NPD Insight
How will 2020
shape 2021? Rory looks at whether trends formed in 2020 look set to carry forward into this year and assesses how else the UK toy market might develop post-lockdown.
I
What is perhaps more interesting is that the age t has been well documented that the toy market group which added more value to the toy market in performed well in 2020, with +5% growth in 2020 than any other was the 18+ group, growing at the NPD EPOS data. There have been some +11% vs. 2019, adding more than £54m to the UK toy consistent trends, with growth in key categories market. With most of the focus on kids, it’s easy to like Construction, Arts & Crafts, Games & overlook how important adults are to the market; for Puzzles and Outdoor toys. Generally, there was a shift example, they made up over a third of all Games & to higher priced toys that had strong perceived play Another area of the toy market which has received Puzzles value in 2020. Looking closer at that category, value and often educational content, as parents used a lot of attention is the switch to online purchasing, adults added just over £30m in 2020, with over half these items to help with home schooling over the year. with online accounting for 57% of all toy sales in 2020. of that value from Puzzles. Puzzles undoubtedly But were there any surprising growth areas in 2020? We know this was down to a lot of stores being closed benefited from the Covid-19 crisis, helping kids play Let’s use NPD Consumer data to look at some of the for large parts of the year, especially in November. and learn at home. But huge growth in the 18+ age larger shifts in trends for 2020 and look ahead to what range shows that theyears category is also helping adultshalf ofOnline that might mean for 2021.Although the key age groups of 3-5 and 6-9 account for around all or digital also had a significant influence on the toys that were purchased. Traditionally, the make time for adults. themselves and get back into puzzling, toys in 2020, main from Looking at the changing demographics of whogrowth comes biggest influence on toy sales is in-store shop displays, especially with the added positive impact this can received toys in the UK market in 2020 is a good which accounted for nearly 15% of all sales in 2019. have on mental health. The same can be said for the place to start. The two largest age groups 0-2 Years -£15 £500for toys are This figure obviously dropped in 2020, when in-store Construction category, where the 18+ age group added 3–5-year-olds, who account for around a quarter of all displays accounted for £110m less in value than the over £11m in 2020. When we look at the top sellers for 3-5 Years £766represent just over a fifth £5 sales, and 6–8-year-olds, who year before. Conversely, the main gains came from 2020, higher priced items feature prominently, such as of all sales. Both groups saw value increases in 2020, 6-9 Years £855 £8 an average price digital influences, with social media accounting the Lego Technic Bugatti Chiron with consistent with the total market growth. The increases for £24m more, online reviews for £74m more and of £238, and the Lego Technic Porsche 911 RSR with predominantly came from the categories you 10-12 Years £353would £0 websites an additional £24m. Added together, this an average price of £114. We have often spoken of toys expect: Construction and Arts & Crafts. This is in £197 £18 means that digital influences added around £120m being13-17 usedYears as a refuge for kids during lockdown, but line with the theory that toys were used during home more to the toy market in 2020. The categories that perhaps we can say the same for adults. schooling to help parents and to provide 18+ Years £549 time away £54 are most influenced by digital are Dolls, Games & from screens. Puzzles and Arts & Crafts. Many of the Value £m Value Change £m big winners of 2020 are not only being Source: The NPD Group | Consumer Panel| U.K. | Full year 2020 vs. 19 purchased online, but also influenced Document classification: Client/Third Party Confidential The NPD Group, Inc. | Proprietary and confidential 1 by online content, be it YouTube videos, product reviews or just comments on social media pages.
Rory Partis
Director UK Toys & EuroToys NPD
UK Toy Market Growth by Age Group
UK Toy Market Growth by Age Group
Although the key age groups of 3-5 and 6-9 years account for around half of all toys in 2020, main growth comes from adults. 0-2 Years
£500
-£15
3-5 Years
£766
£5
6-9 Years
£855
10-12 Years
£353 £197
13-17 Years
£8 £0 £18
18+ Years
£549 Value £m
£54 Value Change £m Source: The NPD Group | Consumer Panel| U.K. | Full year 2020 vs. 19
Document classification: The NPDClient/Third Group, Party Inc. Confidential | Proprietary
and confidential
Toy World 42
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Market conditions will soon be reverting to a more traditional scenario: the kids are now back at school and retail stores are set to re-open their doors any day. The big question is to what extent the shift the market experienced in 2020 will shape the rest of 2021? Will shoppers be drawn back to stores in the same numbers we have been accustomed to? Will adults continue to use certain toy categories to help them unwind? And with the kids back at schools, what impact will that have on toy sales moving forward? Time will tell, but I think it’s safe to say that some of the trends which emerged in 2020 will remain with us in the long term.
