Published 13 March 2025

8 min read

Returning after a hiatus in 2024, new products at Toy Fair New York (March 1-4) highlight key pockets of opportunity for the industry, including the booming licensing arena and the kidult category. Brands are also prioritising products that lower stress and regulate emotions, and (countering screen time) nurture hands-on craft and creativity in fresh ways.

Three Key Growth Areas

Nurturing Hands-On Creativity

Enhancing Emotional Health

With growth in the global toy market stunted by factors including declining birth rates and consumer budget-cutting – year-on-year sales fell by 0.6% in 2024 (Circana, 2025) – brands are seizing on three safe bets: licensing of popular media brands (both contemporary and nostalgic), the lucrative ‘kidult’ market, and growing interest in seasonally themed products.

With growth in the global toy market stunted by factors including declining birth rates and consumer budget-cutting – year-on-year sales fell by 0.6% in 2024 (Circana, 2025) – brands are seizing on three safe bets: licensing of popular media brands (both contemporary and nostalgic), the lucrative ‘kidult’ market, and growing interest in seasonally themed products.

Summary

Three Key Growth Areas

With growth in the global toy market stunted by factors including declining birth rates and consumer budget-cutting – year-on-year sales fell by 0.6% in 2024 (Circana, 2025) – brands are seizing on three safe bets: licensing of popular media brands (both contemporary and nostalgic), the lucrative ‘kidult’ market, and growing interest in seasonally themed products.

Nurturing Hands-On Creativity

As a counter to kids’ screen time, many products encourage children to craft and build with their hands, and exercise analogue creativity. New Barbies provide novel ways to personalise the dolls’ fashion choices, while craft kits enable easy achievement, aligning with The Happy Hobby Boom and a cross-generational embrace of traditional pastimes like crocheting.

Enhancing Emotional Health

Products that promote emotional regulation, coping skills and anxiety reduction are growing into a key category. Fuelling this is a growing focus on mental, emotional and social health (MESH) – about two dozen brands showed MESH-accredited products – and better understanding of how stimulation toys help neurodivergent people. See also London Toy Fair 2024.  

Toy Fair New York 2025

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