Britain's toy industry has celebrated a significant rebound, with sales rising for the first time since the Covid-19 pandemic. After five years of stagnation exacerbated by the cost of living crisis, the market saw a 6% increase in 2025, reaching a total value of £3.9 billion, according to the latest annual report from market research firm Circana.
Building Blocks of Recovery: Lego and Licensed Toys Lead Growth
Analysts have hailed the figures as a definitive "turning point." The recovery was broad-based, with sales increasing every month of the year. A major driver was the building sets category, which surged by an impressive 25% compared to 2024, largely powered by the enduring popularity of Lego. The brand found particular success with sets appealing to adults, such as its floral arrangements and Formula One models.
Licensed products linked to major films and streaming series also provided a substantial boost. Toys tied to box office hits like Minecraft, Pokémon, and Jurassic World saw sales soar by 11%, now accounting for 16% of all UK toy sales. Furthermore, products connected to TV and streaming, including Stranger Things and The Traitors, grew by 3%, while video game-linked toys exploded with a 47% surge thanks to franchises like Fortnite and Sonic the Hedgehog.
The Rise of the 'Kidult' and Screen-Free Play
The market's expansion was not limited to children's playthings. A powerful force behind the recovery was the so-called "kidult" segment—buyers aged 12 and over. This group, spending their disposable income on premium Lego sets and collectibles, is now responsible for £1 in every £3 spent on toys in the UK, increasing their expenditure by 10% in 2025.
Meanwhile, the infant and preschool sector recorded its strongest performance since 2017. Devices that promote screen-free engagement, such as the Toniebox audio players which play songs and stories, resonated strongly with parents seeking alternatives to tablets and screens for younger children.
Market Shifts and Pricing Trends
The industry also navigated a shift in consumer spending habits. The average toy price rose by 5% to £12.37 as manufacturers passed on higher costs. The most sought-after price bracket was for toys costing between £30 and £50. In a notable change, traditional "pocket money" toys fell out of favour, with items under £5 being the only price category to see a decline.
Commenting on the results, Kerri Atherton of the British Toy & Hobby Association (BTHA) emphasised the consistency of the growth across both children's toys and the expanding kidult market. Melissa Symonds, Circana's Executive Director for UK Toys, noted the cultural shift: "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."
The BTHA summarised the year's performance as evidence of an "evolving era of play," where toys are becoming deeply embedded in wider cultural moments and enjoyed collectively by families.
