Toy sales have fallen for the third consecutive year as inflation and economic pressures impact family spending, research reveals.
Despite these challenges, an emerging trend of adult buyers – or “kidults” – purchasing childhood favorites has provided a glimmer of hope for the industry, according to Circana, a toy industry research group.
Driven by nostalgia and the desire for a mental escape, one in five toys and games sold today is bought by adults over 18 for their own enjoyment.
Melissa Symonds, executive director of UK toys at Circana, highlighted the mental health benefits adults derive from these toys, particularly collectibles and Lego sets, which offer a comforting break from global uncertainties.
For the upcoming holiday season, the Toy Retailers’ Association has introduced its annual “DreamToys” list of the 20 products expected to perform well.
This year’s list includes popular favorites like Hot Wheels and Paw Patrol items, alongside diverse options catering to different age groups.
From a humorous Fart Blaster for young children to a McLaren F1 car Lego set likely appealing to adults, the list reflects the wide-ranging appeal of modern toys.
Transport-themed toys remain the top sellers, while animal-inspired interactive pets have surged in popularity.
Many of these animal toys can respond to interactions, adding a new level of engagement.
In recognition of tighter family budgets, prices for toys on the DreamToys list now range between £9.99 and £89.99.
The UK toy industry reported sales of £3.4 billion for the year ending in September, entering the holiday season with Black Friday around the corner.
Retailers aim to maximize in-store and online traffic, especially as Christmas falls on a Wednesday this year, which typically boosts holiday shopping.
However, rising costs due to recent changes in National Insurance are expected to create headwinds for toy sellers in the future.
While the Covid lockdowns saw a boom in toy sales, the industry has seen a downturn since 2021, with sales now slightly below pre-pandemic levels from 2019.
Last year’s average toy price was £12.95, and families continue to spend significantly on gifts for young children, demonstrating that toys remain a cherished part of holiday traditions, even amid changing financial circumstances.
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