Now that the Christmas season is over, the toy industry is taking stock of how they have done this season. Christmas accounts for most of the toy sales throughout the year.
The global toy market size was USD 129.45 billion in 2020. The global COVID-19 impact has been unprecedented and staggering, with the product witnessing a positive demand shock across all regions amid the pandemic.
Based on our analysis, the global market exhibited a stellar growth of 22.30% in 2020. The market is projected to grow from USD 141.08 billion in 2021 to USD 230.64 billion by 2028 at a CAGR of 7.30% in the 2021-2028 period. The sudden fall in CAGR is attributable to this market’s demand and growth, returning to pre-pandemic levels once the pandemic is over. The US market size for the total toy industry is approximately $27 billion. See the North American market trend growth in the chart below and learn more here.
But there is something quite peculiar happening in the toy market – “kidults.”
There are two things that are keeping the toy industry afloat right now: inflation and a consumer group known as kidultsThese kids at heart are responsible for one-fourth of all toy sales annually, around $9 billion worth, and are the biggest driver of growth throughout the industry, according to data from the NPD Group. Kidults, on the other hand, are coveted consumers because they are often willing to spend more money than others on items for themselves.
Toy industry data is anecdotal of what is happing to the youth in America – “kidults.”
What is the youth (Gen Z) doing? There are at least six million men in the US of “prime age” (age 25-54) who are out of the workforce for various reasons. Historically, this number has been getting larger at a rate faster than the growth of total men in that age group. See the rising trend of men leaving the workforce in the chart below and learn more here.
The youth, including men, have had far more opportunities and access to grants and funding for higher education, greater technological assistance, and their family’s access to subsidy programs. And this has not been enough – youth wealth accumulation today is terrible compared to previous generations. See this exemplified in the chart below.
This is either a result or a cause of much of why the youth have become “kidults.” – and become despondent, demotivated, lacking ambition, and even depressed, choosing to check out of today’s society. You know the stereotype – sitting in their parent’s basement playing X-Box eating MacDonald’s, and getting fat. Others escape via drugs, alcohol, and various forms of sexual diversions.
The next generation of “kidults” does not bode well for the future of America.
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