Budget Toys Boom: Families Adjusting Amidst Economic Challenges

The UK toy market has seen a significant shift as nearly half of toys sold last year were priced under £15, influenced by the rising cost of living. According to industry analysts Circana, overall toy sales dropped by 3.7% in value, reflecting parents’ efforts to curb spending and opt for more affordable options for their children. Despite a trend where adults increasingly indulge in toys for themselves, the economic downturn has affected total sales. Collectibles, particularly those appealing to both kids and adults, may offer hope to retailers, with lower price points encouraging multiple purchases.

One standout product is the Squishmallows Plush 8” Assortment, retaining its title as the best-selling toy for the second consecutive year, largely due to social media popularity and its comfort-giving qualities noted during the pandemic. Toys under £15 constituted 47% of the market’s value, with those under £10 making up 28% of all sales.

Melissa Symonds, Circana’s executive director of UK toys, emphasizes a marked shift in consumer priorities, highlighting a preference for durable toys that encourage repeated play over instant gratification from unboxing experiences.

The British Toy and Hobby Association (BTHA) is optimistic about the sector’s future, with its 71st annual Toy Fair in London showcasing innovations, including new lines of mini collectibles. Nostalgic toys like Lego are expected to perform well, particularly as couples gift Lego flower sets for occasions like Valentine’s Day. Additionally, the upcoming Formula One-themed toys and collectables tied to a new Brad Pitt film are anticipated to energize the market in 2025.

While the toy market experienced a boom during COVID-19 lockdowns, few blockbuster film franchises and a declining birth rate have contributed to a downturn in sales since 2021. Kerri Atherton from BTHA notes that the current economic situation heavily influences consumer spending on toys and other goods, although there are signs of increased spending in certain sectors of the UK toy market.