One of my favorite Toy Fair memories was stepping into the Tyco Toys showroom and seeing Tickle Me Elmo for the first time and just knowing we had a hit on our hands! I’ve always loved toys, but that moment solidified my love for an industry that constantly reinvents itself, bringing joy and wonder to people of all ages. As we begin a new year, I can’t help but feel the same excitement I did back then.
While there are challenges, namely shifting demographics, economic pressures, and changing consumer behaviors, the industry has continually proven its ability to adapt and innovate. Current trends driving success in the toy industry—from new audiences to sustainability, technology, and more—offer an optimistic view of the future and showcase how companies are embracing change and unlocking new opportunities.
- Embracing the ‘Kidult’ Market
One of the most notable trends is the rise of the ‘kidult’ market—adults who purchase toys for themselves. This group now accounts for nearly 20% of toy sales in the U.S. (according to Circana), driven by nostalgia, stress relief, and the appeal of collectibles. Companies are tapping into this demographic with products like LEGO Botanicals, Funko Pop! collectibles, and reimagined classic toys.The kidult market offers higher price point opportunities, as adults are often willing to spend more on premium or limited-edition items. When I see a carefully curated shelf of collectibles or a group of adults engrossed in a board game (that’s how I spent my New Year’s Eve!), it reminds me how toys can bring out the child in all of us. Expect to continue seeing an array of products targeting this growing demographic.
- Investing in Sustainability
Eco-conscious consumers are increasingly looking for toys made from sustainable materials, and companies like VTech are stepping up with innovative initiatives. For example, VTech expanded its range of eco-friendly electronic learning products, including the LeapFrog Nest & Count Turtle Tower and 4-in-1 Learning Hamburger, both made from reclaimed plastics. Furthermore, over 96% of the packaging materials for its electronic learning products were recyclable this past year, demonstrating the company’s commitment to a more sustainable future.This shift not only addresses consumer demand, but also aligns with broader corporate responsibility goals. It’s inspiring to witness these efforts to ensure that joy and play don’t come at the expense of the planet. As someone who has watched this industry evolve, I’m proud to see sustainability becoming a core focus.
- Reframing Marketing for Smaller Families
With fewer children per household, toy companies are focusing on quality over quantity. Marketing strategies emphasize the developmental and educational value of toys, appealing to parents who are investing more in each child’s growth. Social-emotional learning toys and STEM-focused products have seen rising demand as a result.I think back to the joy I felt seeing my own children light up with pride as they learned a new skill or solved a puzzle for the first time. Today’s families are looking for those moments, and the industry is responding with thoughtful, high-value products.
- Leveraging Technology and AI
Technology integration remains a cornerstone of the toy industry’s evolution. According to the Toy Association, AI integration is rapidly shaping product development and consumer engagement strategies. From augmented reality games to app-connected playsets, tech-infused toys are capturing the imaginations of both children and adults.Reports from Mintel also highlight a growing interest in AI-enabled toys, though they emphasize the importance of introducing such technologies thoughtfully to earn consumer trust. While some parents might approach AI in toys with caution, these innovations are designed to complement traditional playtime staples, fostering creativity and new ways of thinking rather than replacing classic modes of play. I can’t wait to see what AI-enabled toys will make their debut at Toy Fair ’25. Imagine the possibilities—playtime is about to get even smarter and more interactive!
- Diversifying Sales Channels
The growth of e-commerce has been a lifeline for the toy industry. Companies are optimizing their online presence with better user experiences, personalized recommendations, and exclusive online product launches. Retail partnerships with platforms like Amazon and Walmart also play a critical role in reaching consumers.
Walking into a store to see a toy in person will always be magical, but there’s something to be said about the convenience and innovation that e-commerce brings. The industry’s ability to bridge these worlds is nothing short of impressive.
The trends we’re seeing today reflect not just where we’re headed but also the timeless magic of play that continues to captivate us all. It will be thrilling to see how these trends play out in the year ahead, and I’m eager to once again experience that unique spark of discovery at Toy Fair ’25. Just as Tickle Me Elmo sparked joy and wonder all those years ago, followed by hot toys like Furby, Bratz Dolls, Hatchimals, Fingerlings and Baby Yoda (the list goes on and on), I’m reminded of the incredible ability toys have to inspire and bring people together. Here’s to the next chapter of innovation, joy, and play!
