Lily Allen is developing a sex toy.

The 34-year-old singer believes the celebrity sex toy market needs to be ''capitalised'' on, so she has set about making a device to enhance female bedroom pleasure.

Speaking at the Port Eliot Festival - where she was conceived, when it was known as Elephant Fayre - in Cornwall, south west England, she told the crowd: ''I am developing a sex toy. It is a clitoral massager.

''I probably shouldn't talk about it. I haven't done a press release or anything like that.

''Orgasms are important, ladies, and I feel like the celeb sex toy market hasn't been capitalised upon.''

Lily - who has two kids, Ethel, seven, and six-year-old Marnie with ex Sam Cooper - also admitted she finds it ''soul-destroying'' when fellow musicians are busy working on brands they don't have an interest in.

She is quoted by The Sun newspaper's Bizarre column as saying: ''Musicians running round on brands you have no interest in is soul-destroying, but I am happy to talk about this thing.''

News of Lily's voyage into the sex toy industry comes just weeks after it was reported Mel B is planning to launch her own line of sex toys.

A source said: ''Melanie has had lots of chats with British ladies who have been bemoaning the range of sex toys. One asked hereabout a vibrator that looks like a lipstick but you can't get it in the UK and they don't ship them over here - it's very frustrating.

''Mel's researched what's available. She's had talks about designs and a range - there will be a splash of leopard print. Her aim is to have an upmarket range. Gwyneth Paltrow does sex toys but Mel's will be designed for the British market.''

Last year, Gwyneth Paltrow released a $4,000 ''dirty weekend sex kit'' through her lifestyle website Goop, which featured a range of items from a $82 massage oil to a 24-carat gold sex toy costing $3,500.