How Much Will the Toy Retail Segment Rely on 'Kidult' Consumers in the Future?

When one thinks of the toy aisle at any major retailer, most might imagine shelves stocked with items appealing to younger consumers, particularly children and pre-teens.

The reality of the situation appears to be, however, that the toys and collectibles segment has been pivoting to serve the desires of so-called "kidult" shoppers, oftentimes (but not exclusively) defined as those over the age of 18. Others peg that age at 12 and over.

According to a 2024 New York Post report citing Circana data, in the first half of that year, toy collectors aged 18 and older drove more demand than preschoolers did for the first time ever. "Kidults" racked up $1.5 billion in toy sales spanning January through April of 2024.

“The reality is that most kids today are not connecting with physical toys the way previous generations did,” toy influencer Dan Larson told the outlet.

And as VMSD noted, pulling more recent Circana data from this year, the broader demographic definition of the "kidult" cohort was responsible for driving a turnaround in the toys and collectibles retail segment — sales across G12 countries rose by 7% from January through June of 2025, to $27.5 billion, versus the year prior. Toy sales had weakened in 2023 (versus 2022's figures) by 8%, and in 2024, sales were down 1% as of April of that year.

“I have been following the toy market for many years and cannot recall the last time all countries Circana tracks were growing at the same time,” said Circana’s global toys industry advisor Frédérique Tutt. “The surge in sales can largely be attributed to consumers aged over 12-years-old, who have shown unprecedented growth and are consistently outperforming traditional kids’ trends.”

Why Are 'Kidult' Shoppers Buying? And Will They Continue To Do So?

A variety of reasons have been posited as to the motivations behind the rise of the "kidult" toy consumer, from feelings of nostalgia or belonging to tactile distraction to preferred home decor.

On the nostalgia front, Juli Lennett — VP and toys industry advisor for Circana — suggested that adults were reconnecting with childhood via the purchase of toys, particularly given the difficulties of the post-pandemic economy.

“Ever since the pandemic, the adult market for toys has been the growth area for the toy industry,” Lennett said, per MarketingBrew. “When there are times of stress, which it feels like we’re getting into that even now, consumers do tend to lean into when they were children and lean into toys.”

Belonging to a larger community of collectors and aficionados can also be a powerful spending motivator for this cohort, as Lennett continued.

"[Engaging with toy culture] kind of makes you feel good, and you’re part of a bigger group. It’s social media–driven. You feel okay doing it, and you’re going to promote it," she said.

Regarding Pop Mart's Labubu in particular, this year's hottest toy, despite the cutesy-evil appearance of the character lineup, the product itself is targeting Gen Z "kidults," rather than younger children.

“The target audience for our product is the adult collector,” Emily Brough, Pop Mart’s head of licensing, told The Wall Street Journal. “We are specifically hitting that Gen Z kidult customer, so they’re more collectible items than anything else, and so they’re definitely not marketed for children.”

As Financial Times columnist Anjli Raval suggested, the appeal could come as part of the "displayability" of the products in terms of acting as conversation pieces or home decor staples, or in the thrill of the chase in landing a highly prized rarity (perhaps even to sell at a profit to other collectors). And when it comes to tactile engagement — say, via the building of a larger LEGO set — toys can offer a physical way to channel focus, reducing an overload of screen time.

Tariffs Still a Cause for Concern for US Toy Retailers

It's not all sunny news for the toy business, though. Tutt made the case for caution regarding the toy segment's upcoming holiday season as tariffs continue to play out.

“The toy market is in healthy shape, with solid demand for toys and games; however, as an industry we must remain vigilant of the uncertainties surrounding U.S. tariffs and their impact on pricing and supply chains,” said Tutt.

“As the second half of the year accounts for over 60% of annual toy sales, the industry has reason to be optimistic about continued growth, but must also remain cautious and strategic as the holiday season draws near,” Tutt concluded.