From Discs to Display Shelves: How Digital Gaming Pushed Physical Stores Into the Kidult Toy Boom

From Discs to Display Shelves: How Digital Gaming Pushed Physical Stores Into the Kidult Toy Boom

For decades, the video game aisle was the beating heart of specialist entertainment retail. Stacks of boxed games, midnight launches, pre‑order bonuses, and the ritual of browsing physical shelves defined the culture of console gaming. But the last ten years have rewritten that script. As digital delivery has surged from niche convenience to dominant distribution model, the traditional revenue pillars of physical game stores have eroded. 

Yet the story isn’t one of decline — it’s one of reinvention. Faced with shrinking margins on physical software, retailers have pivoted into a category that has exploded in both cultural relevance and commercial value: Kidult toys.

This article explores how the shift from physical to digital game delivery reshaped the economics of game retail, why Kidult toys became the natural strategic pivot, and what this evolution means for the future of specialist entertainment stores.

1. The Digital Tsunami That Reshaped Game Retail

The move from physical discs to digital downloads didn’t happen overnight. It was a slow, steady migration driven by three forces: platform strategy, consumer behaviour, and economics.

Platform Strategy: The Console Makers Led the Charge

Sony, Microsoft, and Nintendo all recognised the long‑term value of digital distribution:

- Higher margins (no manufacturing, logistics, or retail cuts)  

- Direct consumer relationships (data, upsells, subscriptions)  

- Control of pricing and promotions  

- Reduced second‑hand market cannibalisation

The launch of digital‑only consoles — such as the PS5 Digital Edition and Xbox Series S — was the clearest signal yet. These devices removed the disc drive entirely, locking players into digital ecosystems.

Consumer Behaviour: Convenience Became King

Gamers embraced digital for reasons that are now obvious:

- Instant access  

- No need to swap discs  

- Cloud saves and cross‑device play  

- Frequent digital sales  

- No physical storage required  

By the late 2010s, digital accounted for the majority of console game sales globally. For many younger gamers, the idea of buying a boxed game is as archaic as renting DVDs.

Economics: The Retail Margin Squeeze

As digital adoption accelerated, retailers faced:

- Declining footfall  

- Fewer high‑margin accessories  

- Reduced pre‑owned trade‑ins  

- Less impulse purchasing  

- Fewer reasons for gamers to visit stores  

The result? A structural shift that forced retailers to rethink their product mix or risk going out of business.

2. Why Kidult Toys Became A Lifeline

As physical game sales declined, retailers needed categories that were:

- Collectible  

- Evergreen  

- Culturally relevant  

- Resistant to digital substitution  

- Appealing to the same demographic  

Kidult toys ticked every box.

The Rise of the Kidult Consumer

The “Kidult” — typically aged 18–45 — has become the most powerful force in the toy industry. They buy for themselves, not for children, and they spend big on:

- Collectibles  

- Premium figures  

- Model kits  

- Trading cards  

- Pop culture merchandise  

- LEGO 18+ sets  

- High‑end replicas  

- Plush, blind boxes, and novelty items  

Kidults now account for over 25-35% of all Toy sales in many Western markets, and the category is still growing.

Why Game Retailers Were Perfectly Positioned

Game stores already had:

- A customer base overlapping heavily with Kidult demographics  

- Staff knowledgeable about fandom culture  

- Shelf space freed up by declining physical game inventory  

- Strong supplier relationships with entertainment brands  

- A culture of collecting, pre‑ordering, and limited editions  

The pivot wasn’t just logical — it was inevitable.

3. The New Store Layout: From Game Wall to Geek Culture Hub

Walk into any modern game retailer and you’ll see the transformation immediately.

The Old Model

- 70–80% physical games  

- A small accessories section  

- A modest pre‑owned area  

- A few licensed items near the counter  

The New Model

- 20–30% physical games  

- Massive walls of collectibles  

- Dedicated Funko, Pokémon, and LEGO zones  

- Anime and manga merchandise  

- Plush, blind boxes, and gachapon  

- Premium statues and replicas  

- Board games and tabletop RPGs  

- Apparel and lifestyle products  

The store has shifted from a transactional space to a fandom destination.

4. The Economics Behind the Pivot

Kidult toys offer retailers something physical games never could: healthy margins and repeat purchasing.

Higher Margins

Collectibles often carry margins of 40–60%, compared to the razor‑thin margins on new game releases.

Repeatability

Gamers buy a new title every few months. Collectors buy:

- Entire sets  

- Variants  

- Seasonal drops  

- Limited editions  

- Mystery boxes  

- Accessories and display items  

Impulse Purchases

A £12 blind box or £20 plush is an easy add‑on. A £60 game is not.

Shelf Life

Games depreciate quickly. Collectibles often appreciate.

Cross‑Category Synergy

A fan who buys a digital game might still buy:

- A figure of their favourite character  

- A replica weapon  

- A plush  

- A T‑shirt  

- A soundtrack vinyl  

Digital delivery killed physical game sales, but it didn’t kill fandom. Retailers simply shifted to selling the physical expressions of that fandom.

5. The Cultural Shift: Gaming as Lifestyle, Not Just Entertainment

The rise of Kidult toys isn’t just a commercial trend — it reflects a deeper cultural shift.

Fandom Has Become Identity

People don’t just play games; they express them:

- On shelves  

- On desks  

- On clothing  

- On social media  

- In their homes  

Collectibles are a form of self‑branding.

The Aesthetic Economy

Instagram, TikTok, and YouTube have turned collectibles into content. Display shelves, unboxings, room tours, and desk setups have become cultural currency.

Nostalgia as a Market Force

Millennials and Gen Z grew up with Pokémon, Mario, Sonic, Halo, and Zelda. As they enter higher‑earning years, they’re buying back pieces of their childhood.

The Blurring of Toy and Hobby

Adult LEGO sets, premium model kits, and high‑end statues have normalised “grown‑up play”.

Game retailers didn’t just pivot to Kidult toys — they tapped into a cultural moment.

6. Case Studies: How Retailers Reinvented Themselves

GameStop / GAME

Both chains dramatically expanded their toy and collectible ranges, dedicating entire walls to Funko, Pokémon, and anime merchandise. Some stores now resemble hybrid toy‑pop culture boutiques.

Independent Game Stores

Indies have leaned heavily into niche collectibles, tabletop gaming, and community events. Many now run:

- Trading card tournaments  

- Model‑building workshops  

- Anime nights  

- Collector meet‑ups  

Hybrid Retailers

Stores like Forbidden Planet, HMV, and BoxLunch have blurred the lines between entertainment retail, toy store, and lifestyle brand.

The common thread? Diversification into Kidult culture for physical merchandise.

7. The Role of Licensing and IP Expansion

The explosion of Kidult toys is fuelled by the strength of gaming IP.

Gaming IP Has Become Mainstream

Franchises like:

- Pokémon  

- Fortnite  

- Minecraft  

- Zelda  

- Elden Ring  

- Final Fantasy  

- Halo  

- Assassin’s Creed  

…have become cross‑media giants.

Licensing Has Matured

Toy companies now produce:

- Premium statues  

- High‑end replicas  

- Limited‑run art pieces  

- Apparel collaborations  

- Plush lines  

- Trading cards  

- Vinyl collectibles  

Retailers benefit from a constant pipeline of new SKUs tied to major releases, anniversaries, and cultural moments.

8. The Future: What Comes Next for Physical Game Retail?

The pivot to Kidult toys isn’t a temporary fix — it has to be the new foundation. But the evolution isn’t over as these game retailers are now also competing with the mighty juggernaut that is Amazon. Just as these retailers have already embraced the concept of 'evolve or die', so they will keep on having to do that

1. More Experiential Retail

Expect more:

- In‑store events  

- Launch parties  

- Build nights  

- TCG tournaments  

- Photo‑ready displays  

Retailers will lean into community as a differentiator.

2. Exclusive Merchandise

Retail‑exclusive collectibles will become a key competitive advantage.

3. Subscription Boxes and Memberships

Curated collectible boxes, loyalty tiers, and VIP drops will drive recurring revenue.

4. Hybrid Digital‑Physical Bundles

Digital game + physical collectible bundles will grow, bridging the gap between digital delivery and physical retail.

5. Expansion Into Adjacent Categories

We’ll see more:

- Anime and manga  

- K‑pop merchandise  

- Home décor  

- Desk accessories  

- Lifestyle products  

The store becomes a fandom hub, not a game shop.

9. Conclusion: Digital Hasn't Killed Physical Game Stores Yet— It Forced It to Evolve

The shift from physical discs to digital downloads was a seismic change for the gaming industry. For retailers, it removed their core product overnight. But instead of fading away, many reinvented themselves by embracing the booming Kidult toy market.

This pivot wasn’t just commercially essential— it aligned perfectly with cultural trends. Gaming fandom is bigger, broader, and more expressive than ever. Kidult toys give fans a way to display their passions, and retailers a way to stay relevant in a digital‑first world.

Physical game stores are not obsolete yet - they transformed. And in doing so, they tapped into one of the most powerful consumer movements of the decade.

How To Grow International Toy & Games Sales

How To Grow International Toy & Games Sales

The toy and games industry continues to offer strong opportunities for businesses aiming to expand beyond their home markets. With ongoing interest in licensed products, collectibles, educational items, and digital-hybrid toys, companies have multiple paths to capture new customers worldwide. International expansion allows brands to diversify revenue, reach new consumer groups, and build resilience against local economic shifts.

Growing toy and games sales globally requires careful planning, cultural awareness, and smart execution. Whether you run a small independent studio, a family-owned manufacturer, or a growing brand, the process involves understanding different markets, adapting products and messaging, building reliable distribution, and creating effective marketing that resonates locally. This article provides a practical, step-by-step guide to help you scale internationally. We cover market selection, localization, distribution and logistics, marketing and branding, legal compliance, digital channels, partnerships, real-world examples, and ways to measure and scale success.

Understanding the Global Toy Market

The international toy and games landscape is diverse and dynamic. Building sets, puzzles, action figures, dolls, and board games—continue to perform well, particularly when tied to popular entertainment properties or trending themes. The rise of “kidults”—adults who purchase toys and collectibles for nostalgia, hobbies, or relaxation—has created a significant new consumer segment that many brands are now targeting successfully.

Different regions show distinct preferences. North America tends to favor licensed merchandise and high-production-value items. Europe often prioritizes educational, eco-friendly, and high-quality toys. Asia-Pacific markets are growing quickly, with strong demand for tech-integrated play, compact designs, and character-based collectibles. Latin America and parts of the Middle East and Africa present emerging opportunities as middle-class populations expand and retail infrastructure improves.

Key trends shaping the market include sustainability (consumers increasingly seek toys made from recycled or responsibly sourced materials), the blending of physical and digital play (app-connected toys, augmented reality experiences), and the influence of social media on discovery and virality. Seasonal peaks around holidays remain important, but year-round demand is growing thanks to collectibles, adult-oriented products, and gifting occasions beyond Christmas.

Challenges include varying safety regulations, counterfeit products in some regions, supply chain complexities, and the need to stand out in crowded categories. However, brands that address these thoughtfully can turn them into points of differentiation.

Market Research and Selection

Effective international growth begins with solid research. Identify promising markets by examining consumer demographics, purchasing power, retail landscape, and cultural attitudes toward play. Look at which categories perform best in each region—educational toys in parts of Asia, collectibles in North America and Europe, affordable family games in emerging markets.

Start with markets that offer lower entry barriers and cultural or language similarities to your home base. English-speaking countries like the United Kingdom, Australia, Canada, or Ireland can serve as natural first steps. From there, move into nearby or similar markets before tackling regions with greater differences in language, regulations, or consumer behavior.

Use available industry reports, trade show insights, online forums, and conversations with local retailers or distributors to build a clear picture. Analyze competition in each target market: Where are the gaps? Are there underserved niches such as STEM-focused toys, inclusive play items, or adult collectibles? Consider logistics costs, import duties, and existing trade agreements when ranking potential markets.

Conduct a simple SWOT analysis for each country or region under consideration. Identify your brand’s strengths (unique designs, strong IP, quality reputation), weaknesses (limited brand awareness, higher pricing), opportunities (growing adult collector base, demand for sustainable options), and threats (local competitors, economic instability). Begin with two or three pilot markets to test strategies without spreading resources too thin.

Localization Strategies

Localization goes far beyond translation. Successful brands adapt products, packaging, marketing, and even product names to feel native to each market. Cultural sensitivity is critical—certain colors, symbols, character designs, or themes can carry very different meanings across borders.

For example, packaging and instructions should be available in the local language, and any text or imagery should align with cultural norms. In some markets, compact or travel-friendly items perform better due to living space constraints. In others, larger, more elaborate sets are preferred. Character designs may need adjustment to reflect local beauty standards, modesty preferences, or popular aesthetics.

Pricing should reflect local purchasing power. Premium positioning works well in affluent markets, while value-oriented bundles or entry-level versions can open doors in more price-sensitive regions. Test localized versions through small-scale launches or focus groups to gather feedback before full rollout.

Packaging design should also meet local expectations around sustainability labeling, safety icons, and visual appeal. The goal is for the product to feel like it was made with that specific market in mind, not simply exported from elsewhere.

Distribution and Logistics

Choosing the right distribution model is one of the most important decisions in international expansion. A multi-channel approach often works best: combine direct-to-consumer e-commerce with partnerships in local retail and wholesale channels.

Online marketplaces such as Amazon’s international sites, Alibaba/Tmall for China, Mercado Libre in Latin America, and Shopee or Lazada in Southeast Asia make cross-border selling more accessible. These platforms often handle much of the customs, payment processing, and last-mile delivery.

For brick-and-mortar retail, work with established local distributors who already have relationships with toy stores, department stores, and hypermarkets. In some cases, opening a small local subsidiary or sales office can provide better control and faster response times once volume justifies it.

Partner with reliable third-party logistics providers to manage shipping, warehousing, and customs clearance. Consolidated shipping, regional fulfillment centers, and just-in-time inventory practices help control costs and reduce the risk of overstock during slower periods. Track shipments in real time and maintain clear communication with partners to avoid delays.

Marketing and Branding

A strong, consistent brand identity is essential, but marketing execution must be localized. Digital channels are the most cost-effective way to build awareness quickly. Platforms like TikTok, Instagram and YouTube allow you to reach consumers directly through short-form video, unboxings, play demonstrations, and user-generated content.

Influencer and creator partnerships can be highly effective. Work with family-oriented creators, toy reviewers, adult collectors, or niche hobbyists who already have engaged followings in your target markets. Authentic endorsements often outperform traditional advertising.

Licensing remains one of the most powerful tools in the toy industry. Securing rights to popular movies, TV shows, video games, or sports properties can dramatically boost visibility and sales when the license aligns with local tastes.

Create region-specific campaigns tied to local holidays, school breaks, or cultural events. Use paid social advertising, search engine marketing, and content marketing to drive traffic to localized landing pages or e-commerce stores. Track performance closely and reallocate budget toward what delivers the best return.

Legal and Regulatory Compliance

Compliance is non-negotiable. Toy safety standards differ significantly by region—ensure your products meet the relevant requirements in each market you enter. Work with accredited testing labs to verify compliance with chemical, mechanical, and flammability standards.

Protect your intellectual property by registering trademarks and designs in key markets. Counterfeit goods remain a persistent issue in some regions, so proactive monitoring and enforcement are necessary to safeguard brand value and consumer safety.

Understand import duties, value-added taxes, and any product-specific regulations (such as battery requirements or packaging waste rules). Engage local legal counsel or experienced customs brokers to navigate paperwork and avoid unexpected costs or delays.

E-commerce and Digital Expansion

Online sales continue to grow as a share of the toy market. A well-optimized, multilingual e-commerce site with localized currency, payment methods (including popular regional options), and shipping estimates builds trust and reduces cart abandonment.

Augmented reality features, virtual try-on experiences, and interactive product pages can differentiate your brand and help consumers visualize items in their own environment. Subscription models—monthly curated toy boxes, collector drops, or loyalty programs—encourage repeat purchases and deepen customer relationships.

Invest in local search engine optimization so your products appear when consumers search in their native language. Use data from website analytics, advertising platforms, and customer feedback to continuously refine your digital presence.

Partnerships and Collaborations

Strategic alliances can accelerate entry and reduce risk. Joint ventures or distribution agreements with established local players provide instant market knowledge, retail access, and credibility.

Co-branding opportunities with non-toy companies—fashion brands, food chains, sports teams, or environmental organizations—can create unique products that stand out. Pop-up shops, experiential events, and collaborations with local retailers allow you to test concepts with lower upfront investment.

Participate in major international toy fairs to meet potential partners, gather trend intelligence, and build relationships that support long-term growth.

Case Studies

Several brands illustrate successful international expansion. Pop Mart grew rapidly by focusing on collectible “blind box” formats and leveraging social media virality, celebrity endorsements, and pop-up retail experiences to enter markets across Asia, Europe, and North America.

Hasbro increased its international presence significantly by acquiring or partnering with local distributors, adapting product lines to regional preferences, and investing heavily in global marketing for core brands.

Lego recovered from near-collapse by refocusing on its core building-block system, crowdsourcing ideas from fans worldwide, creating region-specific sets, and expanding digital integrations that appealed to both children and adults.

These examples highlight the importance of staying true to brand strengths while adapting thoughtfully to local tastes and channels.

Measuring Success and Scaling

Define clear key performance indicators: revenue growth by market, customer acquisition cost, repeat purchase rate, online conversion, and retail sell-through. Use analytics tools to monitor performance in real time.

Conduct regular reviews to assess what is working and where adjustments are needed. Be prepared to pivot—exit underperforming markets if necessary and double down on high-potential ones.

As you grow, reinvest in infrastructure: regional warehouses, local teams, automated systems, and expanded product development capacity. Build an agile culture that learns quickly from each market and applies those lessons globally.

Conclusion

Expanding toy and games sales internationally is a rewarding but demanding journey. Success comes from thorough preparation, genuine adaptation to local consumers, strong distribution and marketing execution, and disciplined measurement. The global appetite for creative, fun, and meaningful play remains strong. Brands that approach expansion with curiosity, flexibility, and a commitment to quality can build lasting international presence.

Start with research and small, focused steps. Learn from each market you enter. Play the long game, and your brand can find new homes—and new fans—around the world.

If you already have some international distribution, maybe it's time you went direct to retail in some overseas markets. We can help you with key new hires overseas. Check out www.ToyRecruitment.com, we help companies like yours hire top performers across Global markets.

Toy Licensing: Kidults Are Now the Engine of Licensing Growth

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.