The UK’s toys and games market will be worth almost £5bn by 2022 with online sales expected to drive the sector’s growth.
Research from GlobalData predicts the market will grow 16.2% over the next five years to reach a value of £4.9bn.
Online sales are poised to contribute 84.1% of that growth, with Amazon on course to overtake Argos as the largest toy retailer in the UK by 2020.
Driven by Amazon’s growth, 43.4% of toys and games will be sold online in the UK by 2022, GlobalData forecasts.
The boom in electronic toys will accelerate, with the category set to account for 13.1% of the total toy market by 2022.
Arts and crafts, construction toys and board games will account for 30.5% of all revenues in the toys and games sector.
Sales of traditional toys will advance 15.6% over the next five years, with Smyths expected to gobble up 2.7% of that growth.
GlobalData senior retail analyst Molly Johnson-Jones said: “Amazon has managed to improve shopper loyalty with its Amazon Prime services, and impressive range of toys and 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.”
But Johnson-Jones argued that bricks-and-mortar rivals can still have an impact by focusing on ‘pocket money toys’ such as LOL Surprise Dolls and Hatchimal CollEggtibles that are popular among younger children.
She added: “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.”