A profound shift is under way in the toy and game sector as manufacturers pivot their focus from children to adults. Against a backdrop of global toy‑market growth and recessionary pressures, the adult “kidult” demographic is emerging as a vital driver—and one that is reshaping strategies across product lines, licensing and marketing.

Adult Buyers Drive the Market

According to data from Circana, global toy‑sales dollars rose by 7 % in the first half of 2025 to US$27.5 billion, while units rose 4 % and average selling price climbed 3 %. Notably, the gains have been disproportionately led by older consumers. In the U.S., adults aged 18+ increased their purchases by 18 % in H1 2025—versus 9 % for 9‑to‑11‑year‑olds and 6 % for teens. Toy companies such as LEGO and Mattel have responded with complex building sets and limited‑edition collectibles aimed specifically at adults who grew up with those brands. This trend is reinforcing adult spending patterns—once a secondary demographic—into a primary strategic focus.

Licensing, Nostalgia and Premiumisation

Key to this shift is licensing and nostalgia. Licensed toys now account for roughly 35 % of global toy sales, with growth rates of about 17 % in H1 2025. Brands are tapping into 1980s‑1990s franchises, pop‑culture icons and even the “blind‑box” collectible format that creates scarcity and drives adult‑collector behaviour. For manufacturers, the adult market offers higher margins: adults are willing to pay more for premium, design‑forward items than the younger demographic, which often focuses on price. At the same time, this premiumisation also increases exposure to macro pressures—higher input costs, tariffs (especially with many toys manufactured in China) and a downturn in discretionary spending could undercut the momentum.

Strategic Implications for the Industry and Investors

Strategically, the rise of kidults is altering the product‑portfolio calculus for toy makers and their investors. Firms are reallocating R&D, marketing to adult lifestyles, and building direct‑to‑consumer channels to capture the collector mindset. For global investors—including those in Israel—the trend signals an opportunity in companies that successfully pivot, but also a need for caution. The toy sector’s exposure to global supply‑chains, trade friction, and shifting consumer sentiment means that adult‑oriented lines may be more volatile than standard children’s toys. Furthermore, the Israeli market, with its strong export sectors and consumer‑tech orientation, may see ripple effects from brands globally shifting to adult‑focused, higher‑end collectibles and lifestyle toys.

Looking ahead, industry watchers will monitor how the “kidult” wave evolves: whether adult spending remains robust amid inflation, how licensing deals and IP strategy perform, and how toy‑makers manage supply‑chain and tariff risks. Key indicators will include the half‑yearly results of major players, shifts in premium‑segment pricing, and the rate of new adult‑targeted product launches.