Children's Book Sales Up Slightly in First Half of 2002

Posted on October 16, 2002

Consumers purchased 201.1 million books intended for children under 14 years of age during the first six months of 2002 -- up 4% from the same period in 2001 according to Ipsos Children's BookTrends, a tracking service from research organization Ipsos-NPD.

Despite a lift in unit volume, consumer spending for children's books held close to the same level as one year ago. The survey of more than 12,000 nationally representative households found that consumers spent an estimated $762 million on books intended for someone under 14 years old in the first six months of 2002, compared to $765 million in 2001. Dollar stores continue to claim a greater market share compared to the past -- driving down average prices paid by consumers and overall spending. In addition, categories lowest in price, such as coloring and activity books fared best during the first half of 2002.

Aside from coloring and activity books, storybooks (especially picture books and sound books) and education-oriented children�s books supported the lift in unit volume. "Parents show a clear intent to save money in this tight economy, though they do not wish to compromise their kids� education," said Barrie Rappaport, spokesperson for Ipsos Children�s BookTrends. Consumer demand for educational workbooks, reference and non-fiction reading books increased in this first evaluation of the children�s book industry performance in 2002. In addition, the leveled reader category continues to show strength.

As mentioned above, dollar stores continue to increase their share of the children's book market, which most likely accounts for the lackluster growth in consumer expenditures. In addition to the dollar store channel, consumers were more likely to purchase children's books at bookstores, toy stores, at warehouse clubs or online compared to the first six months of 2001. On the other hand, the special market channel comprised of book clubs, book fairs and mail order did not fare well during the first half of 2002, reaching a four- year low unit share (26%). Fewer books purchased through special markets were planned purchases or intended to be given as a gift so far into 2002 compared to last year. This is in stark contrast to the industry in total, which observed a lift in both planned and gift buying.

"Although consumer spending for children�s books was a bit subdued so far into the year, the good news is that consumers are buying more books than in the recent past. After several years of declining demand, due in part to a dip in the population of children under 14 years old, the children�s book industry seems to have entered into a true recovery period as we have seen three consecutive six-month periods of unit growth." said Rappaport, who continues: "This industry remains on solid ground even though larger economic concerns are obviously having an impact. So far, we see greater price consciousness among consumers, but the good news is that the total amount of dollars spent on books remains stable."