43% of Adults Purchased a Toy this Year… for Themselves. Brands Like Disney, Pokémon & LEGO Change Course.
Who are the ‘kidults’ outpacing all other segments in toy purchasing? Since at least 2022, adults purchasing toys for themselves have been the highest-growth segment for toy brands. And in Q1 2024, they surpassed preschoolers as the highest-revenue group, globally spending $1.5 billion. Annually, kidults purchase about $9 billion in toys. Five market segmentation examples will help us better understand these consumers.
Research giant Circana released its report on the global toy industry for the first half of 2024, and it sees kidults as an important factor in overcoming inflation to stabilize sales. Frédérique Tutt, global toys industry advisor at Circana says:
“After a difficult year in 2023, when inflation began taking a heavy toll on consumer spending, Circana is pleased to report that toy sales have stabilized in the first half of 2024, in terms of both value and units sold, as average prices hold steady with last year. We continue to observe strong momentum with older consumers, especially adult fans and collectors who have re-discovered play and are very engaged with the category. As we move through the second half of the year and prepare for the holiday season, we expect to see more new products being launched that will deliver excitement for children and adults alike. The industry will continue to gain traction in product categories including building sets, plush, robotic interactive pets, and collectibles.”
Let’s take a closer look at market segmentation examples in five different brands:
- Squishmallow
- Pokémon
- Disney
- LEGO
- Fisher Price
Market Segmentation Examples:
Squishmallow
As a mom, I was skeptical about ‘kidults’ as a segment, until I read the figures on Squishmallows. That’s where I saw myself in this market segmentation example. I love my 24” chocolate-frosted donut plush (named Deja). She’s the perfect back support while I’m watching TV—thanks, kids for introducing me to this oh-so-soft brand! And when my sister had surgery, I sent her a cheerful 12” whale in a top hat named Samir to improve the coziness of her recovery.
In 2024 US toy dollar sales, Squishmallow parent company Jazwares is the big winner, claiming five of the top 10 spots. Here’s the chart from Circana.
The Washington Post reports, “Adults are driving sales of the hottest toy on the market: Squishmallows.” Kidults interviewed for the piece are collectors, with collections of hundreds of Squishmallows, retailing thousands of dollars. Fans get a high from finding rare specimens: each design has its own name and backstory, detailed on the product tag. Plus, they are undeniably cute and irresistibly squishy. Unlike “mint-in-box” collectors, these enthusiasts seem particularly enthusiastic about playing with their Squishmallows.
To get a good feel for this market segmentation example, check out superfan Carter Kench’s video, “The Ultimate Squishmallow Hunt.” It has 3.5 million views on YouTube. You’ve probably never seen anyone so excited to enter a Walgreens.
Market Segmentation Examples:
Pokémon
In Circana’s top-10-toys list, “Pokémon Scarlet and Violet Paldean Fates Pokémon Center Elite Trainer Box” is in eighth place. As the name suggests, this is a Strategic Trading Card Game, retailing for $37.49 at Target. The 28-year-old Pokémon brand also claims first place overall in several countries, including:
- Belgium
- Canada
- France
- Italy
- USA
I took a deep-dive into the online world of Pokémon fans, including corners of the internet such as Reddit and Gamespot forums. There, representatives of this market segmentation example take great umbrage at the suggestion that Pokémon is a “kid’s game.” Convincing arguments are made that:
“Most buyers and players of these games SCARLET and VIOLET will be in their mid 20s.”
Further description of Pokémon’s core segment includes:
- Players in their 20s and 30s
- Platform followers who are predominantly male
- Most popular countries include the US, UK, Brazil, Mexico and Canada
- Followers have careers in computing, design or retail
- Followers are broadly interested in gaming, comics, music, art and tech
Market Segmentation Examples:
Disney
Iconic, 100-year-old brand Disney is worth over $165 billion. “Consumer Products” (like toys) are a mere $5.3 billion annual revenue stream. For this market segmentation example, let’s take a broader look at Disney’s overall fan base. Indications are that the core consumer segment might be aging, starting with August 2024’s D23 Fan Conference:
“Disney superfans travelled from 36 countries and all 50 US states to take part in the company’s biennial fan conference in Anaheim, California, last weekend. The sold-out event attracted a diverse crowd of tens of thousands, withMoanas, Tianas, and Maleficents mixing with Wolverines and Darth Vaders. But one group was not well represented: young people between the ages of 12 and 27, also known as generation Z.”
Price was cited as one reason for aging attendees: tickets started at $100/day, and premium packages reached $2,599 apiece.
Could price also be the reason 40-50% of Disney World parkgoers are adults without children? Business Insider reports this surprising statistic shared by a former park executive. One trip planner estimates that a basic, five-day trip to Disney World for a family of four will cost $6,865. For more luxury options, the trip could easily total $10,696. You can see why this vacation wouldn’t be practical for many families, at least on an annual basis.
There’s at least one customer segment willing to pay these prices. They identify themselves as “Disney Adults” (descriptive, if not terribly creative). Across the internet, it appears these super fans experience significant disdain that helps band them together, or, as Rolling Stone put it, “How ‘Disney Adults’ Became the Most Hated Group on the Internet.” That seems a bit harsh. Let’s learn a bit more about this group:
- Most started as “Disney Babies,” who grew up loving the characters, movies, toys and experiences of Disney
- Often, they are Millennials (aged 28-43)
- They’re very loyal. In one survey, 91% replied “Yes” to the question “Do you think you will be a Disney adult until you die?”
- They’re dedicated spenders. Stories abound: a collection of 400 Mickey Mouse ears, 300 visits to Disney parks, or 400 Disney-themed mugs. The same survey also found that 58% annually spend between $1,000 – $10,000 with the brand.
- Some host Disney-themed podcasts, like Sarah Rachul’s The Pixie Dust Project
- Words they use to describe their feelings for Disney: escapism, magical space, safe, happiness, joy, creative, community
No matter what online critics may think, Disney understands the value of high-spending super fans. Disney Parks has a well-designed portal full of “Magical Moments for Adults,” offering up all the very special attractions Disney Adults could wish for.
Market Segmentation Examples:
LEGO
LEGO was an early-adopter when it came to targeting kidults, so it understands these market segmentation examples more than any other brand. Now, LEGO offers many building sets designed with 18+ consumers in mind. LEGO Icons are one such line, described as:
“Designed for a challenging yet rewarding building experience, LEGO® Icons sets showcase impressive landmarks, modular buildings, classic vehicles, pop culture favorites and beautiful home décor sets. Find your passion and immerse yourself in builds that are worthy to be displayed.”
Two LEGO Icons products earn spots in the top 10 list released by Circana:
- Icons Bouquet of Roses, MSRP $59.99
- Icons Tiny Plants, MSRP $49.00
Other, non-botanical, LEGO Icons include the Lamborghini Countach 5000 Quattrovalvole, PAC-MAN Arcade, Retro Radio and Eiffel Tower. The brand has carefully appealed to many interest groups at many price points (prices range from $29.99 to $679.99).
Market Segmentation Examples:
Fisher Price
All of these market segmentation examples of kidults may have made intuitive sense up to now. LEGO sets are engaging to build. Disney Parks offer fun experiences. I even explained away my Squishmallow as a couch cushion. But would you expect Fisher Price to benefit from the kidult trend? Enter Little People Collector Special Edition Sets.
These 80 different sets are specifically branded as “for adults.” They range from cute and innocuous:
To… very niche and… hey, those Little People are NOT kid-friendly!
On Amazon, prices range from $14.00 to $31.44. These designs seem to be in competition with Funko Pops, although I don’t know how successful they will be long-term. Infamously, $30 million of Funko Pops ended up in landfills last year. The truth is, adults may like to collect toys, build things and take trips, but it’s only kids who are truly skilled at playing.
Were you surprised to learn that kidults are bigger consumers for toys than even preschoolers? Insight to Action writes in-depth analysis about many fascinating market trends on our Market Strategist Blog. See more Market Segmentation Resources or sign up to meet our experts during one of our Office Hours Events.