Traditional toys remain popular in the face of competition from the video games industry.
This year's Toy Fair has kicked-off in London with new product ranges from companies including Meccano and Playmobil.
Buyers from big chains like Argos and Toys ‘R' Us are already on the look-out for next Christmas' must-have gift.
One of the biggest stands belongs to Lego which is celebrating its 50th birthday. As well as its popular Mindstorm robotic sets, the company is launching an Indiana Jones range to tie-in with the upcoming new film.
Another classic toy proving popular at the show is Scalextric.
Despite the popularity of video games such as Gran Turismo and Ridge Racer, sales of Scalextric have risen in the past year.
Its 2008 range includes tie-ins with Top Gear and the upcoming James Bond film, Quantum of Solace.
As well as old-timers, there's plenty of new products on display including iTeddy, which is a cross between a teddy-bear and a portable video player. It first came to public attention on TV show Dragons' Den. Since then it's been only been available through Argos.
However its Dragon backer Peter Jones told Newsbeat they have just signed a worldwide distribution deal.
Walking round the show there is a huge range of products on display. From plastic cement mixers for the budding builder, to springy stilts which strap onto your legs.
Toys follow trends like any other industry. Richard North from the website Wowstuff.co.uk said it was already clear what was going to be big in 2008.
He added: “You're going to see a lot more activity products, things that are normally confined to outdoor sporting activities. You'll see an angle on those to bring them into the toy industry. Also helicopters which were big at Christmas will have new angles on them with new features.”
The Toy Fair 2008 runs until the 2 February.