Generation Z "refuses to grow up," igniting a toy craze! POP MART's net profit skyrockets by 400%, Jellycat's profit doubles
Generation Z is leading a wave of adult consumers buying toys for themselves, with POP MART's net profit soaring nearly 400% in the first half of 2025, and UK-based Jellycat's profits also doubling. The industry refers to this as the "happiness economy" or "healing consumption," as economic pressure and widespread feelings of loneliness drive young people to seek emotional comfort and community belonging through toy purchases
Generation Z is driving a global toy consumption craze, bringing significant performance growth to related companies. According to global consumer insights company Circana, 2025 is set to be "the hottest year for adults buying toys," with 76% of UK Generation Z consumers aged 18 to 34 purchasing toys for themselves or other adults.
Brands represented by China's POP MART and the UK's Jellycat have become the core driving force of this trend. POP MART's performance in the first half of 2025 is particularly outstanding, with net profit surging nearly 400% and revenue increasing by 204.4% year-on-year to 13.88 billion RMB.
The industry summarizes this phenomenon as the "happiness economy." Under economic and social pressures, adults seek emotional comfort and nostalgic experiences through consumption. Plush toys have risen to become the fourth most popular toy category among adults, following game puzzles, LEGO bricks, and figurine models.
Analysts point out that the underlying motivation stems from the unique pressures faced by Generation Z, including high housing prices and ongoing inflation, prompting them to seek small joys and emotional belonging through "healing consumption" that offers companionship and community attributes in an uncertain environment.
Explosive Growth of POP MART and Jellycat
The plush toy craze has brought significant financial benefits to related companies. POP MART's revenue reached 13.88 billion RMB (approximately 1.93 billion USD) in the first half of 2025, with net profit growth nearing 400%. The Labubu doll alone contributed approximately 423 million USD to the company's global revenue in 2024.
Jellycat also performed impressively, with revenue growth of 66% to 333 million GBP in 2024, a significant increase from 200 million GBP in 2023. Pre-tax profit more than doubled, rising from 67 million GBP the previous year to 139 million GBP.
Jellycat CEO Arnaud Meysselle stated:
"It's fantastic to see such a warm response to our new characters from people of all ages."
"Peter Pan Effect" Reflects Adult Pressure
Circana's Symonds attributes this trend to the "Peter Pan Effect," a psychological syndrome where adults struggle to grow up and take on responsibilities. She explained, "When you're a child, you can't wait to grow up, but when you become an adult, you realize that childhood was the best time of your life."
Generation Z adults face a relatively harsh living environment. Economic and geopolitical turmoil continues to impact their lives, and the recurring images of conflict on social media exacerbate feelings of insecurity, while the rising cost of living continually erodes their purchasing power. In this environment, traditional life milestones such as buying a home and starting a family have become unattainable for many.
This reality gap has given rise to the so-called "doomsday consumption" mentality: Since they are unable to achieve significant goals like homeownership, many Generation Z individuals turn to "small joys" such as travel, designer items, and collecting toys to seek immediate comfort and emotional compensation, thereby regaining a sense of control over their lives in an uncertain era.
A Sense of Community Drives Collecting Behavior
In addition to economic pressure, the pervasive sense of loneliness is also profoundly influencing the consumption choices of Generation Z. For many of them, buying and collecting toys has become an emotional way to seek community belonging. According to a survey conducted by the dating app Hinge in March this year among Generation Z in the UK, as many as 85% of respondents reported often feeling lonely.
Joe Evans, the toy buying manager at the high-end department store Selfridges, pointed out that Jellycat has become the fastest-growing brand in sales at the store. Over the past two years, there has been an "explosive growth" among Generation Z and millennial customers who desire to "integrate into a community through collecting." He further explained, "When you buy Jellycat, you feel like you are part of a community, with many online groups communicating, and people competing to buy the best and latest products."
