Gen Z's Plush-Toy Craze and the "Joy Economy": High-Growth Opportunities in the Adult Collectibles Market

The global adult collectibles and plush-toy market is undergoing a seismic shift, driven by Gen Z's embrace of the "joy economy"-a cultural and economic movement centered on emotional fulfillment, nostalgia, and community-driven consumption. With the global adult collectibles market projected to grow from $288.34 billion in 2024 to $489.48 billion by 2033, and the plush-toy segment expanding at a CAGR of 7.3%, investors are increasingly turning their attention to this high-growth sector. At the heart of this boom are brands like Jellycat and Pop Mart, which have mastered the art of blending emotional resonance with strategic innovation to capture Gen Z's-and now adult collectors'-hearts and wallets.

The Joy Economy: Nostalgia, Mental Health, and Community as Drivers

The surge in demand for plush toys among adults is not merely a fad but a response to deeper societal shifts. According to a report by Grand View Research, the global stuffed animal market is growing at 8.2% annually, fueled by the emotional value consumers attribute to these items. For Gen Z and millennials, plush toys serve as both comfort objects and nostalgic artifacts, offering solace amid economic uncertainty and social isolation. During the pandemic, for instance, Jellycat's revenue nearly doubled to $450 million in 2024, driven by a 66% year-over-year increase. The brand capitalized on the mental health crisis by positioning its products as "emotional companions," a strategy that resonated with consumers seeking tangible connections in a digital age.

Community-driven consumption further amplifies this trend. Social media platforms like TikTok and Reddit have become virtual showrooms for plush collectors, with Jellycat's #jellycathaul hashtag generating 20 million posts. Pop Mart, meanwhile, has leveraged scarcity-based drops and storytelling to create a sense of urgency and exclusivity. Its Labubu dolls, for example, generated $423 million in revenue in 2025-a 729% increase from 2023-by tapping into Gen Z's love for viral unboxing content and limited-edition releases.

Case Study: Jellycat's Niche Dominance

Jellycat's success lies in its ability to merge whimsy with emotional intelligence. The brand's 2024 revenue of $450 million was fueled by a strategic pivot to "kidult" culture, targeting women aged 25 and older with products like the "Jellyfood" line and immersive pop-up experiences. Its Shanghai pop-up café, which combined plush toys with a dining concept, exemplifies the brand's mastery of experiential retail. Financially, Jellycat's profit before tax more than doubled to £139 million in 2024, with Q3 2025 results showing a 7.0–7.5% conversion rate on its e-commerce platform.

Jellycat's marketing strategies also reflect a deep understanding of Gen Z's fragmented attention spans. Collaborations with K-pop stars like Song Yuqi and pop-up events like the Jellycat Fish & Chips at Selfridges have positioned the brand as a lifestyle essential rather than a mere toy company. As stated by a Kantar report, Jellycat's TikTok presence-2.1 million followers-has been instrumental in driving a 171% increase in consumer interest.

Case Study: Pop Mart's Global Scalability

Pop Mart's Q3 2025 financial results underscore its explosive growth, with revenue surging 245% year-on-year. The company's Labubu dolls, which embody the "mischievous yet kind-hearted" ethos of Gen Z, have become a cultural phenomenon. In the U.S. alone, Pop Mart's revenue increased by 1,270% in 2025, driven by a strategic focus on high-traffic flagship stores and the resumption of its spot sales model to manage product life cycles.

The brand's IP-first approach and omnichannel strategy have enabled it to dominate international markets. By 2025, 40% of Pop Mart's sales were generated overseas, with China's mainland market growing by 190%. Morgan Stanley analysts note that Pop Mart's product pipeline and global expansion plans position it to maintain its momentum into 2026.

Investment Implications

The adult collectibles market's growth is underpinned by three key factors:
1. Emotional Resonance: Brands that address mental health and loneliness-like Jellycat's "emotional companions"-are outperforming peers.
2. Community-Driven Marketing: Viral trends on TikTok and Reddit create self-sustaining demand, reducing reliance on traditional advertising.
3. Global Scalability: Pop Mart's success in the U.S. and China demonstrates the potential for cross-border expansion, particularly in markets with high Gen Z populations.

For investors, the focus should be on companies that combine emotional storytelling with agile product development. Jellycat's 66% revenue growth in 2024 and Pop Mart's 250% Q3 2025 increase highlight the sector's resilience and scalability. However, risks such as oversaturation and shifting social media trends must be monitored.

Conclusion

The plush-toy craze is more than a niche trend-it is a reflection of Gen Z's desire for tangible joy in an intangible world. As the global market for adult collectibles accelerates, brands that prioritize emotional connection, community engagement, and strategic agility will lead the charge. Jellycat and Pop Mart's financial and cultural dominance in 2025 offers a blueprint for investors seeking to capitalize on the joy economy's next wave.