The Impact of the COVID-19 Pandemic on the Collectible Toy and Action Figure Market
The COVID-19 pandemic has had a significant impact on the collectible toy and action figure market, with the industry experiencing a surge in demand, a shift towards online shopping, and disruptions in supply chains and manufacturing.
Surge in Demand for Collectible Toys and Action Figures
Despite the challenges posed by the pandemic, the collectible toy and action figure market has seen a remarkable increase in demand. According to Market Decipher, the collectible toys market gained traction during the pandemic as new consumer interests and hobbies developed during lockdowns, supporting sales of collectible toys. The market is estimated to reach $40 billion by 2032, with a current market size of $18.4 billion.
The pandemic has also fueled the growth of the “kidult” market, with adults increasingly purchasing toys for themselves. As reported by eMarketer, consumers aged 18 and older represented 14% of U.S. toy industry sales in the 12 months ending September 2021, growing 19% year-over-year. Over half (58%) of adults bought toys and games for themselves last year, with collectibles being among the top favorites.
Shift Towards Online Shopping and E-commerce Platforms
The pandemic has accelerated the shift from offline to online sales in the collectible toy and action figure market. As physical stores closed due to lockdowns, consumers turned to e-commerce platforms to purchase their favorite collectibles. Ecwid highlights the emergence of online selling platforms like eBay, Mercari, and WhatNot, which have become ideal for selling collectible action figures.
Major toy companies have also adapted to this trend, with Lego creating an “Adults Welcome” section on its website and Build-a-Bear launching a dedicated “Bear Cave” site for consumers aged 18 and older. The action figure market is projected to reach a value of $15.2 billion by 2031, with a significant portion of this growth driven by the expanding online and e-commerce presence.
Disruptions in Supply Chains and Manufacturing
While the collectible toy and action figure market has seen a surge in demand, the pandemic has also caused significant disruptions in supply chains and manufacturing. Grand View Research notes that the COVID-19 outbreak has led to decreased disposable income, physical store closures, and disruptions to the supply chain, posing challenges for the industry.
Many toy manufacturers rely on factories in China, which were heavily impacted by the pandemic, leading to production delays and increased shipping costs. However, despite these challenges, the market has shown resilience, with companies adapting to the new reality by diversifying their supply chains and exploring alternative manufacturing options.
The COVID-19 pandemic has had a profound impact on the collectible toy and action figure market, driving a surge in demand, accelerating the shift towards online shopping, and causing disruptions in supply chains and manufacturing. As the industry continues to navigate these challenges, it is clear that the pandemic has reshaped the landscape of the collectible toy and action figure market, paving the way for new trends and opportunities in the years to come.
Geopolitical Tensions and Supply Chain Challenges in the Collectible Toy and Action Figure Industry
The collectible toy and action figure industry has not been immune to the impact of geopolitical tensions and supply chain challenges. Trade disputes, global events, and increased shipping costs have all played a role in shaping the industry’s landscape.
Impact of Trade Disputes and Tariffs
Trade tensions between the US and China have had a significant impact on the toy industry, with many manufacturers relying on factories in China for production. As noted by Steve Reece, the tariffs imposed by President Trump affected the broader toy industry, forcing companies to seek alternative production sources outside of China.
The collectible toy and action figure market has likely been impacted by these trade disputes, as manufacturers face increased costs and the need to diversify their supply chains. This could lead to higher prices for consumers and potential delays in product releases.
Challenges Posed by Global Events
Global events, such as the war in Ukraine, have also had an impact on the collectible toy and action figure industry. As mentioned by Steve Reece, the war in Ukraine has led to major brands pulling out of the Russian market, affecting toy sales in the region, including collectible items.
The war has also contributed to rising oil prices, resulting in increased manufacturing costs for plastic-based products like toys and action figures. This could further impact the industry, as companies grapple with higher production costs and the need to maintain competitive pricing.
Increased Shipping Costs and Distribution Difficulties
The COVID-19 pandemic has caused significant shipping and logistics challenges, leading to increased shipping costs for the toy industry. As highlighted by Steve Reece, the pandemic-induced supply chain issues have disrupted the normal flows of container ships, complicating the distribution of collectible toys and action figures.
These increased shipping costs and distribution difficulties have made it more challenging for companies to get their products to market, potentially leading to delays and higher prices for consumers. Reddit users have also noted that supply chain issues are a significant factor contributing to the high prices of action figures.
Geopolitical tensions and supply chain challenges have had a notable impact on the collectible toy and action figure industry. Trade disputes, global events, and increased shipping costs have all contributed to a more complex and challenging landscape for manufacturers and consumers alike. As the industry navigates these obstacles, it will be crucial for companies to adapt and find innovative solutions to ensure the continued growth and success of the collectible toy and action figure market.
Emerging Trends and Predictions in the Collectible Toy and Action Figure Market
As the collectible toy and action figure market continues to evolve, several emerging trends and predictions are shaping the future of the industry. From the rise of adult collectors to the influence of popular culture and sustainability concerns, these trends are set to have a significant impact on the market in the coming years.
Rise of the “Kidult” Market and Adult Collectors
One of the most notable trends in the collectible toy and action figure market is the growing presence of adult collectors, often referred to as “kidults.” As reported by eMarketer, consumers aged 18 and older represented 14% of U.S. toy industry sales in the 12 months ending September 2021, growing 19% year-over-year. This trend is expected to continue, with major toy companies like Lego and Build-a-Bear catering to this demographic through targeted product lines and marketing strategies.
The rise of the “kidult” market can be attributed to several factors, including nostalgia for childhood toys and the desire for high-quality, collectible items. As noted by Marketplace, the pandemic has also played a role in driving this trend, with adults seeking to reconnect with their childhoods and find comfort in familiar toys.
Influence of Popular Culture and Media Franchises
Popular culture and media franchises continue to have a significant influence on the collectible toy and action figure market. As highlighted by Grand View Research, the increasing popularity of superhero movies and anime characters is expected to drive demand for action figures in the coming years.
Toy companies are capitalizing on this trend by securing licenses for popular franchises and creating highly detailed, collectible figures based on beloved characters. Impericon notes that premium statues based on popular entertainment properties are in high demand, with loyal fans willing to invest in these high-quality collectibles.
Sustainability Concerns and the Use of Alternative Materials
As consumers become increasingly aware of the environmental impact of their purchases, sustainability concerns are beginning to shape the collectible toy and action figure market. Commercial Waste reports that 90% of toys sold today are made from plastic, which has a significant environmental impact, with approximately 80% of all toys ending up in landfills or the ocean.
In response to these concerns, some toy companies are exploring the use of alternative materials and more sustainable production methods. For example, Lego has announced plans to transition to bioplastic for its blocks, while other manufacturers are focusing on creating toys with extended longevity and eco-labels to encourage more conscious consumer choices.
As the collectible toy and action figure market continues to evolve, it is clear that the rise of adult collectors, the influence of popular culture, and growing sustainability concerns will play a significant role in shaping the industry’s future. By adapting to these trends and embracing innovation, toy companies can position themselves for success in an increasingly dynamic and competitive market.
