The toy industry is done trying to win over iPad kids… they’re more interested in their parents.
What happened: Canada’s toy market grew by as much as 7% in the first half of the year, fuelled not by kids, but by so-called ‘kidults’: consumers over 12 years old who still love buying Lego sets, Pokémon cards, and Labubu dolls. Globally, adults now account for 28% of all toy sales.
Why it’s happening: The 2020 lockdowns gave adults an excuse to rediscover old comforts, and that nostalgia-fuelled demand never really faded. People are also having fewer children, meaning there’s a smaller market for kids toys.
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Kidults not only buy more toys now, but they’re willing to pay premium prices for collectibles and trading cards that double as an investment.
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Trading cards alone have become a billion-dollar business for retailers, with Pokémon sales growing 10x year-over-year at Walmart.
Why it matters: Since the pandemic, adults have generated all of the growth in the toy industry. With deeper wallets that seem to open up for all things nostalgia, the toy industry has started to change its playbook to specifically cater to adults.
Zoom out: Childhood nostalgia has been such a powerful retail force that non-toy brands are piggybacking on the craze. Gucci has collabed with Hot Wheels on collectables that sold out in less than a minute, Uniqlo is now rolling out Labubu T-shirts and sweatshirts, and lux fashion brand GCDS just dropped a 1990’s Polly Pocket apparel and accessory line.—LA