Nostalgia, Sustainability, and Digital Innovation Reshape the Toys and Games Industry

February 2025

Nostalgia, sustainability and digital integration are transforming toys and games. The kidult market thrives on innovation blending classic themes with modern twists. Sustainability demands push brands towards eco-friendly practices while AR and AI redefine interactive play. Emerging markets with tech-savvy younger demographics offer significant growth potential. Success lies in tailoring regional strategies and balancing affordability and innovation to meet evolving consumer expectations global

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Key Findings

Reviving playtime with nostalgia

Nostalgia-driven products are redefining the toys and games industry, with kidults emerging as a critical demographic. Brands must innovate beyond nostalgia, combining classic themes with fresh features to sustain long-term engagement.

Sustainability: From trend to imperative

Eco-conscious consumers are reshaping market demands. While brands set ambitious sustainability goals, gaps in affordable, scalable solutions underscore the need for material innovation and streamlined green supply chains.

Digital play redefined

The integration of AR, AI and app-based experiences is transforming play. To unlock the full potential of digital engagement, brands must address high development costs and expand accessibility in emerging markets.

Emerging markets: The next frontier

With developed markets nearing saturation, regions like Southeast Asia and Latin America offer untapped potential. Catering to young, tech-savvy consumers with localised, digital-native products is key to capturing these high-growth opportunities.

Hybrid play: Where physical meets digital

Bridging physical and digital play is driving industry innovation. Rapidly scaling hybrid products like LEGO Hidden Side can unlock global appeal, but success hinges on strategic partnerships and omnichannel execution.

Why read this report?
Key findings
Key drivers of change
Key drivers in toys and games
Nostalgia driving the kidult market
Industry growth through cross-platform strategies
Understanding nostalgia and the kidult market
McDonald's Australia introduces adult Happy Meals
Beyblade targets adults with “X” and is revitalised in Japan
Banco Imobiliário , captivating younger and older consumers through innovation
Redefining nostalgia and kidults: A new playbook for toys and games
Rising focus on sustainability in the toys and games industry
Key sustainability trends in consumer choices
A regional view of consumer expectations on sustainable packaging
Driving forces behind sustainability and eco-innovation
Toy Maker of Lunenburg leverages sustainable materials for unique puzzle
Cape Town toy factory turns old milk bottles into toys
LEGO Korea launches five new series targeting girls to boost its sales
Tesco and Hasbro launch recycling initiative with Wastebuster
Moving beyond plastic: The eco-toy movement
Rewriting the sustainable playbook for the toys and games industry
The surge of mobile and online gaming in digital play
Driving forces in digital integration and interactive play
The emergence of AR, VR, and app-driven interactive play
Emerging markets growing in importance as US falters
Miko Mini provides affordable AI toy catering to privacy-conscious parents
VTech Partners with Paw Patrol to launch interactive, e-educational toy watch in Poland
Alpha Group Expands IP Influence via Children's TV Channels
Minecraft Education hosts competitions that teach sustainability principles
Driving engagement through digital innovation in toys and games
Opportunities for growth through capitalising on trends
Unveiling strategic opportunities in the toys and games industry
Evolution of playtime: How consumers are redefining toys
Questions we are asking

Toys and Games

This is the aggregation of traditional toys and games and video games.

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