The UK toy industry suffered “difficult” trading conditions last year due to falling consumer confidence as a result of Brexit and the snap general election, manufacturers have said.

The British Toy and Hobby Association (BTHA) – which represents more than 80% of the industry in the UK – released fresh figures showing that overall sales had slumped by 6% to £3.2bn in 2019 amid high street gloom. However, online sales of toys and games were up 2% over the 12 months to give a 37% market share.

Predictions that 2019 would be “the year of the movies” failed to materialise, with many blockbuster titles such as Frozen II and Star Wars launched too late – and too close to Christmas – to give the sector a much-needed boost. However, the UK remains the fourth largest market in the world, after the US, China and Japan, and the largest in Europe followed by Germany.

Natasha Crookes of the British Toy and Hobby Association said: “2019 was an unusual year by any standards. The ongoing question that is Brexit undoubtedly had a dampening effect on consumer confidence while a general election in the middle of the busiest trading month of the year wasn’t helpful.”

Typically more than half of all toy sales take place in the fourth trading quarter from October to December, and with 26% in December alone, in the immediate run-up to Christmas. But the calling of the general election for 12 December had made consumers “distracted and worried”, Crookes said.

She was speaking at the London toy fair, a three-day BTHA event at the Olympia in West Kensington in its 67th consecutive year, which featured hundreds of exhibitors showcasing toys and games likely to be popular next Christmas.

“We are entering a new era with many structural and economic changes ahead,” said Frédérique Tutt, global toy analyst at the NPD Group. “The toy market is no exception to other retail sectors and is in a transition period, adjusting and recovering from a challenging 2019 while finding its path for the future. Despite strong leading brands and licences, toy sales declined by 6% in 2019.”

Despite the challenging trading conditions, the toy industry continued to innovate, the BTHA said, with more than 32,000 new products launched in 2019. Action figures enjoyed a 9% growth in sales, driven by Fortnite, Avengers and Toy Story, while board games and puzzles have generally proved their resilience, with a 1% increase.