Toys are hot — and here’s what’s driving industry growth
The U.S. toy industry delivered its strongest first-half performance in six years as it continues to undergo a major demographic shift.
Dollar sales from January through June 2026 increased by 17% year over year, according to a report by Circana. Unit sales grew 12%, while the average selling price increased 4%, led by high demand for trading cards, collectibles, licensed products and fandom-driven play.
Growth was fueled primarily by trading cards, collectibles and sports-related products. Building sets, arts and crafts, and action figures & accessories also posted healthy gains across dollars, units and pricing, the report said.
Licensed toys continued to outperform the broader market, rising 24% and accounting for 39% of total toy sales — an increase of two share points versus last year. Sports-related properties emerged as a defining theme of 2026. Fueled by global soccer popularity, the FIFA property became one of the industry's biggest breakout successes, and other sports properties including MLB, NFL and NBA also posted meaningful gains.
On a demographic level, the toy industry's growth continues to be fueled increasingly by older consumers, noted Circana. Adult-only households accounted for 55% of toy sales and grew 16% through June, slightly outpacing households with children.
“The first half of 2026 demonstrated that the toy industry's growth story reflects both the extraordinary performance of trading cards and strength across several other key areas of the market," said Kristen McLean, VP of client insights for Circana’s Entertainment Knowledge Group. "Beyond trading cards, consumers continued to gravitate toward collectibles, sensory toys, licensed products, and hobby-oriented play, underscoring the broad appeal of toys despite ongoing affordability pressures. These trends are helping expand toy engagement across a much wider consumer base than the industry has historically served."
The trend is reflected in gift giving. Teens aged 12-17 were the fastest-growing recipient group, with sales increasing 33%. Together, teens and adults generated nearly 60% of the industry's incremental dollar gains in the first half.
“We're seeing toys increasingly function as hobbies, fandom ecosystems, and social experiences rather than traditional children's products," McLean added. "That's expanding the consumer base and creating new opportunities for manufacturers and retailers that understand how to engage collectors, enthusiasts, gifters, and self-purchasers."
READ MORE: How 'kidults' are fueling sales of toys and collectibles
Holiday Forecast
As the holiday season approaches, collectibles, licensed products, gaming-related properties, building sets, sports-themed items, and other hobby-oriented categories are expected to remain key growth drivers, according to Circana.
“The toy industry heads into the holiday season with strong momentum," McLean said. "The industry's ability to maintain relevance through licensing, fandom, collectability, and community-driven engagement has positioned it well for continued growth, but pricing and affordability will remain important watchpoints as we move through the balance of the year."
