Rise of ‘kidults’ means toys are no longer just child’s play

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Roula Khalaf, Editor of the FT, selects her favourite stories in this weekly newsletter.

Even as Black Friday dawns, toymakers are not having too much fun these days. 

US toy sales fell 8 per cent last year and were flat during the first nine months of 2024, according to research group Circana. The industry is struggling to shake off a post-pandemic hangover. Parents who loaded up on toys and board games during the Covid-19 pandemic are reining in their discretionary spending. Adding to the challenge, children are increasingly glued to their smartphones and tablets.

Despite the commercial success and acclaim of the Barbie film released last summer, shares in Mattel have barely budged over the past 12 months. The company last month lowered its full-year guidance as Barbie sales continued to slide during the third quarter. A day later it was followed by Hasbro, home to Play-Doh, Monopoly and Transformers action figures.

There has been one bright spot: adults who are buying toys for themselves. Dubbed “kidults”, these grown-up toy aficionados are big spenders. Those aged 18 and older accounted for 18 per cent of total US toy sales in the year to September, or about $7.3bn. It is a rare area of growth.

Lego is one company to embrace kidults. In 2020, it launched an age 18+ adult-focused Icon line which boasts big (and more expensive) kits such as the $850 Millennium Falcon from Star Wars. The lines also lean heavily on nostalgia, with a Lego version of the 1980s-era Nintendo NES gaming console, for example. The focus has helped the Danish toymaker buck the wider slowdown in the toys sector, with revenues up 13 per cent to DKr31bn ($4.4bn) in the first six months of 2024.

Squishmallow maker Jazwares, which is owned by Warren Buffett’s Berkshire Hathaway, is another beneficiary of the trend. Variations of the soft, squeezable plush made up five of the top 10 selling toys in the first half. While the toy — which ranges in size from two to 24 inches and costs between $5.99 and $59.99 — is popular with all age groups, the company said fans 18 and up were boosting sales.

Catering to middle-aged toy buyers is not a guaranteed road to riches. Hasbro, whose Dungeons & Dragons board game has loyal adult fans, said 40 per cent of its annual revenue comes from people aged 18 and older. That has not been enough to reverse the broader decline in its toy sales. Mattel, which has created a direct to consumer collectibles platform, continues to struggle with weak Barbie sales.

Kidults may be big business. But toymakers still need to get the real kids playing with toys again.

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