EUROMONITOR
TOY TRENDS SET TO EVOLVE IN 2017 Top Trends to Watch in the Global Traditional Toys and Games Industry by MATTHEW HUDAK, toys and games analyst, Euromonitor International
COLLECTIBLES BECOME A KEY SELLING POINT Collectible toys were a major seller in 2016, with brands such as Shopkins and Hatchimals benefitting greatly from this. These toys not only rely on having a large collection of toy types for children to collect, but also
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a random payoff element where kids do not know exactly which type they will get with each purchase. This helps encourage repeat purchases, and releasing new products to collect allows toy makers to keep kids interested. Given the success of brands in this space, it is very likely that more toy companies will want to enter this random payoff model of toy selling, possibly releasing products as brand extensions of existing popular lines. EMERGING MARKETS BEGIN TO RECOVER Macroeconomic volatility and a strengthening U.S. dollar in 2015 negatively impacted emerging markets. As 2016 found a greater level of stability, emerging market toy sales are expected to be healthier, growing 4 percent to reach $28 billion. 2017 is likely to continue this trend of economic stabilization, with emerging markets expected to gain momentum and grow 5 percent within the year. China will once again be a leader in absolute value growth for emerging markets,
Global Traditional Toys and Games Sales: 2015-2017
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Retail value sales
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and will be bolstered, albeit moderately, by the formation of multi-child middle-income households following the end of the one child policy in 2015. STEAM STILL A PARENTAL FOCUS In 2016, science, technology, engineering, arts, and mathematics (STEAM) toys were still very much a focal point for parents. STEAM sales grew 4 percent to reach sales of more than $30 billion. Parental investment in STEAM products could grow even more in 2017 due to the large number of enticing computer programing and educational toys being released into the market. As many new jobs continue to focus on computer proficiency, parents are increasingly focused on educating their children early in this area. LICENSING MOVES BEYOND STAR WARS In 2016, licensing in the earlier part of the year was impacted by spillover sales of Star Wars merchandise, but by the end of the year the focus was on a greater variety of licenses. New movies, such as Trolls, and the resurgence of popularity of the Pokémon brand created greater licensing competition even with the release of Rogue One: A Star Wars Story. This year, however, with another movie release in the core Star Wars franchise of films, it is possible the brand could once again eclipse its competitors. »
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2016 HAS BEEN ANOTHER STRONG YEAR of toy sales, with the global traditional toy market growing more than 3 percent to reach $83 billion for the year. Last year saw the rise of collectibles, a recovery in the emerging toy market, continued growth of STEAM toys, and more competition for licensed toys without the looming shadow of the Star Wars franchise. These trends all had different factors behind them and are expected to carry on and evolve in different ways in 2017. They will collectively help this year grow at the same level of 3 percent constant value growth, with the market reaching slightly more than $85 billion.
Matthew Hudak is a toys and games analyst for Euromonitor International. In his role, he researches and writes on the global market for toys and video games, and drives analysis on the ever-evolving ways children and adults play.
Source: Euromonitor International
toybook.com | FEBRUARY 2017 | THE TOY BOOK 65