Gen Z is fueling a global toy consumption wave, driving significant earnings growth for related companies. According to global consumer insights firm Circana, 2025 has become "the hottest year for adult toy purchases," with 76% of UK Gen Z consumers aged 18-34 buying toys for themselves or other adults.
Brands like China's POP MART and UK-based Jellycat are at the forefront of this trend. POP MART delivered particularly stellar results in the first half of 2025, with net profit surging nearly 400% and revenue jumping 204.4% year-over-year to 13.88 billion yuan.
Industry experts attribute this phenomenon to the "happiness economy." Amid economic and social pressures, adults are seeking emotional comfort and nostalgic experiences through consumption. Plush toys have become the fourth most popular toy category for adults, trailing only games/puzzles, LEGO sets, and figurines.
Analysts note the deeper driver stems from unique pressures facing Gen Z, including soaring housing prices and persistent inflation, prompting them to seek "therapeutic consumption" with companionship and community elements as a way to find small joys and emotional belonging in uncertain times.
**Explosive Growth for POP MART and Jellycat** The plush toy craze has delivered remarkable financial gains. POP MART reported first-half 2025 revenue of 13.88 billion yuan (≈$1.93 billion), with net profit growth approaching 400%. Its Labubu doll alone contributed about $423 million to global revenue in 2024.
Jellycat also posted impressive results, with 2024 revenue growing 66% to £333 million from £200 million in 2023. Pretax profit more than doubled from £67 million to £139 million year-over-year.
Jellycat CEO Arnaud Meysselle commented: "It's wonderful to see such enthusiastic responses to our new characters across all age groups."
**"Peter Pan Effect" Reflects Adult Pressures** Circana's Symonds describes this trend as the "Peter Pan Effect" - adults struggling with growing up and taking responsibility. She explains: "As children, we couldn't wait to grow up, but as adults, we realize childhood was the best time of our lives."
Gen Z faces particularly challenging circumstances. Ongoing economic and geopolitical turmoil, amplified by social media's constant stream of conflict imagery, exacerbates insecurity while rising living costs erode purchasing power. Traditional milestones like homeownership and starting families now seem unattainable for many.
This reality gap has spawned a "doom spending" mentality: Unable to achieve major goals like homeownership, many Gen Zers turn to immediate gratification through travel, designer items, or collectible toys - seeking small comforts and emotional compensation to regain life's control amid uncertainty.
**Community Belonging Drives Collecting** Beyond economic pressures, widespread loneliness profoundly influences Gen Z's consumption choices. For many, toy collecting has become an emotional pathway to community connection. A March survey by dating app Hinge found 85% of UK Gen Z respondents frequently feel lonely.
Selfridges' toy buyer Joe Evans notes Jellycat has become their fastest-growing brand, with "explosive growth" from Gen Z and millennial customers seeking "community through collecting" over the past two years. He adds: "Buying Jellycat makes you feel part of a community, with active online groups where people compete to get the newest products."
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