Toys priced under £15 accounted for almost half of the UK market last year, as pressure from rising living costs continued to weigh on consumers.
Sales of toys and games fell 3.7% in value from a year earlier, industry analysts Circana said, as parents tightened their belts and looked for cheaper gifts for their children. children.
Despite the trend of adults buying more and more toys and games for themselves, marketers said overall sales had felt the impact of an “unstable economic landscape”.
Retailers are increasingly pinning their hopes on collectibles, appealing to adults and children, whose prices are low but can encourage multiple purchases.
The Squishmallows Plush 8″ assortment, which usually sells for around £8.50, has retained its position as the best-selling item for the second year running.
Squishmallows became popular during the pandemic when people shared their collections on social media and said hugging the toys helped them feel calmer and less anxious.
Toys costing less than £10 made up 28% of the market.
The British Toy and Hobby Association’s 71st annual toy fair will be held in London over the next three days, with hopes of a rebound in fortunes driven by innovation.
This will see other versions of mini or micro collectibles.
However, the sector could once again rely on adults buying as much for themselves as for their children – with nostalgia and building sets such as Lego expected to sell well again next Christmas.
Sales of toys and games saw a surge during Covid as more families spent time at home during lockdowns, but sales have fallen since 2021.
Declining birth rates, the cost of living and a decline in the number of blockbuster film franchises were blamed for hitting the market last year.
The association’s Kerri Atherton said: “These latest figures have undoubtedly been shaped by the current volatile economic landscape which is impacting on people’s spending on a wide range of consumer goods, including toys.
“However, it is promising to see that there are pockets of increased spending in the UK toy sector.”
