Inside the rise of Gen Z’s plush-toy craze as they delay adulthood

Christmas is right around the corner and if you’re unsure of what to gift your Gen Z family members, a cute plush toy might be the answer this year.

The year 2025 has proven that toys are not just for kids, with more and more young adults showing off their extensive collections of plush toys. Experts say it signals a longing for community and a return to childhood.

The popularity stems from the wild craze for Labubu dolls, produced by Chinese toy company Pop Mart, and soft toys, also known as “Jellies”, designed by British brand Jellycat.

In videos posted by Gen Zers on TikTok, brightly colored stuffed animals and wide-eyed dolls can be seen lining walls or falling from overstuffed shelves.

The platform, which has become a barometer for Gen Z trends, is now home to millions of videos showing young adults obsessed with plush toys.

Videos, a “Labubu wall” hacks to find authentic Labubusor a shelf with five dedicated shelves Jellies shown.

“This is the biggest year we’ve ever seen for adults buying toys,” Melissa Symonds, UK toy director for global consumer analytics firm Circana, told CNBC Make It in an interview.

“Adults of all ages are buying toys, but it is primarily young people, Generation Z, who are driving the strong growth we have experienced over the last few years,” Symonds said.

In fact, a recent Circana report It found that 43% of UK adults have bought a toy for themselves or another adult this year, rising to 76% for Gen Z shoppers aged 18 to 34.

Among toy types, plush toys are the fourth most popular category for adults, according to data Circanca shared with CNBC; games and puzzles take the top spot, followed by building sets like LEGO, and action figures come in third.

It’s a similar story across the pond; Licensed toy sales are increasing day by day 18% for US adults over 18 in the first half of the year, according to Circana.

Symonds explained that businesses benefit from the so-called “joy economy”, where consumers seek comfort and nostalgia in products and experiences, especially when faced with economic or political pressures.

“The economy, the wars, everything is really depressing and serious, but toys bring a little bit of joy to life,” Symonds said.

Pop Mart and Jellycat have capitalized on this trend. Pop Mart reported an almost 400% increase in net profit in the first half of the year, with revenue reaching 13.88 billion yuan ($1.93 billion), up 204.4% year on year.

About $423 million of the company’s global revenue in 2024 will come from Labubu dolls alone, Pop Mart previously told CNBC Make It.

Meanwhile, Jellycat’s revenue rose 66% from £200 million in 2023 to £333 million in 2024. Its pre-tax profits more than doubled to £139 million from £67 million the previous year.

“It’s been great to see the response to our new characters across multiple generations,” Jellycat CEO Arnaud Meysselle told CNBC. he said.

“It was amazing to meet so many adults discovering Jellycat for the first time at our recent experience launches in Beijing, Seoul, and Los Angeles, and to welcome so many others to our online communities,” said Meysselle.

Fans of Jellycat, Labubu and plushies in general corporate workers with military personnel talking about the benefits toys provide them sanity on TikTok as they grapple with their increasingly stressful adult lives.

Circana’s Symonds said this was a symptom of the “Peter Pan effect”, which refers to a psychological syndrome in which adults struggle to grow up and take responsibility.

“It’s almost ironic that when you’re a kid you can’t wait to grow up, but when you become an adult you realize that being a kid was the best time of your life,” he said.

“There’s a bit of a Peter Pan influence here [Gen Z consumers] “I don’t want to grow up, but I think just holding on to that element of joy is what brings them happiness.”

Gen Z adults have had a rough go of it as a generation, as many say the adulthood they were promised has come to an end. Economic and geopolitical turmoil disrupts their lives, images of war are published on social media every day, and the cost of living continues to increase rapidly.

Some of the conflicts they have seen throughout their adult lives include Russia’s invasion of Ukraine in 2022 and the Israel-Hamas war.

Above all, rising inflation means their purchasing power is diminishing every day, with economic milestones like buying a home or starting a family feeling out of reach.

Many of Gen Z are “doomsday spending” to fill the void. This refers to a phenomenon where people spend money on small luxuries like travel, designer goods, and even expensive toys because they know they can never afford bigger milestones like owning a house or even having children.

Postponing parenthood also means Gen Zers have more disposable income to spend on little luxuries.

“I think some of them might be because they [Gen Z] They choose to have slightly older children so they have a longer period of time where the money will come in, but they don’t necessarily have to spend it on schools or lunch boxes, so they choose to spend it on themselves to bring some happiness to them,” Symonds said.

In addition to economic difficulties, Generation Z also struggles with loneliness, and for some, buying and collecting toys can help them feel like part of a community.

Around 85% of British Gen Zers reported experiencing this condition Feelings of loneliness, according to a March Hinge survey of 2,000 Gen Z adults in the UK. More than half of low-income young adults have experienced severe loneliness, according to the study.