By Molly Johnson-Jones, Senior Retail Analyst at GlobalData
The UK toys & games market will grow 16.2% over the next five years, reaching a total value of £4.9bn, according to research and consulting firm GlobalData.
The company's latest report analyses the discount retail market in the UK, finding that the majority of growth for the sector will be through online. Online will contribute 84.1% of the total toys & games market growth for 2017-2022.
Amazon will overtake Argos to become the largest toy retailer in the UK in 2020. 51.4% of toys & games shoppers visited Amazon in 2017, showing that the retailer is seriously threatening traditional toy retailers.
As Molly Johnson-Jones, Senior Retail Analyst from GlobalData Retail explains: "Amazon has managed to improve shopper loyalty with its Amazon Prime services, and impressive range of toys & games. Prices on this year's must-have toys are lower than its competitors, its range is unrivalled, and the convenience of its offering is market-leading".
Electronic toys, and traditional toys will support strong market growth out to 2022. Electronic toys will grow to hold 13.1% of the total toy market in 2022; and arts & crafts, construction toys, and board games will hold a total of 30.5% for the same period.
Johnson-Jones adds "electronic toy growth is not changing the market yet, as older parents and grandparents still choose traditional toys over toys which bridge the interface between physical and digital play. However, as millennials who grew up with digital entertainment start to have families, electronic toy sales will increase, and their simultaneous desire to do more 'wholesome' activities will mean that the strong growth of traditional toys will continue."
Pocket money toys have experienced the most innovation 2017 with best-sellers such as LOL Surprise Dolls and Hatchimal CollEggtibles.
Johnson-Jones explains: "the UK has always been a highly playground trend driven market, but this year has seen unusually high levels of innovation in toys under £10. Now that children are driving a portion of sales growth in the toy market, it is more important than ever for bricks and mortar retailers to create an engaging and immersive environment for young toy shoppers".