toy types purchased, March 2020
- Areas of growth and decline
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- Figure 49: Percentage point difference of items purchased, July 2018-March 2020
- Gender roles in toy and game buying
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- Figure 50: Items purchased, by gender, March 2020
- Less category interest for Black adults
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- Figure 51: Items purchased, by race, March 2020
Who Toys and Games Are Purchased For
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- Children remain the dominate recipients for toys and games
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- Figure 52: Item recipients, March 2020
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- Figure 53: Item recipients, March 2020
- More popular for kids, less popular for adults, and vice versa
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- Figure 54: Item recipients, by recipient, March 2020
- Consumers buy more for their own kids
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- Figure 55: Item recipients, by type of child recipient, March 2020
- Adults are purchasing for themselves
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- Figure 56: Item recipients, by adult recipient, March 2020
Kids’ Role in Toy Buying
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- Parents are more likely to purchase
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- Figure 57: Items purchased, by parental status, March 2020
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- Figure 58: Count of toy types purchased, by parental status, March 2020
- Families with younger children are purchasing more toys
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- Figure 59: Repertoire of items purchased, by age of children, March 2020
- More children equals more toys and games
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- Figure 60: Items purchased, by parental status, March 2020
Retailers Shopped
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- Mass merchandisers
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- Figure 61: Retailers shopped, March 2020
- Mass merchandisers fill the specialty toy gap
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- Figure 62: Percentage point difference of retailors shopped, July 2018-March 2020
- Race affects which mass merchandiser consumers shop
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- Figure 63: Retailers shopped, by race and Hispanic origin, March 2020
Important Factors When Purchasing
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- Brand name is the most important
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- Figure 64: Purchase influencers, March 2020
- Value in reaching both kids and adults
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- Figure 65: TURF analysis – Purchase influencers, March 2020
- Diversity is top of mind of non-White consumers
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- Figure 66: Children of the World Memory Game Instagram post, December 2019
- Figure 67: Our People of Colors art supplies Facebook post, February 2019
- Figure 68: Purchase influencers – Promotes diversity, by race, March 2020
- Gender neutral more important for parents who have both boys and girls
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- Figure 69: Hot Wheels Belle Beauty and The Beast Disney Character Cars, April 2020
- Figure 70: Purchase influencers – Is gender neutral, by child’s gender, March 2020
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- Figure 71: Behaviors toward toys and games – Gendered toys, by child’s gender, March 2020
- Growing with the child is only important for younger kids
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- Figure 72: Purchase influencers – Grows with my child, by age of children, March 2020
Who Influences Purchases
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- Parents ask their children, and other adults ask the parents
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- Figure 73: Purchase influencers, by parental status, March 2020
- Combination of kids and social media influencers is powerful
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- Figure 74: Behaviors toward toys and games – Social media influence, by age of children, March 2020
- Frequent toy purchasers are more influenced by media
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- Figure 75: Behaviors toward toys and games, by repertoire of items purchased, March 2020
Purchasing Outside of the Holiday Season
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- Birthdays are their own major holiday
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- Figure 76: Purchase intent outside of major holiday season, March 2020
- What motivates parents
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- Figure 77: Purchase intent outside of major holiday season, by parental status, March 2020
- Celebrating small holidays
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- Figure 78: Purchase intent outside of major holiday season, by age of children, March 2020
- Moms are more gift driven
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- Figure 79: Purchase intent outside of major holiday season, by gender, March 2020
Educational Toys
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- Educational components are more important for young kids
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- Figure 80: Crayola Paper Flower Science Kit, February 2020
- Figure 81: Design & Drill: Bolt Buddies by Educational Insights, February 2020
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- Figure 82: Items purchased – Educational toys, by age of children, March 2020
- Figure 83: Purchase influencers – Promotes STEM skills, by age of children, March 2020
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- Figure 84: Purchase intent outside of major holiday season – As a learning tool, by age of children, March 2020
- Asian consumers make STEM a priority in toy buying
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- Figure 85: Purchase influencers – Promotes STEM skills, by race and Hispanic Origin, March 2020
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- Figure 86: Purchase intent outside of major holiday season – As a learning tool, by race and Hispanic origin, March 2020
- Adults with higher education are more concerned with STEM
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- Figure 87: Purchase influencers – Promotes STEM skills, by education, march 2020
Characters in Toys and Games
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- Old and new characters are both popular
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- Figure 88: Behaviors toward nostalgia and character merchandise, March 2020
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- Figure 89: Behaviors toward nostalgia and character merchandise, March 2020
- Figure 90: Baby Yoda toy announcement, December 2019
- There is safety in delayed character buying
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- Figure 91: Behaviors toward nostalgia and character merchandise, March 2020
- Dads connect with kids through characters
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- Figure 92: Behaviors toward nostalgia and character merchandise, by gender and parental status, March 2020
- Older characters appeal to all generations
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- Figure 93: Behaviors toward nostalgia and character merchandise, by generation, March 2020
Appendix – Data Sources and Abbreviations
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- Data sources
- Sales data
- Consumer survey data
- Direct marketing creative
- Abbreviations
- Abbreviations
Appendix – The Consumer
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- Figure 94: Table – TURF analysis – Purchase intent outside of major holiday season, March 2020
- Methodology
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