Press release -
HARD YEAR FOR TOY INDUSTRY BUT THE UK STILL REMAINS THE LARGEST TOY MARKET IN EUROPE
Licensed toys, action figures and games and puzzles shine within a tough market
21st January 2020, London: In line with many other sectors, the toy industry endured difficult trading conditions in 2019 with a -6% drop in year on year sales. Total sales for the year were £3.2 billion, which still makes the UK toy market the largest in Europe, but with Germany now a very close second.
The results were announced at Toy Fair, taking place at Olympia London this week, where hundreds of toy companies gathered to launch thousands of new and innovative products for the year ahead.
“2019 was an unusual year by any standards. The ongoing question that is Brexit undoubtedly had a dampening effect on consumer confidence whilst a general election in the middle of the busiest trading month of the year wasn’t helpful,” commented Natasha Crookes, Director of Public Affairs and Communications at the British Toy and Hobby Association.
Despite the poor trading conditions the toy industry continued to innovate, with over 32,000 new products launched in 2019. Action figures achieved 9% growth whilst board games and puzzles enjoyed a 1% increase. Collectables also continued to dominate the market, with sales equivalent to 21% of all toys sold.
2019 was predicted to be the Year of the Movies. Despite a slow start films played a big part in driving the market forward with 11% of total sales, up from 10% the previous year. However, they could not turn the market around at the back end of the year, as some key blockbuster titles were launched so close to Christmas.
Due to its late release, Frozen is expected to power the market in the first six months of the year. For the rest of 2020 and in the absence of a new craze so far, it will be the toy brands themselves which are expected to be the big market drivers, as the market looks open for toy companies to make their mark.
"We are entering a new era with many structural and economic changes ahead,” commented Frederique Tutt, global toy analyst at the NPD Group. “The toy market is no exception to other retail sectors and is in a transition period, adjusting and recovering from a challenging 2019 whilst finding its path for the future. Despite strong leading brands and licences, toy sales declined -6% in 2019. Looking ahead, the industry is resourceful and knows that creativity, innovation and agility will play a key part in getting back to growth."
Play value continues to be important, with strong sellers in everything from traditional card and board games to more technology driven toys. Toys grounded in core play values are predicted to perform well this year, with demand from young children through to the growing kidult market.
A new report from Kids Insights, launched today at Toy Fair, revealed that board games especially are more popular than ever. Over a third of kids aged six-to-nine play with classic board games such as Monopoly, Guess Who and Jenga monthly. The report also revealed a positive link between playing board games and wellbeing, as tweens who play board games reported feeling above average happiness and less anxiety.
Looking ahead, whilst the UK’s final trading position with the European Union remains unclear, the UK will be exiting the EU at the end of 2020 and the BTHA has robust, comprehensive plans to help support the UK toy industry through every eventuality.
“January 2020 is a very different proposition to January 2019. It’s now not if, but how, we exit the European Union; and just that simple change means that we’re able to provide our members with a lot more practical advice, and they are able to invest in a known eventuality,” concluded Crookes.
Follow the latest Toy Fair news on Twitter at @toyfairuk. Toy Fair is the UK’s largest trade exhibition dedicated to the toy, game and hobby market. The event opened at the Olympia in London on 21st January and remains open until Thursday 23rd
PLEASE NOTE: TOY FAIR IS A TRADE ONLY EXHIBITION AND IS NOT OPEN TO MEMBERS OF THE PUBLIC.
Notes to editors:
For more information please contact
Bastion
toyfair@bastion.co.uk
Toy Fair Press Office (Tuesday 21st – Thursday 23rd January): 020 7598 6514
Bastion Office: 020 3927 6430
The full Kids Insights report can be read here.
Categories
About Toy Fair
Toy Fair is the UK’s largest dedicated toy, game and hobby trade exhibition taking place at Olympia London. The event takes place over three days at the end of January each year and plays host to hundreds of exhibitors, from startups to some of the biggest toy companies, launching thousands of new toy lines.
Toy Fair 2020 takes place from Tuesday 21st – Thursday 23rd January. Press day is Tuesday 21st January. To register for a press pass, visit www.toyfair.co.uk.
Please note the opening times are 09:00-18:00 Tuesday 21st and Wednesday 22nd, and 09:00-17:30 Thursday 23rd January.
About the BTHA
The British Toy & Hobby Association was established in 1944 to represent the interests of British toy manufacturers and to raise standards of practice in the industry. Today it has around 150 members ranging from international toy giants to small family-run businesses that together account for more than 80% of the UK toy market. Membership of the British Toy & Hobby Association shows the member’s commitment to adhere to the BTHA Code of Practice under the umbrella of the Lion Mark which includes rules covering ethical and safe manufacture of toys, toy safety, a ban on counterfeit goods, an assurance to market responsibly, a commitment to improving sustainability and a desire to promote the value of all play through support of the Make Time 2 Play campaign. Our members are manufacturers committed to making good quality toys in a responsible way. The BTHA also administers the Toy Trust - the industry’s charity.
About The NPD Group, Inc.
The NPD Group provides market information and business solutions that drive better decision-making and better results. The world’s leading brands rely on us to help them get the right products in the right places for the right people. Practice areas include apparel, appliances, automotive, beauty, consumer electronics, diamonds, e-commerce, entertainment, fashion accessories, food consumption, food service, footwear, home, mobile, office supplies, retail, sports, technology, toys, video games, and watches / jewelry. For more information, visit npd.comand npdgroupblog.com.
About Kids Insights
Kids Insights is the global leader in kids’ market intelligence. The company which now surveys more than 2,000 children every week, across 3 continents and 7 countries, or more than 105,000 children a year, and has gained a reputation as the most comprehensive and dynamic market intelligence specialist in kids, tweens and teens; and whose market intelligence is used by companies such as the BBC, Egmont, F1, Oxford University Press, SEGA, Turner, and Warner Bros and who recently won the coveted International Trade Council Global Market Research Company of the Year Award. For more information on Kids Insights and the market-leading insights into the latest kid’s trends they can offer your business, please visit www.kidsinsights.com.
