Hobby, Toy and Game Stores NAICS 459120

Jun 26, 2026 - Toy Demand Gains Momentum

• Retail toy and game stores are benefiting from a strong rebound in consumer demand in 2026, with US toy industry dollar sales rising 13% through April, according to Circana, accelerating from 2025 growth. Unit sales increased 5% while average selling prices rose 7%, indicating consumers remain willing to spend on higher-value toys despite broader weakness in discretionary retail. Games and puzzles (+39%), explorative and other toys (+36%), and building sets (+20%) led growth, driven by Pokémon, LEGO, MLB-licensed products, and NeeDoh. Adult consumers continued to fuel demand, with those 18 and older accounting for 35% of industry growth, while more than half of overall growth came from female recipients. Retailers are also benefiting from viral social media trends, as triple-digit growth in squishy toys and the expanding influence of TikTok Shop are boosting traffic and sales. Stores that emphasize collectibles, licensed merchandise, premium products, and trending items are well positioned to capitalize on continued demand.
• The sporting goods, hobby, music, and book stores segment outperformed the overall retail industry in May, according to the CNBC/NRF Retail Monitor powered by Affinity Solutions. Sales for the segment rose 0.25% month over month and 8.59% year over year, exceeding overall retail growth of 0.42% month over month and 7.19% year over year. The category ranked among the stronger-performing retail segments, trailing only electronics and appliance stores (11.59%), clothing and accessories stores (10.25%), and health and personal care stores (8.87%) in annual growth, while outperforming general merchandise, grocery, furniture, and building and garden supply stores. The results suggest consumers continue to prioritize spending on recreational goods, hobbies, books, and musical products despite elevated gas prices, tariffs, and inflation, supporting healthy demand for retailers in the segment.

• The US toy industry is ramping up lobbying efforts as tariffs and new regulations threaten to raise costs and disrupt planning, according to Legis1 News reporting. With more than 80% of toys produced in China, tariffs are driving supply chain expenses higher. The Toy Association spent $180,000 in Q1 2026 and about $1.23 million over the past year advocating for relief. At the same time, uncertainty around tariffs is complicating holiday inventory decisions, while new AI safety concerns and updated children’s privacy rules add compliance burdens. Together, these pressures could squeeze margins and create operational challenges, particularly for smaller US toy businesses.
• The global licensed toy market is on a steady upward trajectory, projected to grow from $27.2 billion in 2025 to $28.82 billion in 2026, reflecting a 5.9% CAGR, according to a recent Globe Newswire's Licensed Toy Market Report 2026. The growth comes despite broader industry headwinds, powered largely by the expanding influence of franchise entertainment IPs—from blockbuster films and streaming series to gaming universes. Brands are capitalizing on deep consumer affinity for beloved characters and stories, while the blending of digital and physical play experiences is opening new revenue streams. As entertainment ecosystems grow more interconnected, licensed toys remain a resilient and dynamic segment, benefiting from both nostalgic IP revivals and the launch of new franchises capturing the next generation of fans, per the report.