Toy Licensing: Kidults Are Now the Engine of Licensing Growth
Kidults—adult consumers buying toys for themselves—have shifted from a quirky sub‑segment to a core commercial driver. Their influence is visible across categories: construction sets, collectibles, tabletop games, nostalgia reissues, premium figures, and display‑oriented products.
Industry forecasts highlight kidults as a defining force in 2025, with their spending helping to “hold the toy market” even as traditional children’s categories fluctuate . This demographic values authenticity, craftsmanship, and deep‑cut IP references, which pushes licensors to expand beyond evergreen children’s brands into cult franchises, retro properties, and cross‑media universes.
Three dynamics make kidults commercially irresistible:
- Higher discretionary spend than families with young children
- Longer brand loyalty cycles, often tied to childhood nostalgia
- Content‑driven discovery, especially through streaming and social media
For licensors, this means more opportunities to revive dormant IP, expand collector‑grade SKUs, and build multi‑tiered product lines that serve both kids and adults without diluting brand identity.
Streaming and Social Media Are Rewriting the Licensing Playbook
Theatrical releases still matter—2025’s slate includes major blockbusters like Captain America: Brave New World and The Fantastic Four: First Steps—but they’re now only one part of a much broader content ecosystem . Streaming platforms, short‑form video, and algorithm‑driven discovery are increasingly responsible for turning niche characters into global licensing opportunities.
This shift has three major implications:
1. Evergreen IP Is Being Re‑evaluated
Brands with consistent streaming visibility enjoy constant rediscovery. A child encountering Peppa Pig or Paw Patrol on demand is just as valuable as a theatrical moment—sometimes more so, because the engagement is repeatable and personalised.
2. Viral Moments Create Micro‑Licensing Windows
A single meme, TikTok trend, or influencer spotlight can spike demand for a character or aesthetic. Licensors are responding with faster approvals, modular style guides, and shorter production cycles.
3. Content‑First Brands Are Outperforming Traditional Toy‑First Launches
The days of launching a toy line and hoping content follows are fading. Instead, brands are built as transmedia ecosystems from day one, with licensing baked into the strategy.
Nostalgia and Retro Revivals Continue to Surge
Nostalgia isn’t just a trend—it’s a structural pillar of modern licensing. Adults who grew up in the 80s, 90s, and early 2000s now have spending power, and they’re eager to reconnect with the brands that shaped their childhoods.
This is visible in:
- Reissues of classic action figures
- Retro gaming hardware
- Vintage‑inspired plush and collectibles
- Reimagined board games and tabletop experiences
The industry’s “Joy Factor”—identified as a key driver of the 2025 sales surge—reflects this emotional pull toward comfort, familiarity, and playful escapism .
For licensors, nostalgia offers a low‑risk, high‑reward strategy: the IP is proven, the audience is primed, and the storytelling foundations already exist.
Sustainability Is Becoming a Licensing Differentiator
Sustainability has moved from a corporate talking point to a commercial requirement. Consumers—especially parents—expect licensed products to reflect environmental responsibility, and licensors increasingly use sustainability credentials as part of brand positioning.
Key shifts include:
- Recycled or bio‑based plastics in figures and playsets
- FSC‑certified packaging
- Reduced single‑use components
- Licensing agreements that mandate sustainability reporting
Major toy companies are integrating sustainability into their innovation pipelines, aligning with broader industry trends around eco‑friendly materials and responsible manufacturing highlighted in 2025 forecasts .
For licensors, this creates competitive advantage: brands that demonstrate environmental leadership gain retailer preference and consumer trust.
STEAM, Skill‑Building, and Purpose‑Driven Play Are Reshaping Licensed Categories
Parents increasingly favour toys that build skills, confidence, and creativity. In the U.S., 58% of parents prefer toys that help kids build a skillset, and 60% seek products that develop STEAM abilities like coding and art .
This shift is influencing licensing in several ways:
- Educational brands are expanding into mainstream toy aisles
- Entertainment IP is integrating STEAM‑aligned narratives
- Hybrid products (physical + digital learning) are gaining traction
- Licensing deals now emphasise developmental benefits alongside entertainment value
The result is a more sophisticated licensing landscape where purpose and play coexist, and where licensors must articulate not just what a brand is, but what it helps children become.
Technology‑Driven Play Is Expanding Licensing Possibilities
Technology is no longer a separate category—it’s embedded across the toy industry. Insights from the Nuremberg Toy Fair 2025 highlight “technology‑driven new play technologies” as one of the major growth areas for manufacturers and licensors alike .
This includes:
- Augmented reality layers on physical toys
- App‑connected play experiences
- Smart collectibles with NFC or QR integration
- AI‑enhanced interactive characters
- Digital twins for virtual play
Licensing opportunities are emerging around hybrid ecosystems where physical products unlock digital content, and digital engagement drives physical purchases. This creates recurring revenue models and deeper brand immersion.
Globalisation and Cross‑Cultural Licensing Are Accelerating
The global toy market is more interconnected than ever. IP now travels across borders at the speed of streaming, and licensors are adapting with region‑specific strategies that respect cultural nuance while maintaining brand consistency.
Key developments include:
- Asian IP gaining Western traction (anime, K‑content, gaming franchises)
- Western brands localising for emerging markets
- Multi‑territory licensing deals replacing fragmented regional agreements
- Global retail partnerships that synchronise product launches
The 7% rise in global toy sales across 12 key markets in 2025 underscores the importance of international licensing strategies that balance global reach with local relevance .
Retail Is Rebalancing: From Big‑Box Dominance to Omnichannel Ecosystems
Retail dynamics are shifting, and licensing strategies are shifting with them. The old model—anchor a line with a big‑box retailer and build outward—is giving way to a more diversified approach.
Three forces are driving this:
1. E‑commerce Personalisation
Algorithms surface niche licensed products to micro‑audiences, enabling long‑tail IP to thrive.
2. Direct‑to‑Consumer Expansion
Licensors and toy companies are building their own storefronts, subscription models, and exclusive drops.
3. Experiential Retail
Pop‑ups, themed events, and immersive brand activations are becoming licensing extensions in their own right.
This omnichannel landscape rewards licensors who can coordinate storytelling, product releases, and fan engagement across multiple touchpoints.
The Rise of Modular Licensing: Flexible, Fast, and Future‑Proof
Licensing agreements are becoming more modular to accommodate faster trends, shorter content cycles, and multi‑platform brand expression.
Modern licensing frameworks increasingly include:
- Short‑term capsule collections
- Limited‑run collaborations
- Digital‑only licensing (skins, avatars, virtual items)
- Multi‑tiered rights that separate physical, digital, and experiential categories
This modularity allows licensors to test concepts, respond to viral moments, and scale successful partnerships without long‑term risk.
Theatrical Rebounds Still Matter—But in a New Way
While streaming dominates day‑to‑day engagement, theatrical releases still create cultural peaks that drive licensing spikes. The 2025 slate is significantly stronger than 2024, with major action blockbusters and family sequels expected to boost toy demand .
However, the role of theatrical content has changed:
- It acts as a launch catalyst, not the sole driver
- It fuels cross‑platform storytelling
- It boosts collector interest as much as children’s demand
- It creates global marketing moments that amplify licensing campaigns
Licensors now treat theatrical releases as part of a broader content rhythm rather than the centrepiece.
What These Trends Mean for the Future of Toy Licensing
The convergence of kidult spending, streaming‑driven discovery, sustainability, STEAM alignment, and globalised fandom is reshaping the licensing landscape into something more dynamic, more digital, and more emotionally resonant.
The next phase of growth will likely be defined by:
- Hybrid physical‑digital ecosystems
- Faster, more flexible licensing models
- Data‑driven product development
- Cross‑generational brand strategies
- Sustainability as a baseline expectation
Licensing is no longer just about putting a character on a product. It’s about building worlds, nurturing communities, and creating multi‑platform experiences that feel meaningful to both children and adults.
