| ||
|
Despite a slowdown in U.S. sales and rising competition from vertical segments such as video games, worldwide toy market sales topped $71.96 billion dollars in 2007, a 5 percent increase over the $68.5 billion generated in 2006, according to Global Toy Trends and Forecasts, the most recent report from leading market research company, The NPD Group. At the current pace, NPD expects worldwide toy sales to top $86.3 billion in 2010. Global Toy Trends and Forecasts provides a detailed and granular look at the composition of the global toy market since 2004, including a country by country analysis by age and gender, as well as the opportunities that exist for the toy industry in other parts of the world and a trend forecast of what The NPD Group expects the industry to experience within the next few years. According to the report, North America represents 33 percent of worldwide sales, followed by Europe at 30 percent and Asia at 24 percent. However, according to NPD prediction models, Asia is expected to mirror European sales with both representing 27 percent of worldwide sales by the end of 2008, and grow by 18 percent by 2010. Sales in Brazil, Russia, India and China (BRIC) are outpacing total market sales, and are becoming increasingly important to the overall growth of the global toy market. In 2004, BRIC countries made up only 8.8 percent of world toy market sales, increasing to 11.2 percent in 2007. The only country to show negative dollar sales growth in 2007 was the U.S., with all other major countries showing positive dollar sales gains. However, NPD estimates the U.S. market will return to growth, and should deliver an increase by 8.8 percent by 2010 of the average spending on toys for kids. Next to the United States, Japan and United Kingdom produced the most revenue in 2007, generating $5.95 billion and $4.38 billion, respectively. “We are excited to be able to leverage NPD’s knowledge and expertise within the toy industry to provide an estimate of the global toy market,” said Jane Zimmy, President of Global Development, Toys, The NPD Group. The NPD Group, which already operates in and provides market research on the toy industry in more than 12 countries, has developed a market estimate statistical model based on this information. “It's a logical place to start,” said Zimmy, “as The NPD Group’s Toy service has been tracking the industry for 30 years.” “Growth in markets outside of the U.S. provides toy manufacturers with alternative opportunities for business expansion,” said Anita Frazier, industry analyst, The NPD Group. “Understanding this potential in greater depth will be key to capitalizing on those opportunities.” Methodology |
