Sam Holmes, Toy Valuer at Potteries Auctions, shares the latest insights on Britain’s booming toy industry
Sam Holmes, Toy Valuer and Auctioneer at Potteries Auctions
Q: Let’s start with the basics, just how big is the UK toy market?
We’re talking about a £3.3 billion industry here, which makes it one of Europe’s heavyweights. To put that in perspective, British families spend an average of £200 per child annually on toys. It’s a market that supports over 10,000 jobs and continues growing at a steady 3-4% each year. Not too shabby for an industry some people think is all child’s play. As we move through the rest of 2025, toy collecting has become more popular than ever.
Q: Who are the major players dominating the market?
The usual suspects, really. LEGO continues its reign with those addictive building sets that appeal to all ages. Hasbro brings us Nerf, Transformers, and My Little Pony, while Mattel keeps Barbie, Hot Wheels, and Fisher-Price going strong. Spin Master’s made waves with Hatchimals and PAW Patrol. Together, the top five companies control about 50% of the market, leaving the rest for smaller innovators and niche brands. In 2025, these brands continue to dominate both retail and auction markets.
Q: Something interesting happened during the pandemic, didn’t it?
Absolutely. COVID-19 turned the market on its head. Physical retail took a beating during lockdowns, but online sales exploded. Parents desperate to keep their kids entertained became our best customers. That surge didn’t just disappear when restrictions lifted, it fundamentally changed how people buy toys. That digital shift is here to stay. Now, toy collecting has become firmly established as both a hobby and an investment strategy.
Q: I keep hearing about “kidults”, what’s that all about?
This is really one of the most exciting developments we’re seeing. Kidults are adults buying toys for themselves, and they now account for 29% of total toy spending. That’s nearly a third of the market. Adult toy purchases have jumped 25% over the past five years. We’re seeing grown-ups snapping up everything from LEGO’s botanical range to vintage collectables, driven by nostalgia, stress relief, and the need to reconnect with simpler times.
A collection of boxed Medieval Lego including Castle 6077, Knights 6103, Knight on Horse 6009 & Wagon 6038, Castle 6048, sold for £220
Q: So, nostalgia is a big deal then?
Massive. Think about it, Millennial and Gen Z parents want to share their childhood favourites with their kids. Care Bears, Paddington, Pokémon, Rubik’s Cubes, they’re all having a moment. Even Tamagotchis are making a comeback with tech enhancements. The market was valued at £3.4 billion in the 12 months to September 2024, and nostalgia’s a huge part of that growth. For those serious about toy collecting, these nostalgic items often command premium prices at auction.
Q: What about collectables? Are they worth investing in?
Now you’re talking serious money. The collectables segment, trading cards like Pokémon and figurines like Action Man, Barbie, Star Wars, and LEGO, was valued at $19.2 billion globally in 2023. It’s projected to hit $45.2 billion, which tells you everything about the profit potential.
Limited editions and vintage items are appreciating nicely, making them attractive to collectors who see them as investments, not just toys. Toy collecting in 2025 has matured into a sophisticated market, with auction houses like Potteries Auctions seeing record attendance and hammer prices.
Palitoy /Kenner, Star Wars, a group of loose vintage 3 ¾” Star Wars action figures, sold for £880
Q: What categories are hot right now?
Educational and STEM toys are claiming about 20% of the market as parents prioritise learning. But don’t count out traditional toys, dolls, action figures, and board games which still hold 35% of market share. Building sets lead British purchases, and we’re seeing a resurgence in board games and puzzles, especially among adults seeking social interaction.
Licensed toys tied to Star Wars, Marvel, and Pokémon franchises continue performing brilliantly. Throughout 2025, these categories have consistently topped auction results, making toy collecting particularly lucrative for those who focus on these evergreen favourites.
Q: When’s the best time to buy or sell toys?
Christmas remains king. Nearly 50% of annual sales happen in the final quarter. But Easter and back-to-school season also see spikes, particularly for educational toys. If you’re a collector looking to sell, at Potteries Auctions, we have regular toy auctions year-round, which can hit these peaks and make a significant difference in hammer price. Our 2026 auction calendar has been carefully planned to maximise returns for serious toy sellers, with special themed auctions throughout the year.
A selection of Lima and Tri Ang OO Gauge Diesel Locomotives which were only estimated at £20 – £40 but achieved a hammer price of £110 in our December 2024 auction, just a week before the holiday season
Q: What about sustainability? Is that just marketing hype?
Not at all. Environmental consciousness is driving real change. Consumers are demanding eco-friendly toys made from sustainable materials, and manufacturers are responding with recyclable packaging and greener practices. This isn’t going away; sustainability is becoming a core value across the industry.
Interestingly, vintage toy collecting aligns perfectly with sustainability principles, as collectors preserve and recirculate existing toys rather than contributing to new production. Many 2025 auction catalogues highlight the eco-friendly aspect of buying pre-loved collectables.
Q: Here’s the scary question, what about fakes?
It’s a genuine problem. Recent seizures have uncovered millions of pounds worth of counterfeit toys failing safety standards. These fakes often contain toxic chemicals, have choking hazards, or electrical faults. Red flags include unrealistically low prices, unfamiliar third-party sellers, missing UKCA or CE safety marks, poor packaging quality with spelling errors, and products with strong chemical smells or loose parts.
Always buy from trusted retailers or from auction houses whose experts have an eye for fakes. At reputable toy auctions in 2025, every item is authenticated, which is crucial for serious toy collecting. This authentication process protects both buyers and sellers, ensuring the integrity of the market.
Q: What’s the future looking like?
Bright actually. Technology integration is accelerating, things like smart toys with app connectivity and augmented reality experiences are making an appearance. There’s a growing emphasis on inclusivity and diversity in toy design. The kidult trend shows no signs of slowing.
Innovation in electrical toys will drive growth, while interestingly, we’re also seeing a return to traditional toys as families seek alternatives to constant screen time. As we progress through 2025 and beyond, toy collecting will continue evolving, with auction houses adapting to meet the needs of both traditional collectors and new digital-savvy enthusiasts entering the market.
Boxed play worn Dinky Gift Set No.298 ‘Emergency Services’ to include four vehicles and Nine Servicemen, sold for £360
Q: Any final advice for collectors or investors?
Do your homework. Whether you’re collecting vintage Dinky cars, Star Wars figures, or modern LEGO sets, authenticity matters. Stick with reputable auction houses and dealers who’ll clearly identify reproduction items. The market’s robust, but competition from online retailers and digital entertainment means you need to be strategic.
Focus on licensed products, limited editions, and categories with proven growth like collectables and building sets. For anyone serious about toy collecting in 2025, attending physical auctions remains invaluable, you can inspect items in person, network with fellow collectors, and benefit from expert valuations. The toy market and community thrives on these face-to-face interactions, and auction previews offer the best opportunity to learn and grow your collection wisely.
Thinking about selling your collections?
If you have an individual valuable toy or a collection you are thinking of parting with, Potteries Auctions have multiple Toy & Collectables sales throughout the year for you to sell your items.
Our team are available every Tuesday from 9am-3:30pm at our Silverdale saleroom or Thursday at the Cobridge saleroom, where they can value your items and advise you on consigning to auction. To book a free in-person appointment, use our form here. Alternatively, if you would like an online valuation, fill in this form.
You can also email us at enquiries@potteriesauctions.com, or call us on 01782 638100 for further details.