Last year was no fun for the UK toy industry with annual sales dropping by nearly £200m as cash-strapped parents bought fewer and cheaper games and action figures for their children – with the bestseller being a £9 cuddly toy.
Sales dropped by 5% to £3.5bn in 2023, according to the annual toy industry report by the market research company Circana.
With households mired in a cost of living crisis, the runaway success story was Squishmallows. The whimsical soft toys shifted by the truckload in a market in which 12.5m fewer toys were sold than in 2022.
Nearly two-thirds of toysbought in the UK market were under £10 as shoppers opted for cheaper purchases.
“People are saying no to those impulse purchases and even saying no to pester power,” said Melissa Symonds, the executive director of UK toys at Circana. “They are still buying toys for birthdays and Christmas.”
While other products were left on the shelf, sales of collectible stuffed animals are thriving. Children and adults are filling their bedrooms with cuddly stuffed creatures, with Ty Beanie Babies, Pokemon and of course Squishmallows among the brands selling well.
Launched in 2017, there are now thousands of Squishmallows designs, each with a unique name and biography, a facet that stokes their appeal for collectors who seek out their favourite characters. Bumper sales of the smaller-sized versions, which cost about £9, helped the soft toy category defy the gloom to post growth of 11%.
While less money was spent on toys for children, adults spent more on stuff for themselves, with “kidults” (buyers aged 12 and over) behind almost 30% of total UK toy sales in 2023. The kidult market was up 6%, spending £1bn on popular items such as Lego sets, soft toy collections and action figures.
“Adults are seeking out escapism activities that tap into their childhood, evoking a more carefree time in their lives,” added Symonds. “This inclination towards toys that fulfil this need not only indulges their nostalgia but also positively contributes to their mental wellbeing.”
Despite businesses coming under pressure from inflation, the average selling price of a toy increased by just 25p to £10.79. After several difficult years, Circana said the toy market is expected to stabilise in 2024 as consumer confidence is improving.
“With people facing difficult times financially, these figures are not surprising,” said Kerri Atherton, the head of public affairs at the British Toy and Hobby Association, speaking as its annual toy fair got under way in London on Tuesday. The robust demand for plush toys, games and building sets pointed to the resilience of the UK toy market, she added.
