Unique: August’s Circana insights – Toy World Journal | The enterprise journal with a ardour for toysToy World Journal

Within the August subject of Toy World, Emilie Erktan, senior account supervisor for Toys UK at Circana talked about pressures on the toy market and traits in client spending.

A shift in client traits within the toy market over the previous few years has seen the potential dimension of the market lowering, as pressures resembling lowered birthrate, inflation and the price of residing have mixed to have an effect on client spending on children. Emilie appears to be like at how these traits break down.

Throughout the first half of the 12 months (YTD June), UK toy market gross sales have been down -4% in worth, reflecting a difficult begin to the 12 months. Nevertheless, the general efficiency improved in each Might and June, with unit gross sales flat, boosted by gross sales of soccer playing cards and stickers associated to the UEFA Euro 2024 Match, plus the robust efficiency of licensing general.

The market has seen a shift in client traits over the previous few years. With fewer kids being born, the potential dimension of the core goal market is shrinking, whereas spending on children has lowered as a consequence of inflation and the price of residing pressures which customers have confronted within the final couple of years. On common, spending per youngster beneath 11 years outdated was £308 for the UK final 12 months, down -7% YOY – the equal of -£22 much less per youngster in comparison with the earlier 12 months. Multiplied by the variety of kids, that generated a discount of -£202 million.

Spending for youthful children, lower than 5 years outdated, skilled the best influence throughout each genders. Along with the declining start price, the second-hand market might also have impacted pre-schoolers’  new toy gross sales. Circana’s Second-Hand survey (carried out in France) found that Toddler/Toddler/Pre-school was the third largest class which was purchased second-hand.

For older kids, Ladies’ Toys spending decreased quicker than Boys for 6-11 years (-11% versus -6% versus 2021 respectively). This can be a concern, as this spend could also be shifting away from the toy business. Ladies are prone to switch spending exterior of toys sooner than boys: to style, magnificence merchandise, music and video video games.

To learn the complete article, which appeared within the August version of Toy World, click on right here.