The BTHA and Circana (formerly known as The NPD Group) have this morning (23 January) presented their annual industry insights into the toy market, revealing some positive trends in the UK toy market, despite continuing challenging economic conditions.
Despite these conditions throughout 2023 reducing consumers discretionary spending power, the UK toy market demonstrated resilience, with a total value of £3.5bn sales.
Although the market experienced a decline of -5% in value, consumers’ demand for toys remains strong, with several toy categories achieving growth.
Notably, sales of toys priced £15 to £20 was the only price category gaining sales showing that consumers opt for more mid-point items in an economic downturn. However, over 63.5% of toy units sold are still priced under £10, contributing to a significant 28% of the market’s overall value. This signals that affordability and value for money are top priorities for consumers during these uncertain times.
Buoyed by top toy movie blockbusters, Licensed Toys continued to play a vital role in the market dynamics of 2023. The sector reported sustained growth for the fifth consecutive year, with market share increasing to 32% from 26% in 2020, surpassing last year’s highest ever market share by 1%. Looking ahead, the market is expected to stabilise in 2024, with a greater emphasis on evergreen licences and original toy brands.
Plush Toys, Games & Puzzles, as well as Building Sets experienced notable growth within the UK toy market. Plush Toys – which was a top three sales driver in the previous year – recorded an impressive 11% growth in 2023, making it the strongest performing category of 2023. The fastest gaining subclass within this category was Traditional Plush, further contributing to its success.
Moreover, the Squishmallows Plush 8” Assortment emerged as the top selling item in 2023, priced under £10 with an average selling price of £9.01.
Collectables saw a positive increase of +3%, reaching a worth of £288 million and accounting for 20.9% of the overall market.
“With people facing difficult times financially, these figures are not surprising and are in common with many other similar consumer goods industries,” commented Kerri Atherton, head of public affairs at the BTHA. “The sustained growth in key categories, like Plush, Licensed toys, as well as growth in Games & Puzzles and Building Sets, illustrate continued strong demand for toys and illustrates the resilience of the UK toy market.
“Looking ahead to 2024, this shows there are opportunities for toy companies launching new and exciting products, with a focus on value for money and affordability a key trend.”
In addition, looking at an older demographic, the 12+ age group – otherwise known as Kidults – is now worth £1bn having contributed 28.7% of the UK toy market’s value, experiencing an impressive 6% increase in growth in 2023.
Collectables, Building Sets and Games & Puzzles are the key categories that resonate with this demographic, closely followed by Plush and Action Figures.
