The UK Toys & Games Market 2017 - 2022

The UK Toys & Games Market 2017 - 2022


Toy & Games market has one of the highest online penetrations of any retail category, with 36.8% of toys & games shopping done online in 2017. This will grow 6.6ppts to see the online toys & games grow to hold 43.4% of sales in 2022 - equivalent of £1,425.3m. As online is such a force in the market, bricks and mortar retailers must focus on the in-store experience in order to drive footfall and consumer engagement, such as in Hamleys, which we have made our 'best in class' retailer.

United Kingdom toys & games market will grow 16.2% from £3.87bn in 2017 to £4.49bn in 2022. Growth will be driven in part by innovation in electrical toys (+28.5% 2017-2022), as millennials who grew up with technology begin having children. At the other end of the market, a return to traditional toys has begun as adults seek to create a more 'wholesome' play-time away from on-screen entertainment. This is largely driven by older parents and grandparents, with 55-64 year-olds the largest buyers of arts and crafts, and over-65s buying the most construction toys. Arts and crafts will see 28.3% growth from 2017 to 2022 and construction toys will grow 17.7% for the same period.

Toy purchasing is relatively consistent across all regions and income bracket. London has the highest penetration of toy sales at 34.5%, and 25-34 year-olds purchase the most toys, with 48.1% of this age group buying toys in 2017. Consumers in the AB and C1 income brackets buy the most toys, with 35.5% and 35.2% purchasing toys respectively.

Amazon Prime has precipitated the growth of Amazon to become the toy retailer with the highest customer loyalty. 61.2% of customers shop at Amazon frequently, significantly higher than Argos, with the second highest customer loyalty with 47.8% shopping there regularly. Amazon Prime's delivery subscription, broad range, ease of use, and lowest prices in the market all encourage toy consumers to use Amazon.

Amazon will overtake Argos as the number-one toy retailer in the UK by 2020, holding 11.3% market share (and gaining 3.7ppt of share from 2017-22). Currently, Argos is the top toy retailer in the UK with a 12.0% market share, followed by Smyths and Amazon, both holding a 9.6% market share. Toys R Us has been in a crisis this year, declaring bankruptcy in the US and suffering falling sales that have caused its market share to fall from 8.7% in 2016 to 8.0% in 2017. Its dated website and uninspiring instore experience have led to its poor sales performance.

The report The UK Toys & Games Market 2017 - 2022, offers comprehensive insight and analysis of the market and categories; forecasts out to 2022; the major players; the main trends; and consumer attitudes. It provides in-depth analysis of the following:

    the hot issues impacting the market (digital disruption, latest innovations, the impact of the box office and the growth of toys for adults); strategies for success; market and category sizes and forecasts; retailer profiles; retailer market shares; consumer data; and future outlook.

    Companies mentioned in this report: Amazon, Argos, Smyths, Toys R Us, Tesco, Asda, Sainsbury’s, Morrisons, Shop Direct, The Entertainer, Disney Store, LEGO, B&M, The Early Learning Centre, Aldi, The Works, Home Bargains, Wilko,, Harrods, John Lewis, Hamleys

    • Toy specialists are threatened by online which will represent almost half (43.4%) of UK toys & games sales in 2022. Specialists must focus on delivering an exciting instore experience to create key destinations for family shopping trips, as well as making sure they have competitive online capabilities to compete with Amazon and Argos.
    • We forecast electrical toys will be the fastest growing category over the next five years. The pairing of electronic toys with apps (for example, Furby connect and Hatchimals) alongside technological innovations such as using augmented reality and voice control will drive this growth. Shifting generations will also support higher spend on electical items with millennials, who are accustomed to technology, embracing innovation-led toys for their children.
    • The mindfulness trend and the desire to maintain some away-from-screen play has driven a shift to non-digital entertainment for grown-ups through arts & crafts and puzzles & board games. Collectibles such as LEGO and action figures are also experiencing strong growth from the adult market, driving spend per head and a slight increase in shopper penetration.
    Reasons to buy
    • Recognise the impact of online pureplays and the dominance of Amazon and how toy specialists can compete and mitigate against the rise of online.
    • Find out which toy brands, licences and characters are the UK’s favourite by utilising our consumer data. Also understand what consumers are planning to buy this Christmas and what they prefer when shopping for toys & games.
    • Understand how the market is shifting in favour of electrical toys as the generations having children moves on and electrical toys become more advanced. Use this to plan stock and supplies for the future years and know which toys & games categories will be most affected as electrical toys grow.
    • Understand how the box office will impact the toys & games market over the next five years and what retailers should leverage when films are less successful than expected and fail to win sales.
    • Use our best in class and worst in class instore and online retailers to understand the do’s and don’ts of toys & games retailing as well as taking inspiration from what competitors are doing in the market.
    • Use our market share forecasts to 2022 to identify the winners and losers in the toys & games market, and understand what steps those losing share should take to protect their ground.

  • The hot issues
    • Market drivers and inhibitors in toys & games
    • Main issues in toys & games
    • Potential films to impact the market
    • Main issues in toys & games
    • Toys & games case study
    • Strategies for success
  • What people buy
    • Headlines
    • The sector at a glance
      • Table The sector at a glance
    • Overall sector size
    • Overall sector growth
    • The sector in context
    • Market share
    • Category dynamics
    • Category dynamics: soft toys
    • Category dynamics: outdoor toys
    • Category dynamics: construction toys
    • Category dynamics: electronic toys
    • Category dynamics: board games and jigsaws
    • Category dynamics: doll houses/rail sets etc.
    • Category dynamics: art toys
    • Category dynamics: action figures
    • Spend per head
      • Table Spend per head on toys & games in 2017
  • Where people shop
    • Headlines
    • Channels of distribution
      • Table Channel split for toys & games 2017e-2022e
    • Market share
      • Table Five-year market shares
    • Key metrics
      • Table Comparative metrics for leading retailers
    • Visited retailers
    • Purchased retailers
    • Conversions
      • Table Conversion rates: from visited to purchased
    • Retailer profiles
    • Case study
    • Online offering
      • Table Prices of top toys for Christmas 2017
    • Best in class instore
    • Worst in class instore
    • Best and worst in class online
    • Competitor dynamics
      • Table Competitor overlaps
  • How people shop
    • Headlines
    • Who shops and where they are located
    • What people purchase
      • Table Products purchased at when shopping for toys & games
    • Who shops and where they are located
    • Online dynamics
    • Channel used by consumers
    • Fulfilment methods used by consumers
    • Frequency of shopping
    • Retailer shopping frequency
    • Popular toys & games 2017
    • Net agreement statements
  • Methodology
    • What is included and methodology
    • Market sizing

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