The Toy Industry Is Growing as ‘You’re Never Too Old’ Shoppers Drive Sales

The toy business has shaken off a slump. You can thank the grownups. 

After a period of declining sales exacerbated by tariffs turbulence and softer household spending on discretionary purchases, the toy industry appears to have rebounded from a two-year decline with a pickup in sales in 2025, according to a report from market research firm Circana.

Shoppers not only bought more toys and games last year, but they also spent more, according to Circana, which said U.S. dollar sales came to more than $45 billion. “The U.S. toy industry regained its footing in 2025, fueled by renewed consumer demand and a clear shift toward higher‑value purchases,” wrote Juli Lennett, toys industry advisor at Circana.

Games and puzzles saw double-digit dollar sales growth last year, driven primarily by Pokémon, building sets and trading cards, Circana said. Those three “supercategories,” along with toy purchases associated with pop culture, contributed to 92% of all toy industry growth in 2025.

Previously popular categories like plush and dolls were among the steepest decliners. Despite the viral frenzy ignited by Labubus last year, Circana told Investopedia that plush toy sales peaked in 2024 with Squishmallows. 

Adults are increasingly buying toys for themselves. Circana said the toy market is being propelled by older consumers: People aged 18 and older in 2025 represented about a fifth of all toy sales, or about $9.1 billion, up nearly 20% year-over-year.

Older kids, young adults, Millennials and GenX are reaching for boardgames and toys, including nostalgic properties, according to Ali Mierzejewski, editor-in-chief of The Toy Insider.

“Games and puzzles really took off during the pandemic,” she said. “From there, we’ve seen a cultural shift in the way people view toys—and that you’re never too old to reap the benefits that play gives you.”

Scooter maker Razor plans to soon unveil an adult version of a go-kart-like toy it says has already sold more than 1 million units. Binho has created kidult-friendly tabletop soccer games that substitute fingers for legs. Hasbro is also expected to soon unveil a new line of kidult products.

Quarterly results from industry leaders illustrate some of the challenges and opportunities facing the business.  

Shares of Mattel (MAT), which owns iconic properties including Barbie, Hot Wheels, Fisher-Price and American Girl, plunged this week after the company reported a disappointing year-end quarter, citing order delays tied to tariffs, and warned about its profit outlook.

Hasbro (HAS), owner of Transformers, Nerf and My Little Pony, reported better-than-expected quarterly results on Monday. The company said its customers didn’t balk at higher prices for its products as it logged year-over-year increase in revenue and profit. 

Toymakers are preparing to share their newest products this weekend at the New York Toy Fair, one of the industry’s biggest trade shows. The four-day event showcases products expected to arrive in stores later this year.

Mierzejewski expects consumers will see entertainment and licensed properties dominate new toys in 2026, citing the sustained popularity of KPop Demon Hunters, a Pokemon anniversary, and new Mario and Toy Story movies. 

“All of these are cross-generational opportunities for toymakers,” she said.