Jellycat and Squishmallows purchases by millennials, Gen Z are boosting soft toy market

The soft toy industry’s most important consumers are not toddlers, but millennials and members of Generation Z. Experts examine why

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Social media content creator Carter Kench with his collection of Squishmallows in Los Angeles, California. The soft toy industry’s most important consumers are millennials and Gen Z. Photo: Getty Images

Published: 4:15pm, 15 Jan 2025

Gen Z and millennials’ love of soft toys is bringing some cheer to the toy industry.

Young adults adore their stuffed animals, whether they are hanging onto the battered old ones from their childhood, buying a viral 5ft (150cm) goose on TikTok Shop, or spending a premium to add to their collections of Squishmallows.

A recent Jellycat pop-up in the London department store Selfridges was filled with patrons buying fuzzy US$25 – or more – versions of fish and chips, mimicking a British takeaway shop, The Economist newspaper reported. In Asia, a furry, spiky-toothed rabbit creature called Labubu has a hold over people well into their thirties.

This comes amid struggles for the toy sector.

Labubu figures displayed at a Popmart in Jakarta, Indonesia. The rabbit creature has a hold over people well into their thirties in Asia. Photo: Shutterstock

A report by the market research company Circana found that toy sales across the G12 nations – including Australia, Germany, the UK and the United States – declined by one per cent in the first half of 2024. That was an improvement on the eight per cent decrease in 2023, which Circana credited to purchases made by adults for themselves.