- Children’s rising financial means and empowerment. In the US, children are receiving $3.76bn a year to spend as they wish, and with a growing number of children using Debit cards, they have more financial means, empowerment and freedom than any previous generation.
- Children also have far greater choice when it comes to how they spend their money, with them spending £581m on INXP in the UK (in-experience purchasing such as apps and in-game), compared to £969m on toys and games.
- In the UK, over a third of 6-9s play with classic board games such as Monopoly, Guess Who and Jenga monthly. Tweens who play board games as a hobby reported feeling frequently happy 51% more than average.
- The impact of Generation Speak, as children move from controlling their devices by typing, swiping to voice. Over 20% of 10-12s in India prefer to control their device by their voice.
- Demand for licensed properties continues to grow, driven by an increase in gaming and YouTube properties. Minecraft, Fortnite, Sonic, Ryan’s World and JoJo Siwa all performed well over the last 12 months.
- The annual spend on advertising and marketing to children by companies is forecast to reach $4.6bn by 2021*. The biggest winners of kids digital ad spend expansion is projected to be kidtech-enabled content (compliant with children digital privacy laws), YouTube as well as VOD/OTT.
- While action figures are boosted by TV & movie releases and Fortnite overall, it is argued that there is now more competition in relation to licensing as boys increasingly opt for video gaming over traditional toys. As consumers ask more inclusiveness/diversity in toys, dolls are the first category to embrace the initiative. When it comes to Arts & Crafts, it is one the least licensed toy category yet, LEGO’s entry with its new DOTS range may potentially rejuvenate it in this respect. In pocket money toys, kids’ rising financial empowerment drives sales. In the UK, 3-18 year olds receive £248m ($321.95m) per month (£2.9bn, $3.76bn a year) to spend as they wish. Debit cards are increasingly being used by more British children aided by new financial products such as pre-paid cards like GoHenry.
Utku Tansel LLB, MBA Head of Global Industry Reports Kids Insights commented:
“I have been working in this industry for 12 years and in my career, I have not witnessed such speed of change. The industry is increasingly embracing sustainability and inclusivity while AR & AI push limits on innovation-driven largely by ever rising smartphone/tablet penetration among children. Our study takes readers to an exciting journey shaped by key developments and opportunities showcased in a new world order. “
Nick Richardson, CEO Kids Insights adds:
“The report provides us with an opportunity to reflect on how much our industry has changed in recent years, months and weeks. Many of us will remember the tried and trusted formula for this industry over the years: “X” number of TVR’s, ensuring key retail stockists were on-board and on occasion utilising key licensed properties. But when it comes to this generation of children they are like no other, constantly connected, with very different attitudes, behaviour and consumption traits than previous generations.”
To purchase a full copy of Kids Insights Global Toys & Games report 2020, please visit https://kidsinsights.com/global-toy-report/.