United Kingdom (UK) Toys and Games Market Analysis by Categories, Revenue Share, Consumer Attitudes, Key Players and Forecast to 2027

UK Toys and Games Market Report Overview

The UK toys and games market was valued at GBP4.3 billion in 2022 and is forecast to grow at a compound annual growth rate (CAGR) of more than 1% between 2022-2027. The year 2020 was a historic year for the UK toys and games market as many invested in the sector to help pass the time during lockdowns. However, the market has been bleak since predominantly due to the cost-of-living crisis deterring less essential spending, particularly among adults that purchase toys & games for themselves.

UK Toys and Games Market Outlook 2022-2027 ($ Billion)

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The UK toys & games report offers a comprehensive insight into the toys & games market in the UK, analyzing the sector, the major players, the main trends, and consumer attitudes, as well as providing market forecasts out to 2027.

UK Toys and Games Market Trends

Millennial and Gen Z consumers are investing more in toys & games than ever before. Brands such as Hasbro and Mattel have reintroduced Furby and new Barbie movie collectables, appealing to shoppers that have a sense of nostalgia for these products. Additionally, cinematic and streaming releases will continue to play a vital role in the toys & games market. Box office hits from film franchises such as Star Wars and the Marvel Cinematic Universe remain drivers, boosting sales of licensed toy ranges among both adults and children alike.

‘Kidults’, adults interested in forms of entertainment such as computer games and television programmes intended for children, are a growing market for retailers in the toys & games sector. Collectable toys that form part of a wider world are some of the most popular among the older demographic. For this purpose, retailers must appeal to consumers over the age of 16 through social media and content creation.

Engaging and interactive instore experiences appealing to all generations are essential for offline sales and community building. For instance, through vibrant displays and tangible experiences, LEGO attracts customers into stores through Pick & Build walls, display cabinets highlighting prebuilt sets and large models. These features encourage footfall by introducing new and long-standing customers into stores, creating an area for play, building, and sharing experiences across age ranges.

UK Toys and Games Market Segmentation by Category

The UK toys & games market is categorized into outdoor toys, soft toys, construction toys, action figure toys, electronic toys, board games & jigsaws, art toys, and dolls house & rail sets among others. The outdoor toys lead the toys & games market in size and growth in the UK in 2022. The market is expected to grow during the forecast period as these items continue to appeal to parents looking to keep their children occupied over the summer months.

Furthermore, the action figures category is expected to show a significant growth between 2022 and 2027, higher than any other toys & games category. The continued pace of growth could well see action figures overtaking construction toys as the third most valuable category in the next decade.

UK Toys and Games Market Analysis, by Category 2022(%)

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UK Toys and Games Market Segmentation by Channel

The key distribution channels in the UK toys & games market are other online retail, online pureplays, toys & games specialists, value, discount and variety stores & general merchandise retail, hypermarkets, supermarkets & hard discounters, and others. The online retail market overtook offline in 2022. However, this is expected to slow between 2022 and 2027 as the market is challenged by a post-pandemic slump in sales and added inflationary costs of online operations.

UK Toys and Games Market Analysis, by Channel 2022(%)

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UK Toys and Games Market - Competitive Landscape

The leading players in the UK toys & games market are Amazon, Smyths, Argos, Tesco, ASDA, and The Entertainer among others. Amazon retained the largest share of the UK toys & games market in 2022, despite a marginal declcine in sales between 2021 and 2022 as shoppers returned to physical stores post the ending of COVID-19 restrictions.

UK Toys and Games Market Analysis, by Retailers 2022(%)

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UK Toys & Games Market Segmentation

• UK Toys & Games Market Outlook by Category
  • Outdoor Toys
  • Soft Toys
  • Construction Toys
  • Action Figure Toys
  • Electronic Toys
  • Board Games & Jigsaw Puzzles
  • Art Toys
• UK Toys & Games Market Outlook by Distribution Channels
  • Other Online Retail
  • Online Pureplays
  • Toys & Games Specialists
  • Value, Discount and Variety Stores and General Merchandise Retail
  • Hypermarkets, Supermarkets, and Hard Discounters
  • Others

Key Highlights

• Toys & games market to decline in 2023 as consumers cut back discretionary spend.
• Amazon remains the market leader in 2023, despite a decline in market share as online sales fall.
• Soft toys was the most popular category for toys & games purchases in 2023.

Reasons to Buy

• Using our five-year forecasts to 2027, learn which subcategories in the toys & games market will be the fastest performing to enable focus and investment in these winning product areas.
• Understand how drivers of toys & games purchases, such as range, price and quality, vary in importance among different demographics in order to maximize sales potential.
• Use our in-depth analysis of the challenges faced by key retailers in the sector in order to understand how to steal shoppers and market share.