Sales of traditional toys have remained resilient despite economic uncertainty, with a notable shift in consumer demographics and preferences. One of the most significant developments is the emergence of the “cute economy”, driven by adult consumers (kidults) increasingly purchasing toys for themselves. “Grown-up playtime” is now one of the top five trends shaping the toys and games industry in 2025. This trend highlights how adults are driving demand for toys and games, especially collectibles and nostalgia-driven products. Play is now embraced as self-expression, stress relief, and joy for all ages, not only children.
Big kids are big business
The rise of kidults reflects broader demographic and cultural shifts. Declining birth rates and more single-person households have led to higher discretionary spending among adults. Funko, for example, reported its average customer age is now 40, with core collectible sales growing by 11% year-on-year in Q4 2024.
Toys are increasingly seen as emotional anchors, offering escapism and control during uncertain times. Kidults are now a key growth driver for both traditional toys and video games. Companies that fail to engage this demographic risk stagnation, while those that succeed can unlock new revenue streams in premium, high-margin categories.
“China chic” taking the world by storm
In China, Pop Mart recorded a massive jump in sales, with its value share of dolls and accessories rising from 48% in 2023 to 70% in 2024
Source: Euromonitor International
The brand taps into the “China chic” trend, blending traditional cultural elements with modern design to appeal to young, trend-conscious consumers. Southeast Asia is Pop Mart’s largest overseas market, with sales more than doubling in a year. Unlike some toy companies that have shifted to e-commerce, Pop Mart’s success in the region comes from its aggressive expansion of retail stores.
52TOYS, another key player, filed for an IPO in Hong Kong in May 2025. The company aims to use the listing proceeds to expand globally and compete with incumbents like Pop Mart by expanding its intellectual property (IP). It will become the third mainland toy firm listed in Hong Kong, following Pop Mart and Bloks.
Cuddling to success
Global plush toy sales grew to nearly USD5.4 billion in 2024, with Squishmallows as the market leader. They’ve gained popularity among adults seeking emotional comfort and stress relief. Their soft texture and the activity of hunting specific characters offer a calming distraction. Inclusive character narratives, featuring diverse identities including non-binary individuals and characters with disabilities, enhance relatability and position Squishmallows as emotionally resonant companions. A vibrant community of enthusiasts has emerged, organising meet-ups, trading plushies, and engaging with influencers on social media.
Star power adding glister to the cute economy
Social media has played a significant role in amplifying the cute economy. Celebrities and influencers have validated the link between plush toys and emotional wellness. Pop Mart’s success was boosted by social media exposure. Lisa (a K-pop idol from Thailand) triggered a frenzy for Pop Mart’s Labubu in Southeast Asia after sharing photos with the toy in 2024. Similarly, Charli D'Amelio and Lady Gaga have expressed fondness for Squishmallows. Lady Gaga even called them her “real friends”, reinforcing the emotional connection many consumers feel.
Cute has enduring appeal
The popularity of Pop Mart and Squishmallows illustrates how brands can thrive by aligning with evolving consumer values. Another factor in the popularity of these toys is their affordability. Most of these blind box collectibles and plush toys are priced affordably, starting from USD10, making them accessible even amid economic uncertainty. This low price point, combined with the thrill of discovery, has helped sustain consumer interest across diverse income groups. The cute economy, driven by nostalgia, affordability, and emotional resonance, is reshaping the global toys market. As the line between childhood and adulthood continues to blur, the demand for playful, collectible experiences is expected to remain strong.
Read our reports, The World Market for Toys and Games and Top Five Trends in Toys and Games to understand how the traditional toys and video games market will evolve over the forecast period.