Sales of ‘pocket money’ toys under £10 boomed last year as budget-conscious parents and adult collectors turned to cheaper playsets and minifigures to weather the tough economic conditions.
According to new data from market research firm Circana, UK toy sales are set to fall by 3.7 per cent to £3.4 billion in 2024, while cheaper items performed well, with 80 per cent of all toys sold costing less than £15 and almost 30 per cent less than £15. £10.
The best-selling toy for the second year running was the Squishmallows plush range, which typically costs less than £9, illustrating how affordability has helped propel certain brands. Melissa Symonds, executive director for British toys at Circana, says families have scaled back their impulse purchases after years of rising living costs, boosting demand for ‘soft toys and collectibles’ over more expensive options.
Crucially, a growing group of older toy lovers – known as ‘kidults’, aged 12 and over – now account for almost 30 percent of toy sales in Britain. Their willingness to spend money on more expensive building sets, especially Lego’s advanced or licensed ranges, has helped offset some sales declines. Sales of building sets rose 6 percent, helped by Lego’s Botanics range of flower-themed sets, which appeal to a growing group of adults.
Across the board, demand for collectible toys remains unabated. One in five toys sold in 2024 were collectibles, with an average price of £7.59. Brands like Funko Pop! and Sylvanian Families have capitalized on the British love for putting together entire sets, while licensed texts from popular films and TV series – such as Despicable Me and Bluey – are also on the rise.
Kerri Atherton, head of public affairs at the British Toy & Hobby Association, highlights the rise in the number of “micro collectibles” (toys less than 5cm high), driven by the popularity of Lego minifigures and Funko’s Bitty Pop! range. “We’ve seen a lot of excitement around these little toys that have both a high ‘cute factor’ and a low price tag,” she said, noting an 18 percent increase in sales of micro collectibles.
Despite a surge in sales in late December, the UK toy market recorded its fourth consecutive year-on-year decline, reflecting a broader decline in retail sales. Official data from the Office for National Statistics showed a 0.3 percent month-on-month decline in December, a key shopping period.
“These numbers have undoubtedly been shaped by the uncertain economic environment,” Atherton said, highlighting that inflationary pressures and cost-of-living challenges have flowed through discretionary categories such as toys. Nevertheless, the robust performance in the budget and collectible segments suggests that when it comes to play time, UK shoppers are simply scaling back rather than opting out.