US toy sales grew six per cent in 2025, with higher priced lines and Pokémon collectibles the biggest winners – though Circana analysts warn tariffs have yet to bite
The US toy industry returned to growth in 2025 following two years of decline, according to a new report from Circana.
Total annual dollar sales grew by six per cent, as average selling price rose four per cent and units sold increased three per cent.
The main growth driver was licensed toys and increased consumer appetite for higher priced items, a phenomenon experienced in other markets, including the UK, with the rise of the kidult market. While entry and mid-priced toys softened, higher price tiers accelerated. Toys priced $30–$69.99 grew 18 per cent year over year, the fastest of any segment.
“Toys priced $30–$69.99 grew 18 per cent year over year, the fastest of any segment”
“Following a flat performance in 2024, the US toy industry regained its footing in 2025, fuelled by renewed consumer demand and a clear shift toward higher‑value purchases,” said Juli Lennett, U.S. toys industry advisor at Circana. “The return of unit growth alongside price growth signals a healthier market, with licensed, collectible, and fandom‑driven toys continuing to outperform.”
Performance was uneven across the board, with growth primarily concentrated in just three of the supercategories Circana tracks. Games and puzzles – somewhat skewed by continued growth in Pokémon collectibles – saw the highest growth, up 37 per cent in dollar sales. The top toy property, Pokémon posted $2.5 billion in US sales – up 87 per cent year over year – to become the first property in at least 20 years to surpass the $2 billion mark in annual sales.
Building sets jumped 15 per cent on the back of licensed sets, such as F1, while explorative and other toys, up 20 per cent, was buoyed by continued demand for NFL trading cards. Together, these three supercategories accounted for 92 per cent of all US toy industry growth for the year.
“2025 highlighted a growing polarisation between value‑focused purchases and premium offerings, underscoring the importance of innovation and entertainment tie‑ins as key drivers of demand,” Juli said.
Analysts also said that, while this growth came amidst the complications and headwinds US tariffs placed on both suppliers and retailers, the true impact of these levies has yet to be felt.
“While tariffs have not yet materially impacted prices for consumers, their downstream effects remain unpredictable, layered with other factors such as inflation, credit pressure, and consumer confidence shaping discretionary spending,” Juli added. “The brands best positioned to win will be those that activate demand through licensing and innovation, balance fandom with evergreen play, create emotional resonance with consumers, and build communities that turn enthusiasm into sustained demand.”
