Gen Z's "refusal to grow up" sparks a toy craze! Pop Mart's net profit soars 400%, Jellycat's profits double.

Generation Z is driving a global toy consumption craze, leading to significant performance growth for related companies. According to global consumer insights company Circana, 2025 will be "the hottest year for adults buying toys," with 76% of 18-34-year-old Gen Z consumers in the UK purchasing toys for themselves or other adults.

Brands like China's Pop Mart and the UK's Jellycat are at the core of this trend. Pop Mart's performance in the first half of 2025 is particularly outstanding, with net profit surging nearly 400% and revenue growing 204.4% year-on-year to 13.88 billion yuan.

The industry has summed up this phenomenon as the "happiness economy." Under economic and social pressure, adults find emotional comfort and nostalgic experiences through consumption. Plush toys have become the fourth most popular toy category among adults, after puzzles, Lego bricks, and figurines.

Analysts point out that the deeper reasons stem from the unique pressures faced by Gen Z, including soaring housing prices and ongoing inflation. These factors inspire "healing consumption" that offers a sense of companionship and community, allowing them to seek small moments of happiness and emotional belonging in uncertain times.

Explosive Growth for Pop Mart and Jellycat

The plush toy craze has brought significant financial gains to related companies. Pop Mart’s revenue in the first half of 2025 reached 13.88 billion yuan (about $1.93 billion), with net profit up nearly 400%. The Labubu doll alone contributed about $423 million to the company’s global revenue in 2024.

Jellycat has also performed impressively, with 2024 revenue growing 66% to £333 million, a substantial rise from the £200 million in 2023. Pre-tax profit more than doubled, rising from £67 million the previous year to £139 million.

Jellycat CEO Arnaud Meysselle said:

"It's wonderful to see people of different ages respond so enthusiastically to our new characters."

"Peter Pan Effect" Reflects Adult Pressure

Circana’s Symonds attributes this trend to the "Peter Pan effect," a psychological syndrome where adults find it difficult to grow up and take responsibility. She explains: "When you’re a child, you can’t wait to be an adult. But once you become one, you realize childhood was the best time in your life."

Gen Z adults face relatively harsh living conditions. Ongoing economic and geopolitical upheavals impact daily life, while the constant replay of conflict on social media heightens insecurity. Rising living costs continuously erode their purchasing power. Under such circumstances, traditional milestones like buying a house or starting a family have become out of reach for many.

This gap between reality and expectations has led to a so-called "doomsday consumption" mentality: Since major goals like home ownership are unattainable, many Gen Zers turn to traveling, designer products, and even collecting toys as "small happiness" consumption for instant comfort and emotional compensation, regaining a sense of control over life in uncertain times.

Community Belonging Drives Collecting Behaviors

Beyond economic pressure, prevalent feelings of loneliness are also profoundly influencing Gen Z’s consumer choices. For many, buying and collecting toys has become a way to seek emotional connection and community belonging. According to a survey conducted by dating app Hinge in the UK this March, as many as 85% of respondents said they often feel lonely.

Joe Evans, head of toy procurement at high-end department store Selfridges, notes that Jellycat has become the fastest-growing brand in the store. In the past two years, Gen Z and millennial customers eager to "join a community through collecting" have shown explosive growth. He further explains: "When you buy Jellycat, you feel like you’re part of a community, with many online groups for interaction, and people compete to buy the best and newest products."

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