The NPD Group, Inc., leading provider of consumer and retail information, tracks sales on the toys market in the five major European countries, namely the UK, Germany, France, Italy and Spain in addition to monitoring these markets in Belgium, Poland and Portugal, with Austria launching in 2007.

This survey shows that in 2006 the European toys market grew by an average of 2% over 2005. Growth rates however vary significantly from country to country, from -2% to +5%. Spain and UK reported the highest growth levels in 2006 on the toys market at +5% growth. Italy ranked third, while growth in France remained stable and Germany experienced a drop in sales.

Youth Electronics is one of the most dynamic categories in most markets, thanks to the continued strength of Tamagotchi and a host of new products coming into the market. This will remain a big trend also in 2007 - apart from robotic playmates and "virtual" worlds, child-targeted versions of state of the art electronic products such as MP3 players, digital cameras and camcorders, and products that mix a variety of functions and play patterns. Connectivity is becoming a prevailing feature also in toys. Electronic Learning remains one of the key drivers (V.Smile console again the top selling or second ranked item overall in 4 out of 5 markets); Infant Toys and PS Figures/Playsets have also done well, driven by a mix of classic branded product and some targeted licenses.

According to The NPD Group, growth rates in the “Infant Toy” category were high in all countries, with Spain leading the way. In four of the major five countries tracked surveyed, namely France, Italy, Germany and the UK, sales of junior electronic toys (including interactive robots/electronic pets) were very high whereas, in Spain, the best selling items were outdoor toys and board games.

Although the markets felt the "hangover" after the strong Star Wars year 2005, licenses were among the main drivers in all markets : : +12% in the UK, +4% in Italy and +3% in France. Among this year's movies, Cars from Disney/Pixar and Pirates of the Caribbean II (also from Disney) had the greatest impact on the toy market. Not unexpectedly, Soccer related licenses experienced strong growth in Germany. Licenses also remain very strong with children ages 5 and younger - in particular, Dora the Explorer became very popular in 2006, and Thomas & Friends celebrated a great comeback.