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Driven by pop culture relevance, licensed products, and increased engagement from teens and adults, the toy category delivered a bounce-back year in 2025, with global sales climbing 7%, according to Circana.
The gain was supported by a 3% increase in units sold, and a 3% lift in average selling prices.
The performance followed three consecutive years of declines, with toys seeing growth across the G12 -- Australia, Belgium, Brazil, Canada, France, Germany, Italy, Mexico, Netherlands, Spain, the UK, and the U.S. -- for the first time in Circana’s tracking history.
The category’s resurgence is linked to what Circana describes as the “Joy Factor,” or the convergence of “entertainment, collectability, and emotional engagement.” Among the toy category's underlying drivers are affordability, nostalgia, pop culture connections and advanced interactivity -- as well as their ability to entertain, drive social connections, and provide a break from screen time.
Frédérique Tutt, global toys industry advisor at Circana, said, “This positive performance marks a pivotal turning point for the industry, signaling that toys have reasserted their role as affordable entertainment and cultural touchpoints for consumers of all ages.”
Among the highlights for the year:
- Six of the 11 toy super categories experienced year-over-year dollar sales gains within the G12. Games and puzzles grew the fastest, up 30%, while building sets grew for the sixth consecutive year, up 18%.
- Licensed toy sales grew 15% and accounted for 37% of global toy sales, the highest level to date. Stronger global box office, video games, and increased streaming content drove the gains. The No. 1 toy property globally was again Pokémon, followed by Hot Wheels, Marvel Universe, Barbie, and Star Wars.
- Collectibles jumped 32% and now account for almost 19% of all dollar sales globally, supported by interest from children and adults.
One newer factor supporting growth is interest from “kidadults" or "kidults," those consumers aged 12 and older purchasing toys, often for nostalgic reasons. Circana said the emerging older demographic “underscores toys’ expanding role beyond traditional play -- as lifestyle, fandom, and self-expression products.”
Circana said that given the momentum across toy categories, 2026 is expected to mark the return to “long-term, sustainable growth” globally for the category. Tutt said, “The market will build on the strength of licenses, collaborations, year-round purchasing, and continued innovation and digitalization to deliver richer consumer experiences.”
Toy Growth Continues Despite US Tariffs
The gains in the U.S. were particularly encouraging as they came despite a hike in toy prices to offset U.S. tariffs.
Circana previously reported, by dollar sales, toys in the U.S. climbed 6% in the first half, led by strength in games and puzzles (+39%), and explorative toys (+19%), led by Pokémon and NFL trading cards. Licensed toy sales jumped 18% in the half, led by Pokémon, Final Fantasy, and Minecraft among video game properties; and the “Formula 1,” “Lilo & Stitch,” and “Sonic the Hedgehog” movie releases.
In reporting third-quarter results, both Mattel and Hasbro were upbeat about holiday selling, with officials indicating retailers were accelerating holiday orders significantly coming into the fourth quarter after waiting to assess tariff impacts.
“This quarter, our U.S. business was again challenged by industry-wide shifts in retailer ordering patterns,” Mattel’s CEO Ynon Kreiz told analysts. “That said, consumer demand for our products grew in every region, including in the U.S.”
Kreiz added that, “Since the beginning of the fourth quarter, orders from retailers in the U.S. have accelerated significantly.”
Mattel’s sales fell 7% in the third quarter as declines at Barbie and Fisher-Price offset strength at Hot Wheels and action figures, primarily drawn from the “Jurassic World,” Minecraft, and WWE franchises.
Hasbro’s revenue raised its financial guidance for the year after reporting third-quarter sales jumped 8% and indicating pricing actions were offsetting tariff costs. Strong sellers included “Peppa Pig” and Marvel franchise toys, as well as the Wizards of the Coast games. Chris Cocks, Hasbro’s CEO, similarly said orders picked up in the fourth quarter. He told analysts, “Everything kind of augurs towards continued robust kind of replenishment from our retailers.”