The report divides the market into nine product categories - infant/pre-school toys and games; activity toys; outdoor and sports toys and games; games/puzzles; dolls; action toys; vehicles; plush toys and other products.
It blames the declining child population for the slow-down in the market although it says the upturn in birth rate since 2003, is having a positive effect on pre-school toy sales. However, products aimed at older groups are yet to benefit.
The report also says toys and games market has limited scope for growth in the current competitive children's market. However, the existence of strong brands and established companies in the sector is a positive indicator it concludes.
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