UK toy market returns to growth for first time in five years

Annual industry insights from the British Toy & Hobby Association (BTHA) and global market research company, Circana, unveiled today at Toy Fair in London, show the UK toy industry returned to growth in 2025 – its first growth year since the COVID-driven surge of toy sales in 2020.

Figures reveal toy sales were up 6% year on year, contributing to a sector now worth £3.9 billion. This marks a significant turnaround for the UK toy sector after several challenging years.

Toy sales increased every month of 2025 compared to 2024, showing steady recovery. Whilst the ‘kidult’ category continued its upward trajectory for those purchasing toys over the age of twelve (+10%), children’s toys for under twelves also delivered solid growth in 2025, with sales up 4% year on year, and representing 67% of overall market expenditure.

Six out of eleven major toy supercategories recorded growth in 2025, demonstrating breadth and balance across the market. Top-performing categories included Building Sets, which grew 25% and was led by LEGO ranges and Formula One, two of 2025’s fastest growing toy properties.

Traditional Games & Puzzles grew 15%, driven by strategic trading card games such as Pokémon. Action Figures & Accessories grew 16%, strengthened by film tie-ins such as How To Train Your Dragon, Jurassic Park, and K-Pop Demon Hunters generated by a rush for early toy releases in December. The Vehicles category grew by 8%, aided in part by the renewed popularity of Formula One racing in 2025, with infant and preschool toys enjoying their best performance in over eight years.

Boosted by a year of stand out entertainment properties across cinema, streaming, and sport; licensing continued to power the sector, up 16% year on year, and now accounting for 38% of the total toy market. Film-driven toys are now 16% of all toy sales (+11%), following a year of box office hits in 2025, with cinematic hits including Minecraft, Pokémon, Lilo & Stitch, and Jurassic World positively driving product lines from the likes of Spin Master Toys, Bladez Toys, and Simba Smoby UK.

Other entertainment channels such as TV and streaming grew 3%, with the help of global hits Stranger Things and The Traitors, whilst video game-linked toys surged 47% driven by Fortnite, Minecraft, and Sonic. The fastest-growing entertainment segment was racing, which soared 193%, reflecting the ongoing popularity of motorsport.

A breadth of demand and strong cross-generational appeal of the market was reflected in best-selling toys of 2025. Among the top selling items were LEGO’s Botanicals flower set, the screen-free Toniebox audio player from Tonies, and Jazwares’ soft-toy phenomenon Squishmallows, which remained a top-ten bestseller.

Commenting on the figures, Kerri Atherton, head of public affairs at the BTHA, said: “The return to growth in 2025 marks a pivotal moment for the UK toy industry after many challenging years. What is particularly encouraging is the consistency behind the recovery when trading conditions have remained tough, with toy sales increasing every month of the year and growth evident across both children’s toys and the expanding kidult market.

“This performance reflects a strong interest in toys and the sector’s ability to engage a wide audience through innovation, entertainment-led play, and strong licensing partnerships. The influence of film, streaming, and sport demonstrates an evolving era of play, where toys are increasingly embedded in wider cultural moments, enjoyed by all the family. Whilst recognising there are still challenges facing businesses and consumers, the toy industry will look to build on this success going into 2026.”

A number of popular trends continued to grow year-on-year including the collectibles craze, where more affordable items are collected as part of a series. Collectibles toys grew 12%, in 2025 driven by popular brands such as Pokémon and Funko POP. A variety of different cultural influences further played a role in shaping many market-moving trends, with brands such as K-Pop Demon Hunters, One Piece, Dragon Ball Z, and Hello Kitty contributing to the year’s collectibles boom with no signs of slowing into 2026. Notably, Pokémon was the UK’s top gaining toy property in 2025 generated by the popularity of strategic trading cards.

The average toy price rose to £12.37 (+5%), reflecting inflationary factors. Toys within the £30 – £50 price bracket gained most traction in 2025 with consumers choosing to invest in play-led experiences, with toys costing less than £5 revealed as the only pricing bracket in decline.

Melissa Symonds, executive director, UK Toys, Circana said: “2025 has marked a clear turning point for the UK toy market, with infant and preschool delivering their strongest performance since 2017. Innovation has been a key driver of that growth, with products such as Toniebox and LeapFrog resonating strongly with parents and younger children alike. Looking ahead, an action-packed year for film and TV is set to further energise the market. As we’ve seen with franchises such as Minecraft, Stranger Things, and Wicked, toys that allow both children and adults to engage with the worlds they love are playing an increasingly important role in bringing joy, connection, and fandom into everyday life.”