NPD Forecasts That Canadian Toy Industry Will Grow 7.3 Per Cent in 2015
Toronto, ON, September, 1 2015 – In the first half of 2015 the Canadian toy industry grew by 7.4 percent, or about $43 million, according to global information company The NPD Group. Given these positive results The NPD Group estimates that the total Canadian toy industry will grow by 7.3 per cent, or just over $125M, for full-year 2015.
This forecast comes on the heels of recent data from The NPD Group which showed that the U.S. toy industry grew by 6.5 per cent in the first half of 2015 and is forecasted to grow by 6.2 percent for full-year 2015.
The Importance of Branding and Licensing
Branding and licensing continue to play a strong role in the growth of the industry. Recent research by NPD suggests that 67 per cent of the Canadian toy business is driven by brands and/or licenses. Furthermore, 11 per cent is driven by top movie properties.
“There is no doubt that the strong performance in the first-half of 2015 bodes well for the industry as we move into what is typically the most lucrative part of the year,” said Michelle Liem, Director of the Canadian toys division at The NPD Group. “Akin to the U.S., the success of Disney Frozen, Minecraft, Shopkins, Paw Patrol, and Marvel have contributed to the strong performance of the toy industry in Canada.”
The strong performance of the Canadian toy industry was driven by a number of categories that experienced positive year-over-year percentage growth during the first half of 2015. The five categories listed below led the way with respect to growth.
- Plush Toys +21.3%
- Youth Electronics +20.3%
- Games/Puzzles +13.1%
- Outdoor/Sports +11.3%
- Action Figures/Role Play +9.4%
One of the most notable increases occurred in the outdoor/sports category, which grew by over 11 per cent in Canada to $200M; nearly doubling the U.S percentage growth of 6 per cent.
“The substantial growth in the outdoor/sports category can largely be attributed to the distinct seasonality we experience in Canada. Canadian children tend to embrace the outdoors, even when the weather turns frigid,” said Liem. “This creates a purchase environment that differs from the U.S. where many regions experience consistently mild weather. Whether its sleds and toboggans, or playground equipment and tricycles, our climate requires a variety of specialized equipment that changes from season to season and is often unnecessary in warmer climates.”
Source: The NPD Group, Inc. / Retail Tracking Service