When was the last time you were in a toy shop or were browsing for toys online? If you were, then you’re not alone and a surprisingly high number of toy purchases made were not for children.
In business, it’s often tempting to focus solely on your “obvious” target audience. Market trends however can reveal surprising customer groups that drive growth in unexpected ways. The UK toy industry offers a great example, highlighting why businesses should always keep an eye on less conventional customers.
Despite facing a third consecutive year of declining sales—thanks to falling birth rates, squeezed family budgets, and a lack of blockbuster film tie-ins—the toy industry has found a surprising ally: adults buying toys for themselves. Dubbed “kidults,” this growing demographic now accounts for one in five toy purchases, according to Circana, a toy industry research group.
For these adult buyers, toys like Lego and collectibles offer more than simple entertainment. They provide nostalgia-fuelled escapism and positive mental health benefits, helping them temporarily disconnect from the pressures of global turmoil.
Melissa Symonds, Executive Director of UK Toys at Circana, explains, “These purchases spark nostalgia and bring escapism.” The rise in sales of high-end collectibles, like the McLaren F1 Lego set, demonstrates that this trend isn’t about small, impulsive buys—it’s about meaningful emotional connections.
Lessons for Business Students: Don’t Overlook the Non-Obvious
This shift in consumer behavior offers key insights for business students:
- Target Beyond the Expected: The toy industry traditionally targets children, but it’s the kidults—a demographic outside the expected customer base—who are driving new opportunities. Businesses that diversify their audience can find untapped revenue streams. For example, marketing nostalgic products to adults has become a lucrative strategy for many sectors, from gaming to fashion.
- Leverage Emotional Benefits: Products aren’t just about utility; they’re about how they make customers feel. For kidults, toys provide comfort, nostalgia, and a sense of escapism. Businesses that recognize and market the emotional value of their products can foster deeper connections with their customers.
- Adapt to Economic Trends: With stretched family budgets, the average price of toys has dropped, making affordability a key selling point. Smart businesses are adjusting their pricing strategies to align with economic realities while offering a range of products that cater to different income levels.
What This Means for the Toy Industry
The UK toy industry, valued at £3.4 billion in the year to September, is entering its critical Christmas period. Retailers are focusing on Black Friday promotions and driving footfall into physical stores while balancing cost pressures like rising National Insurance. Products like Hot Wheels and Paw Patrol remain staples for children, but toys with broader appeal, such as interactive pets and high-end Lego sets, showcase how the industry is catering to diverse age groups.
Takeaway for Future Leaders
As future business leaders, it’s vital to challenge assumptions about your audience. The toy industry’s pivot to embrace kidults underscores the importance of listening to evolving consumer trends and recognising the broader emotional and psychological drivers of purchases.
Sometimes, the key to growth isn’t targeting your most obvious customers—it’s about understanding the less conventional ones who bring new dimensions to your business. Whether you’re selling toys, tech, or services, this mindset can make all the difference.
?){kind=link}