Nearly half of toys sold under £15 as parents cut back

Driven by the pressure of rising living costs, toys priced under £15 accounted for nearly half of the UK market share last year. Data from industry analysis firm Circana shows that sales of toys and games products fell by 3.7% compared to the previous year, reflecting a tendency for parents to buy lower-priced gifts for their children under economic strain.

Although an increasing number of adults are starting to buy toys and games for themselves, businesses say overall sales are still affected by the "unstable economic environment." Retailers are pinning their hopes on collectibles, which appeal to both adults and children, are lower in price, but encourage repeat purchases. For example, the Squishmallows plush toy series, priced at around £8.50, was the best-selling item for the second consecutive year.

Squishmallows became popular during the pandemic as people shared their collections on social media, and it is said that hugging these toys can help people feel calmer and reduce anxiety. Data shows that toys priced under £15 account for 47% of the market value and as much as 80% of sales volume. Among them, toys priced under £10 account for 28% of the market share. Melissa Symonds, Executive Director of the UK Toy Division at Circana, said that in addition to lower prices, parents also value the play value of toys more.

This may mean that parents are abandoning the unboxing toys that have been popular in recent years, and instead choosing toys that children can play with regularly. The British Toy and Hobby Association (BTHA) held its 71st annual toy fair in London, hoping to reverse the industry's decline through innovation. This includes launching more mini or micro collectibles, such as smaller plush toys and stickers. However, the industry may once again rely on adults buying toys for themselves, with nostalgic themes and LEGO building sets expected to remain bestsellers this Christmas.

Ms. Symonds also mentioned that some couples even gave each other LEGO bouquets for Valentine's Day. LEGO's botanical series was the second fastest-growing trend last year, second only to Stitch character toys. She also stated that toys and sets themed around Formula One racing are expected to be widely available in 2025, driven by trading cards and a new film starring Brad Pitt. Sales of toys and games products increased sharply during the COVID-19 pandemic due to home isolation, but sales have declined since 2021. Declining birth rates, rising living costs, and a lack of popular movie franchises are all considered reasons for last year's market downturn.

Kerri Atherton of BTHA said: "The latest data has undoubtedly been impacted by the current unstable economic environment, which is affecting people's spending on various consumer goods, including toys. However, it is encouraging to see that there has been an increase in spending in certain areas of the UK toy industry."