‘Pocket money’ toys costing less than £10 sell well as UK parents cut costs

“Pocket money” toys that actually fit in your pocket have become increasingly popular in the struggling sector as parents seek out cheaper playsets and “kidults” collect mini-figurines based on films and TV shows.

In 2024 UK toy sales declined 3.7% to £3.4bn, according to an annual industry report by the market research company Circana. Despite a gloomy headline picture described as “resilient”, there were bright spots as toy collecting took off among Britons of all ages.

With households still struggling with the cost of living, the latest statistics showed 80% of toys sold in the UK last year had a price tag of less than £15, with these cheaper action figures and cuddly toys adding up to about half of all industry sales.

Meanwhile, “pocket money” toys costing less than £10 were approaching 30% of sales. For a second year in a row the bestselling toy was a Squishmallows cuddly toy, costing just under £9.

Melissa Symonds, the executive director for UK toys at Circana, said consumers were “reducing their impulse purchases as they’ve been impacted by the challenging economy across the UK over the last two years”.

The fortunes of the UK toy industry are increasingly linked to a growing army of deep-pocketed kidults (buyers aged 12 and over) who account for almost 30% of toy sales. They are a key constituent of the Lego fanbase and have enough money to buy sophisticated sets that increasingly run to several hundred pounds.

Sales of building sets, led by Lego, were up 6%, with its Botanics range of flower sets attracting an older cohort of female builders to the Danish toy giant. There was also demand for toys linked to popular screen characters such as Lilo & Stitch, Despicable Me and Bluey, with licensed product sales up 3%.

The research shows children and kidults are intent on amassing armies of their favourite cuddly toys and figurines, ranging from cuddly Squishmallows and Jellycats to Sylvanian Families and Funko Pop! figures. One in five toys sold was a collectible, said Circana, with an average price of £7.59, while stickers and trading cards were also in demand, according to figures released as the annual London toy fair got under way.

But even within collectibles new trends are emerging. Kerri Atherton, the head of public affairs at the British Toy & Hobby Association, hailed the “rise of micro collectibles” (toys less than 5cm tall), pointing to demand for Lego mini-figures or the Bitty Pop! characters, also made by Funko, proving popular.

“We have seen a lot of excitement for these tiny toys that offer a significant cute factor minus the hefty price tag,” she said, pointing to the 18% increase in the number of micro collectibles sold in 2024.

Although toy stores experienced a “surge” in the week leading up to Christmas, the figures show it was not enough to prevent a fourth consecutive year of declining sales. Official figures last week showed that retail sales volumes fell 0.3% month on month in December.

“These latest figures have undoubtedly been shaped by the current unsettled economic landscape which is impacting people’s spending across a wide range of consumer goods, including toys,” Atherton said.