Dive Brief:
- Over half of all the toy industry growth from January through April of this year came from women, according to a new report from Circana.
- Overall, toy consumption is being driven by adults, with consumers aged 18 and over accounting for 35% of the total industry growth.
- The U.S. toy industry has experienced 13% dollar growth year over year from January through April. Additionally, unit sales increased 5%, and average selling price was up 7%.
Dive Insight:
The toy industry is bucking discretionary spending trends, with a strong start to 2026.
This year is a “unique intersection of resilient demand and evolving consumer behavior,” Kristen McLean, vice president of client insights for Circana’s Entertainment Knowledge Group, said in a statement.
Adults in particular have been driving category growth for a while. For the first few months of the year, a strong category performance has meant that toys have stood out among discretionary product categories, per Circana.
Newer trends, including squishy products like NeeDoh, are shaping demand. Squishy toys have delivered triple-digit growth in both dollars and units sold, according to the report. Discount retailer Five Below saw a lift in the first quarter due to the viral impact of that toy category. In Q1, net sales increased over 32% to nearly $1.3 billion, while comparable sales increased by nearly 23%. Games and toys were part of the catalyst to that growth, in particular due to the “overall squishy trend,” CEO Winnie Park said.
Social media is showing particular influence on toys, with TikTok Shop representing 1% of total retail sales and 3% of e-commerce sales, with toys, hobbies and collectibles ranking as the third-largest category on the platform.
“Strong retail performance and social-driven discovery are transforming sensory toys from a niche segment into a scalable growth category,” McLean said in a statement. “Fueled by ASMR content, unboxing videos, and the excitement of hunting for limited editions, these products are resonating with consumers across age groups and reinforcing the growing influence of social commerce on toy demand.”
Entry-level price points are under pressure, though, as the toy market is seeing a shift toward mid-tier and premium brands, per Circana.
Shoppers have signaled a willingness to buy pricer toys since last year, according to earlier reports.
