By Mark Seavy 

Global toy sales increased 14% in the first half of the year, driven by an expanded assortment of licensed IPs across a growing array of categories, according to recent data from research firm Circana. 

The sharp gains in toy sales were diverse, with the top-selling categories and IPs varying by country. And adult consumers drove 35% of that growth through purchases of collectibles and trading cards, according to Circana.  The study examined toy sales in Australia, Belgium, Brazil, Canada, Chile, China, France, Germany, Italy, Mexico, the Netherlands, Peru, Spain, the U.K., and the U.S. 

Games and puzzles were the top-selling category in North America with the National Football League leading among the licenses and FIFA registering strong gains driven by the 2026 World Cup. And in Latin America, where December can account for 32% of the region’s toy sales (that percentage is higher in Chile and Peru), dolls were the top category with mini vehicles also gaining in popularity, according to the research firm. 

Building sets were the strongest category in Europe, with Star Wars and FIFA leading the way for IPs. And, in a show of local IP strength, infant, toddler, and preschool toys drove the business in China, where Oriental Land Company’s Duffy and Friends brand was the leading license (its owner collaborates with the Shanghai Disney Resort for promotions and merchandise). The Duffy and Friends IP has about $500 million in annual sales and a range of promotions, including one with China Eastern Airlines.  

And in Australia, Star Wars was the top license while the Australian Broadcasting Corp. and BBC Studios’ Bluey, which counts Spin Master and Ravensburger among its licensees, recorded the highest gain among the licenses examined, according to Circana. The animated series is produced by Brisbane, Australia-based Ludo Studio. 

This growth in the global toy business contrasts with a year ago when U.S. government-imposed tariffs on goods imported from China—including toys—forced many retailers to delay or in some cases cancel orders altogether. And while tariffs remain in effect at 10-12% (Spin Master is forecasting $30 million in costs related to them in 2026), the urgency of a year ago has eased. Spin Master is also forecasting $15 million in costs (based on a $100-per-barrel price) related to ongoing global conflict and its impact on oil supplies, CFO Jonathan Roiter said. 

In response to that initial tariff impact, however, many companies expanded their licensing efforts.   

Melissa & Doug, a children’s toy supplier that rarely licensed IP prior to its sale to Spin Master in 2024, signed an agreement with the Van Leeuwen ice cream brand to produce a 29-piece wooden ice cream counter ($64) and scoop pack ($12). And Spin Master’s Toca Boca mobile game was licensed to retailer Miniso, which will carry more than 35 items including plush toys, stationery, blind boxes, and key chains in 350 stores. Spin Master also signed licensing deals for its Hellbreak horror trading game with Lionsgate, Blumhouse, and AMC, and recently had a film released based on its Paw Patrol IP, Paw Patrol: The Dino Movie (Paramount, August 14). Toys inspired by the film are launching at Walmart this month. 

FAO Schwarz opened a 5,000-square-foot “Jewel Box” inside Nordstrom’s flagship store in New York City. The store-within-a-store, which opened on August 14, is packed with licensed goods, including Mattel’s action figures and Ravenburger’s puzzles based on Netflix’s hit KPop Demon Hunters as well as Spin Master’s Bluey/Squishmallows plush. It also has a cotton stand and a custom design section for bags. In addition to New York, smaller 1,000-square-foot FAO Schwarz offerings will open in Nordstrom locations in Aventura, FL; Bellevue, WA; Brea, CA; Indianapolis, IN; Oakbrook, IL; Costa Mesa, CA; and San Diego, CA. FAO also operates a 20,000-square-foot location in New York’s Rockefeller Center. 

Moving forward, brand owners and manufacturers are preparing for further growth in the toy space.  

“Beyond 2026, a key aspect of our long-term growth strategy is accelerating our expansion into high-growth categories,” Spin Master CEO Christina Miller said. “This includes collectibles and strategic trading cards, both of which are extremely popular with fans and the kidult demographic.”