Nostalgia has become a powerful force in consumer behaviour, particularly in the toys and games industry. A growing demographic of adults, often referred to as "kidults", are fuelling demand for retro and classic toys, reliving their childhood through products they once loved.
Kidults fuel toy industry growth through nostalgia and pop culture revival
The kidults market is experiencing rapid growth, driven by toy brands that are strategically using nostalgia to boost sales and deepen long-term consumer engagement.
In 2023, Nintendo retained its position as the leading nostalgia-driven toy brand, generating approximately USD14 billion in sales despite a 17.6% decline from its 2021 peak
Source: Euromonitor International Toys and Games
This trend has seen a surge in the re-release of iconic products. Hasbro has revived Furby, Mattel has capitalised on the success of the Barbie film, and Nintendo has reignited interest with the NES Classic Edition. LEGO has also seen increased demand for its adult-focused sets, such as LEGO Icons and franchise collaborations. In a time of economic uncertainty, nostalgic products provide consumers with an emotional connection, offering both escapism and comfort.
Recent box office hits have significantly amplified this trend. The Super Mario Bros. Movie grossed over USD1.3 billion worldwide, leading to a surge in demand for Mario-themed merchandise, including action figures, LEGO sets, and video game sales. Similarly, the Barbie film, which surpassed USD1.0 billion, reignited global enthusiasm for Barbie dolls, driving sales across Mattel’s entire Barbie product line. The success of these films highlights how media tie-ins can revitalise classic brands and make them culturally relevant to new audiences. Additionally, Sonic the Hedgehog’s recent film adaptations have driven renewed interest in Sonic-related toys, apparel, and gaming products, demonstrating the power of nostalgia in entertainment-driven consumer behaviour.
In 2025, kidults are expected to remain a critical driver of toy industry growth, with their spending power increasing. As disposable incomes rise in certain regions, particularly in North America and parts of Asia Pacific, brands are focusing on exclusive collectibles, premium nostalgia-driven products, and limited-edition collaborations to attract and retain these consumers.
While nostalgia alone is a strong selling point, brands that integrate modern elements into classic designs are achieving the greatest success. Companies are leveraging digital technology, augmented reality (AR), and interactive experiences to keep nostalgic toys relevant for a new generation.
For example, Beyblade X has successfully repositioned itself beyond a simple spinning-top toy, branding it as a competitive sport while launching an accompanying anime series. LEGO Hidden Side and Pictionary Air combine physical play with AR functionality, attracting both nostalgic consumers and tech-savvy younger players. This blend of retro and modern play keeps these brands relevant while broadening their appeal.
Even outside the traditional toy sector, nostalgia is proving to be a lucrative marketing tool. McDonald’s Australia introduced “adult Happy Meals” featuring collectible 1990s figurines, appealing to millennial consumers who grew up with the brand. The cross-category success of nostalgia-driven products indicates that this trend is not limited to toys but extends into entertainment, food, and even fashion.
Sustaining growth in the nostalgic toys market
For brands, the key challenge is ensuring that nostalgia remains a sustainable driver of growth rather than a short-lived trend. This requires ongoing innovation, strategic partnerships, and cultural adaptability.
Regional preferences are shaping how brands tap into nostalgia.
Asia Pacific remains the largest toys and games market, projected to surpass USD110 billion by 2029, driven by rising disposable incomes and strong consumer engagement
Source: Euromonitor International
Between 2019 and 2023, North America’s toys and games market grew by over USD20 billion, highlighting sustained demand in the region.
In Asia, anime-inspired collectibles and retro gaming consoles drive strong consumer interest, while in Western markets, vintage action figures and board games are seeing renewed demand. Toy manufacturers are increasingly using cross-platform storytelling, such as launching animated series, films, and digital content alongside nostalgic toy lines, to keep audiences engaged.
Ultimately, nostalgia is proving to be more than just a passing trend and it is reshaping the toy industry’s long-term strategies. The brands that successfully merge nostalgia with innovation, exclusivity, and digital engagement will be best positioned to thrive in this evolving market.
Other than nostalgia, other evolving trends like sustainability and digital innovations will reshape the toys and games market.
Read our report, Nostalgia, Sustainability, and Digital Innovation Reshape the Toys and Games Industry, to understand how brands can leverage these powerful forces.