The UK toy market grew 13% in value over the year to reach £2.64 billion, the fastest growth rate in more than 10 years, as parents return to buying toys for fun rather than educational value.
Britons bought 38 million more toys in the year to September, up 17% to 257 million on the previous year, according to industry data analyst Circana.
DreamToys 2026 list unveiled
The figures come as the DreamToys list of the predicted 15 top sellers this Christmas is unveiled. Selected by a panel of independent toy retailers and experts, the list ranges from the Mini Brands Really Works Vinyl Playset, a miniature record player that spins and plays music, to Mattel's Hot Wheels Ultimate Garage, a multi-level track playset.
Also making the list are collectibles like squishy fidget toys NeeDoh and Clickeez Bubble Pops Keyboard, a keyboard-shaped collector's case and toy set.
Lego's Creator 3-in-1 Pirate Ship, which allows for the building of three different models using the same set of bricks, and action figure Beyblades Sneak Attack Battle Set are expected to be favourites this Christmas. Pokémon is back with its Trading Card Game: 30th Celebration Elite Trainer Box, which marks three decades since the brand was first created in 1996.
Fun overtakes educational value
Research suggests that fun has overtaken educational value to become the primary driver of parents' toy purchasing decisions, according to market intelligence company The Insights Family.
The research found that children's weekend playtime with toys and games is up 10% on last year, and one in five parents of children aged three to nine say the chance to play together as a family influences what they buy.
The Insights Family said this was reflected in the list with the furReal Gabby the Grow & Roar Tiger, an interactive plush that transforms from a cub into a larger tiger, and the Primal Hatch Megalodon, a water activated robotic shark.
Gui Gui Mega Slime Haul, a sensory slime play kit, the KPop Demon Hunters Singing Fashion Dolls and the PAW Patrol Megasaurus Dino Vehicle have made the list.
Industry reaction
Tom Williams, chief executive at The Insights Family, said: "These findings highlight the important role toys continue to play in children's lives and the evolving priorities of families when it comes to choosing what to buy.
"Fun is now the leading factor in parents' toy-buying decisions, overtaking educational value, while value for money and the potential for toys to be played with repeatedly are also increasingly important.
"Parents are choosing toys that are entertaining, empowering and deliver a sense of creativity and achievement."
Melissa Symonds, executive director of UK toys at Circana, said: "Last December, more than 1,300 toys were flying off shelves every minute during the busiest shopping week, and with sales already well ahead of last year, retailers will be hoping for another bumper festive season."
Paul Reader, chairman of the DreamToys selection panel at the Toy Retailers Association, said: "2026 has been incredible for the UK toy market, with growth reaching levels we haven't seen in more than a decade.
"What's particularly encouraging is that this isn't being driven by one product or category.
"This year's DreamToys list celebrates the toy market's diversity and the products we expect to be high on children's wish lists this Christmas. From toys that spark imagination and creativity to those that bring families together, the list reflects the incredible variety of play experiences available today."
The DreamToys 2026 list, in alphabetical order, is: Beyblades Sneak Attack Battle Set, Hasbro, £44.99; Clickeez Bubble Pops Keyboard, Vivid Goliath, £29.99; furReal Gabby the Grow & Roar Tiger, Just Play, £79.99; Giftie Badge Maker, Character Options, £34.99; Gui Gui Mega Slime Haul, Moose Toys, £29.99; Hot Wheels City™ Ultimate T-Rex Garage, Mattel UK, £129.99; KPop Demon Hunters Huntr/x Singing Dolls, Mattel UK, £34.99; LEGO® Creator 3 in 1 Iconic Pirate Ship, The LEGO Group, £89.99; Mini Brands Really Works Vinyl Playset, ZURU, £19.99; NeeDoh Swirl Niceberg, Bigjigs Toys, £13.99; PAW Patrol Megasaurus Dino Vehicle, Spin Master Toys UK, £59.99; Pokémon Trading Card Game: 30th Celebration Elite Trainer Box, Pokémon, £49.99; Primal Hatch Megalodon Specimen, Spin Master Toys UK, £54.99; Starts with Ends With, Character Options, £21.99; VTech® Toy Story 5 Explore & Learn Lilypad, Vtech Europe, £24.99.