The U.S. toy market is growing nearly $30 billion annually, defying expectations of decline. Adults buying toys for themselves, called kiddults, now account for over 25% of toy spending. LEGO's $1,600 Star Wars set and Squishmallows show how nostalgia and collector appeal drive the boom.
The toy industry, it should be dead. Why? Because birth rates are down, inflation is up— oh God— and kids only want to play Fortnite on their iPads. But instead, it's grown by nearly $30 billion a year. So what happened? It's all thanks to a brand new buyer demographic in the toy industry, and one that's one of the worst portmanteaus I've ever heard: kiddults. That's kids plus adults. In other words, people 18 and older who are buying toys not for kids but for themselves. And these kiddults now make up over 25% of all toy spending in the United States. An obvious example, let's look at the Lego Corporation. You think a $1,600 Star Wars set is made for kids? Not a chance. Plush toys, collectibles, Squishmallows— they're all exploding in sales, not because kids are buying them, but because adults are collecting them. So toy companies have pivoted, packaging toys that now look like collector's items. And these collaborations that they've also built cater to millennial nostalgia. Star Wars, Harry Potter, Pokémon— all that stuff that millennials grew up on, it's back, and it's making more money than ever. Want to get the full story? Check out the video linked here below.
