Top Five Trends in Toys and Games

June 2025

Amid global uncertainty and financial strain, consumers are turning to toys and games for nostalgia, comfort, escapism and social connection. Five key trends from the rise of kidults to cross-industry collaborations are reshaping the industry, offering companies new ways to engage new demographics and unlock new revenues.

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Key Findings

Grown-up playtime

Kidults are driving demand for collectibles, nostalgia-based IPs and sophisticated play experiences. This reflects a cultural shift where play is embraced for emotional wellness, identity and escapism.

Cloud-driven commerce

Digital distribution, livestream selling and DTC models are reshaping how consumers discover and purchase toys and games. Cloud platforms enable companies to reach a wider audience, allows personalisation and generate recurring revenue.

Smart play experiences

AI and tech integration are transforming toys into interactive, adaptive companions that encourage interaction. These toys enhance learning and interactive engagement, appealing to both children and adults.

Power partnerships

Licensing and cross-industry collaborations are unlocking new revenue streams. Toy companies are expanding into fashion, food and entertainment to maximise IP value and reach new demographics.

Play-as-a-service

Subscription models are redefining ownership, offering curated, flexible access to toys and games. This supports continuous engagement, recurring revenue and sustainability goals.

Our expert’s view of toys and games in 2025
Key findings
Toys and games offers nostalgia, comfort, escapism and social connection
Top five trends in toys and games
Top five trends uncovered
The rise of kidults
Funko leverages nostalgia and collectibles to drive growth
Build-A-Bear pivoting business to attract adults too
Nostalgia and collectibles drive kidults growth
The future of play is digital
Obboto harnesses online crowdfunding to gauge demand for new products
Mattel’s digital leap into video games with Monster High
Unlocking revenue growth through digital play
AI and tech redefining how toys interact
AI companion robot (Ai Me) from TCL as a family companion
Bringing the magic of AI to Mattel’s iconic brands to target digital natives
Transforming toys through AI-driven interactive experiences
Unlocking new revenues and new consumers through cross-industry partnerships
McDonald’s helps Minecraft hit the goldmine
Adding toy elements on spectacle frames as differentiator
Licensing and collaboration as growth engine
From ownership to access
PlayStation Plus subscription is helping to protect Sony’s profitability
Subscription ensures Miko remains relevant as the child grows up
Opportunities aplenty as play shifts from product to platform
Future implications
Opportunities for growth

Toys and Games

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

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