Japan’s Toy Market Thrives on Adult Demand Despite Declining Birth Rate

Japan’s toy industry is defying demographic expectations. Despite a persistently low birth rate, the country’s toy market surged to a record ¥1.1 trillion (US$7.4 billion) in the 2024 fiscal year, marking a 7.9% year-on-year growth and a 36% increase over the past decade. The surprising driver? Adults.

According to the Japan Toy Association, the boom is largely fueled by single-person households without children, where toys have evolved from childhood staples into adult hobbies and tools for self-expression. In fact, average toy spending among childless single-person households in 2024 reached ¥14,498, surpassing the ¥12,367 spent by multi-person households with children.

Trading Cards, Tamagotchis, and Plush Appeal

Leading the charge are trading cards and character merchandise, which have seen explosive growth. Nostalgic items like the Original Tamagotchi, a digital pet first popularized in the 1990s, have made a strong comeback, now embraced by adult collectors and tourists alike. Similarly, stuffed animals—once considered strictly for children—are now widely purchased by adults for comfort, décor, and social media content.

This shift reflects a broader cultural trend in Japan where toys are no longer confined to childhood. “The conventional image of toys being for kids has started to change, as they became a hobby for adults and a means of self-expression,” said Satsuki Kimura, economist at the Meiji Yasuda Research Institute.

Social Media and Emotional Connection

Social media platforms like Instagram and TikTok have amplified this trend, turning toys into lifestyle accessories and conversation starters. Adults are increasingly sharing toy collections, unboxing videos, and DIY customization projects, creating vibrant online communities around play.

This phenomenon isn’t unique to Japan. Globally, the “kidult” market—adults who buy toys for themselves—has become a major growth segment. According to Circana (formerly NPD Group), kidults accounted for 25% of toy sales in the U.S. in 2023, with similar patterns emerging in South Korea, Taiwan, and parts of Southeast Asia.

Industry Response and Innovation

Toy manufacturers are adapting quickly. Japanese brands like Bandai, Takara Tomy, and San-X are designing products specifically for adult consumers, including high-end collectibles, limited-edition releases, and tech-integrated toys. International players such as LEGO and Hasbro have also expanded their adult-focused lines, offering complex builds and nostalgic reboots.

Retailers are responding too. Stores across Tokyo and Osaka now feature dedicated sections for adult toys, and pop-up events targeting grown-up collectors are becoming more frequent. Even capsule toy vending machines (gachapon) are being rebranded to appeal to older audiences with themes ranging from miniature architecture to gourmet food replicas.

A New Definition of Play

Japan’s toy market evolution underscores a broader redefinition of play. In a society grappling with aging demographics and social isolation, toys offer not just entertainment but emotional connection, stress relief, and creative expression.

As the industry continues to innovate, Japan may serve as a blueprint for other markets navigating similar demographic shifts. The message is clear: play is no longer just for kids—it’s a lifelong pursuit.