Revealed: The top 10 "must-have" Christmas toys for 2014

The hot toys expected to top your little ones' Christmas lists this year have been revealed.

The Toy Retailers Association has released its annual DreamToys list, which includes merchandise from the Disney blockbuster Frozen, the £39.99 Vtech Kidizoom Smart Watch, the £58.99 My Friend Cayla doll and collectable Minecraft figures, which cost from £7.99.

Also making the top 12 are Bop It! Beats which combines the original game with songs from popular artists, the £19.99 Little Live Pets Bird Cage, the £44.99 Nerf Demolisher 2-in-1 and the £80 Lego Movie spaceship.

DreamToys committee chairman Gary Grant said: "It's great to see creative and sharing toys sitting alongside more traditional toys or toys that facilitate a bit of rough and tumble. And with nearly half the list priced under £25, it is relevant for all consumers this Christmas.

"All of the toys on this list will undoubtedly be popular this Christmas, so our advice is to shop early to avoid disappointment."

The NPD Group predicted that an increase in spending on toys this Christmas would take annual sales to more than £3 billion, an increase of £166 million in one year.

It said the growth was due to continued interest in interactive and internet-connected toys, strong sales in classic categories such as building sets and arts and crafts as well as new, highly anticipated products coming to the market in time for Christmas.

Increased interest in low-priced and collectable toys such as Panini stickers and Lego mini figures had also spurred healthy growth in impulse-buying, and also meant the average price for toys dropped from £7.69 to £6.95.

Meanwhile, three toys related to Frozen are among the year's top 10 sellers, with sales currently stronger than they were after the film's initial release, NPD said.

NPD Group toys analyst Frederique Tutt said: "The British toy market is leading resurgence in toy sales in Europe.

"The innovation that the industry has invested in has also started to pay back. Impulse sales of collectibles and lower-priced toys are up as well as licences from movies including Frozen, and this year's craze, loom bands.

"These two factors combined delivered the fastest growth rate in toy sales since 2010 which suggests that Christmas 2014 might be the best for some time."