Circana: U.S. toy industry starts 2026 strong

CHICAGO — The U.S. toy industry started 2026 strongly, with dollar sales up 13% through April compared with the same period last year, according to new Circana data. Unit sales rose 5%, and average selling prices climbed 7%, making toys one of the strongest-performing discretionary retail categories so far this year.

“The toy industry’s promising start to 2026 reflects a unique intersection of resilient demand and evolving consumer behavior,” said Kristen McLean, vice president of client insights for Circana’s Entertainment Knowledge Group. “Growth is being driven by enthusiasm for trading cards, collectibles, and licensed properties across age groups, reinforcing toys as a bright spot despite broader pressure on discretionary spending.”

Licensed and pop-culture-driven products continued to drive sales. Seven of the industry’s 11 supercategories posted gains, led by games and puzzles, up 39% on the strength of Pokémon products. Explorative and other toys rose 36%, driven by Major League Baseball-licensed items and NeeDoh products, while building sets advanced 20%, supported by LEGO Botanicals and Formula 1-themed sets.

Adults remain a key driver of growth, with consumers 18 and older accounting for 35% of total industry gains through April. Female recipients generated more than half of overall toy industry growth during the period, according to Circana.

The data also showed consumers increasingly gravitating toward higher-priced products. Mid-tier and premium-priced toys outperformed entry-level offerings, reflecting a broader retail trend in which shoppers are making more selective purchases while continuing to spend on products perceived as offering greater value or collectibility.

Sensory toys have been one of the fastest-growing segments. Squishy toys recorded triple-digit growth in both dollar and unit sales through April as consumers embraced tactile products often promoted on social media.

Circana said platforms such as TikTok Shop are accelerating demand. Toys, hobbies and collectibles now rank as the third-largest category on the platform, where viral videos, unboxing content and limited-edition product hunts have helped drive awareness and sales of products such as NeeDoh.

“Strong retail performance and social-driven discovery are transforming sensory toys from a niche segment into a scalable growth category,” McLean said. “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.”