In 2023, the UK toy market experienced a significant shift, revealing that nearly half of all toys sold were priced under £15. This trend stemmed from the ongoing pressures of the rising cost of living, which has forced many consumers, especially parents, to reassess their spending habits. According to industry analysts from Circana, toy sales, including games, dropped by a troubling 3.7% compared to the previous year, as families sought more affordable options for gifts and entertainment.
The dynamic landscape of toy sales has seen a notable change; adults are increasingly purchasing toys, not just for their children but also for personal enjoyment. Despite this, the overall market has still been impacted by what traders describe as an “unsettled economic landscape.” Retailers are responding to these changing consumer behaviors by turning their focus toward collectibles that cater to both young audiences and nostalgic adults. These collectibles tend to be low-cost yet encourage multiple purchases, creating a pathway for both revenue and consumer engagement.
Interestingly, the toy industry’s woes since 2021 are highlighted by the ongoing decline in sales, which contrasts with the surge witnessed during the pandemic. Many families turned to toys for entertainment during lockdowns; however, once the world began to normalize, sales began to decline again. The Squishmallows Plush 8″ Assortment, for instance, remained the leading toy for the second consecutive year, typically retailing around £8.50. This particular toy gained popularity during the pandemic, thanks in part to social media where people shared their collections and expressed emotional relief from hugging these stuffed characters. In fact, toys priced below £10 made up a substantial 28% of the overall market.
At the same time, the British Toy and Hobby Association is looking forward to innovation opportunities, as its 71st annual Toy Fair unfolds in London. Industry stakeholders are hopeful that the introduction of new and innovative products, including mini or micro collectibles, could help rejuvenate sales. Additionally, there is a growing reliance on adult consumers, who are likely to purchase nostalgic items and building sets, such as Lego, in anticipation of the Christmas season.
However, a noticeable trend affecting the market includes a declining birth rate, the strain of living costs, and a lack of new blockbuster film franchises that traditionally boost sales. Kerri Atherton from the British Toy and Hobby Association commented on this economic climate, stating, “These latest figures have undoubtedly been shaped by the current unsettled economic landscape which is impacting people’s spending across a wide range of consumer goods, including toys.” While the market faces these challenges, Atherton acknowledged that there are still “pockets of increased spend” within the toy sector, hinting at some resilience amidst adversity.
Ultimately, the toy industry in the UK is navigating through a complex situation characterized by economic pressure and changing consumer patterns. The trend of selling toys at lower price points indicates a shift in mindset among shoppers, pushing retailers to adapt to new preferences while finding creative ways to attract and engage both kids and nostalgic adults. The ongoing changes necessitate innovation and an attuned understanding of what consumers want, which may very well hold the key to revitalizing the market in the post-pandemic world.
