NPD Insight

Rising stars

This month, Melissa looks at the areas of the UK toy market that are thriving as the industry continues to face challenging times and finds some unexpected heroes.

The start of 2022 has been challenging for the UK Toy market, with sales down -5% in value Year-To-date February, compared to the same time period a year ago. This is partly due to the UK being in lockdown in Q1 2021, and the fact that during lockdowns, many British consumers tended to purchase more high-priced toys online. Compared to the year before, the UK Toy market is actual up +4% vs 2020. However, despite the variations in the market over the last couple of years, there have still been plenty of opportunities; in particular, some of the smaller

The top ten manufacturers in the UK market account for the highest share of the market, 48% of sales in 2021. There were some strong performances in the top ten with The Lego Group and Mattel growing for the second year in a row. The top three fastest growing manufacturers in the UK were all in the top ten, with Zuru one of the fastest growing thanks to 5 Surprise, X-Shot and Rainbocorns all being on the rise. Asmodee enjoyed a strong year, driven by Pokémon strategic card games, while Moose Toys made it into the top 10 for the first time with new launches for Bluey, Real Littles and Magic Mixies all providing incremental sales. However, despite some strong performances from these manufacturers, the top ten manufacturers total value declined by -2% last year.

The top 11-20 manufacturers account for 11% of the UK market, but also declined by -3% compared to 2020, in line with the total toy market for last year. Again, there were some strong performances in this group with Jazwares, HTI and Funko all growing. Jazwares growth was driven by Squishmallows and Roblox, while HTI’s performance was driven by the Teamsterz brand and the company’s outdoor ranges. Funko saw strong licensed growth with Pokémon and Five Nights at Freddy’s, in addition to the Star Wars and Marvel items.

Manufacturers ranked 21 – 50 also declined as group, down -2% but it is worth noting the strong growth coming from Ty as the number one plush manufacturer, and Bandai with the success of CoComelon, in addition to growth from Miraculous and Tamagotchi. Elsewhere, One for Fun (formerly Grossman) had a good 2021 with last year’s craze items, push poppers/fidget toys. The Euro Championships meant that Panini also had a strong year, while puzzles growth continued for Jumbo.

However, the most impressive growth has been coming from the smaller manufacturers ranked 51 – 100. While they may account for just 6% of total sales, this group grew +4% in 2021 vs. 2020, with numerous examples of focused manufacturers in selected categories. Plush manufacturers in growth included Posh Paws with its Jurassic World range and Rainbow Designs, with Beatrix Potter and Winne the Pooh lines.

Wow Stuff also grew with its Harry Potter range, including Wands and the Invisibility Cloak, performing strongly. Toikido’s Among Us range saw both Action Figures and Plush become strong sellers in Q4 2021, and this success is continuing into 2022. Canal Toys also flourished with its So… ranges and the Style4ever brand, while Boxine showed growth thanks to Toniebox sales. Toniebox has climbed the rankings to become the No.1 item in the German toy market and has potential to continue to expand for 2022.

A strong trend is the growth of numerous manufacturers enjoying a very strong wooden toys performance, such as Toynamics’ Hape brand and 8th Wonder, which were both upversus the previous year. These are joined by vehicle manufacturers such as Mondo Motors and CMJ RC Cars. Funrise also grew thanks to its Gazillion Bubbles and Caterpillar ranges, while Cards Against Humanity added value to its strong performance in the games market.

It's always heartening to see such growth across the market, and the last twelve months has seen plenty of winning lines from smaller players offering strong ranges that truly appeal to consumers. Hopefully this growth will continue for the rest of the year and help drive the UK toy market performance for the remainder of 2022.

Item Progression:

The Harry Potter property grew +1% in 2021, while it was up +18% vs. 2019 – and it achieved this without any new movie releases. The range continues to be popular with both adults and kids. The Hogsmeade Village Visit set from The Lego Group was the Fastest Item Progression in the latest month, with a high average price of £50.36. While Building Sets is the strongest category for Harry Potter, so far in 2022 we’ve seen Action Figures & Dolls items also growing strongly, while Games and Puzzles maintain their share. With the third Fantastic Beasts movie, The Secrets of Dumbledore, out in April, Harry Potter looks likely to have another strong year.

Fastest Growing Properties in Toys

While UK toys sales in the first two months of 2022 have struggled verses the lockdown sales of Q1 2021, there are several properties that have had a strong start to the year. The Melissa & Doug range is the fastest growing property so far this year, helped by the company’s focus on sustainability and the increasing popularity of Wooden Toys, which grew +6% in 2021 vs 19 and is particularly strong in the Infant/Toddler & Pre-school sectors. Melissa & Doug is the leading manufacturer of Wooden Toys in the UK so far in 2022, with 14% share of the sector. Squishmallows from Jazwares had a strong 2021 and that growth has continued, helping to drive Traditional Plush to the be the fastest growing subclass in the UK so far in ‘22. Marvel Universe is up +33% this year, with Lego’s Infinity Saga range and Spidey & his Amazing Friends driving growth, in addition to strong Spider-Man Action Figure performance. Funko Pop! is contributing to the Collectibles growth in the market again, with Collectibles up +18%, representing a 15% share of the market. Pokémon continues to go from strength to strength in the UK, with growth of +24%. While Strategic Trading Cards is still the strongest category for Pokémon, there has also been double-digit growth in Plush, Building Sets and Games. DC Universe has also had a strong start, growing +64% YTD, with Batman driving sales ahead of The Batman film release in March. Another film licence performing well is Disney’s Encanto, with both Building Sets & Dolls items, while two strong new properties from last year which continue to grow are pre-school licence Bluey and Video Game licence Among Us.