How the Joy Factor and "Kidults" Are Saving the Toy Industry

The toy industry had a "bounce back year"  according to Circana industry reports, with global sales climbing 7%. This follows three straight years of decline and is being credited largely to the growth of sales of games, puzzles, licensed toys and collectibles. The #1 property globally was Pokémon, followed by Hot Wheels, Marvel Universe, Barbie and Star Wars. A big driver of growth was also "kidults" (people over the age of 12) buying collectibles for nostalgic or collection reasons. This growth was also coming despite the effects of higher prices due to U.S. tariffs.

"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 free time."

The data points to an interesting trend that will be worth watching throughout 2026. As people increasingly feel the negative effects of screen time, countries follow Australia's lead and ban social media for kids under 16 and people prioritize moments of human connection over technology we will see more impact on industry sectors. Travel, entertainment, non-digital gaming are all likely to see more growth in the coming year thanks to this same "Joy factor."