Toys for Big Kids: The Rise of the Adult Toy Market
Older buyers dominate toy purchases over small children, according to recent findings
It appears that toys aren't just for kiddies anymore. Intriguingly, grown-ups are dominating the sales scene in the toy industry, surprising everyone – including the sellers!
Based on a report by Circana, individuals aged 18 and above contributed more to toy sales in the initial quarter of the year than any other demographic, surpassing preschoolers for the first time. This adult-driven segment contributed an astonishing $1.5 billion to toy sales during this period.
Talking about themselves, almost half (43%) of these grown-up shoppers admitted to buying toys for their personal enjoyment, be it for collecting, socializing, or just plain fun, per the report.
The initialfour months saw a minor dip in toy sales, with a 1% drop compared to the previous year. However, sales are currently substantially higher than in 2019, having climbed a staggering 38%.
The Why Behind the Buy: Adults Driving the Toy Market
Sheltering-at-home during the pandemic ignited a resurgence of nostalgia, fueling a surge in toy sales. This trend continues to thrive, according to the report, marking a promising period of growth for the toy market.
"We are witnessing a transformative moment across various retail segments as consumers wrestle with escalating prices and budget constraints. Despite the industry grappling with heating temperatures, the toy market stands as a beacon of possibilities," Juli Lennett, vice president and toy industry adviser at Circana, shared in a statement.
However, it's not a walk in the park for some heavy-hitters in the toy industry. Take Mattel, for instance, which recently reported net sales of $810 million, down 1%. They also incurred a net loss of $28 million, although the figure is less severe compared to the previous quarter's $106.5 million net loss. Meanwhile, Hasbro's Q1 revenue took a tumble, plunging 24% to $757.3 million. The company suffered a net loss of $22 million initially but managed to eke out a net earnings of $59 million in the latest quarter.
Combat these turbulent times, big-box retailer Target launched a budget-friendly private label toy brand this spring. Dubbed Gigglescape, the line offers products priced at $20 or under, with plush items selling for as little as $10 and books going for just $5.
In case you're wondering, global toy sales exceeded $108.7 billion last year, according to yet another Circana report.
Breaking Down the Toy Market Trends
The toy market is witnessing a radical metamorphosis, with adults stepping into the limelight. This is predominantly happening within the "kidult" segment, where adults are enticed by the appeal of nostalgia, entertainment, and personal fulfillment that transcends traditional child-focused toys.
Other emerging trends in the toy market embraced by these grown-up toy enthusiasts include technological innovation, media integration, and sustainability.
- Booming Kidult Market: Adults continue to fuel the growth of the kidult market, investing in toys they can interact with themselves.
- Innovation through Technology: The integration of AI, augmented reality (AR), virtual reality (VR), and robotics will further shape the toy market, allowing for increasingly engaging and interactive experiences.
- Media Integration: Popular media franchises and their integration into toys are boosting consumer engagement while tapping into both the adult collector market and precious memories of childhood.
- Eco-Friendliness: Consumers' strong preferences for sustainable materials in toys are fostering increased awareness among manufacturers, with more companies adopting eco-friendly practices to cater to these changing values.
- Amid the transformation in the toy market, adult consumers are increasingly driving the growth of the 'kidult' segment, investing in toys for personal interaction.
- The integration of artificial intelligence (AI), augmented reality (AR), virtual reality (VR), and robotics is expected to reshape the toy market, offering increasingly engaging and interactive experiences for consumers.
- The appeal of popular media franchises integrated into toys is boosting consumer engagement, catering to both adult collectors and the nostalgia of childhood memories.
- In response to consumers' growing preference for sustainable materials, manufacturers are becoming more environmentally conscious, adopting eco-friendly practices to meet changing values.
- For those seeking budget-friendly options, Target's new private label toy brand, Gigglescape, offers products priced at $20 or less, with some items selling for as low as $10 and books offered at $5.
- Opportunistic retailers are capitalizing on the thriving adult toy market, offering deals and discounts on home-and-garden, lifestyle, and shopping items to entice adult consumers during the pandemic.
