Trends Shaping the Collectible Toy Market
The collectible toy market is constantly evolving, with various trends influencing the value and desirability of certain items. One of the most significant trends is the power of nostalgia, particularly among Gen X and older millennials. Collectibles tied to their childhood memories, such as original Dungeons & Dragons items, 90s Star Wars figures, and early comics or baseball cards, are likely to perform well as these demographics have more disposable income to invest in their passions [1].
However, collectors should be cautious when it comes to fad-based collectibles. While items like Beanie Babies, Funko Pops, and NFTs may experience a surge in popularity, they often crash in value over time, making them risky long-term investments [1]. Instead, savvy collectors are turning their attention to overlooked and underappreciated items that may appreciate in value as nostalgia and scarcity drive up prices. Early Dungeons & Dragons products and American Girl doll accessories are prime examples of items that were not initially seen as collectible but have since become valuable [1].
Another trend to watch is the rise of collectibles tied to popular media franchises. As younger generations who grew up with the Marvel Cinematic Universe and Fortnite seek to acquire memorabilia, items related to these franchises may become highly sought-after in the future [1].
Despite the allure of collectible toys, some experts advise against trying to time collectible bubbles and instead recommend focusing on practical, everyday items that people will always need, such as clothes, furniture, books, and sports gear [1]. By investing in these essential items, collectors can build a more stable and reliable collection that is less susceptible to the whims of the market.
[1] ‘What collectibles do you think will have a strong market in 10-15 years?’Emerging Technologies and Innovations in Collectible Toy Design
As the collectible toy market continues to evolve, emerging technologies and innovative design trends are transforming the way collectors engage with their beloved items. One of the most exciting developments is the integration of Augmented Reality (AR) and Virtual Reality (VR) into the toy collecting experience. Sets like LEGO Hidden Side combine physical construction with an AR app that allows users to interact with hidden creatures and engage in a video game-like experience. Similarly, K’NEX Thrill Rides kits enable users to “ride” the roller coasters they build using a VR app and cardboard goggles, enhancing the immersive nature of the toy.
Customization and personalization are also becoming increasingly important in the world of collectible toys. Platforms like CryptoKaiju and Cryptoys allow collectors to personalize their digital collectible toys with unique traits, animations, and accessories, creating a more engaging and interactive experience. This level of customization not only appeals to collectors’ desire for individuality but also fosters a stronger emotional connection to their digital collectibles.
Another groundbreaking trend is the emergence of “digital twins” or “phygital toys” that bridge the gap between the physical and digital realms. These innovative collectibles link physical toys with unique digital representations on the blockchain, providing verification of authenticity and ownership while also enabling enhanced experiences. CryptoKaiju, for example, uses NFC technology to map physical toys to unique non-fungible tokens (NFTs) on the Ethereum blockchain, allowing collectors to prove the authenticity of their Kaiju and reveal its unique characteristics.
Diversity and inclusivity are also driving forces in the evolution of collectible toy design. Brands like Barbie are introducing dolls that reflect a wider range of ethnicities, body types, and professional aspirations, appealing to a more inclusive collector base. Barbie’s 60th anniversary campaign featured the release of 20 role model dolls inspired by real women from 18 different countries, showcasing diverse backgrounds and achievements.
Finally, the rise of screen-free coding toys is introducing a new generation to the world of programming and computational thinking. Toys like Learning Resources’ Coding Critters and Fisher-Price’s Code-a-Pillar Twist teach coding concepts to young children without the need for screens, fostering problem-solving skills and creativity in a hands-on, interactive manner.
As these emerging technologies and innovative design trends continue to shape the collectible toy market, collectors can look forward to a future filled with immersive, personalized, and inclusive experiences that blur the lines between the physical and digital worlds.
Investment Opportunities and Collector Demographics
While collecting toys is primarily a hobby driven by passion and nostalgia, some collectors view their acquisitions as potential investments. However, it’s important to approach toy collecting as an investment strategy with caution. Generally, toy collecting is not a reliable way to build wealth, as most action figures and collectibles are more likely to lose value over time rather than appreciate [1]. That said, there are some exceptions, such as officially licensed figures, Japanese figures, and toys of popular characters that are in good condition [1].
For those interested in investing in collectible toys without purchasing entire items, fractional ownership platforms like Rally offer the opportunity to own a portion of valuable collectibles. Additionally, the emergence of blockchain-based digital collectibles, such as Reddit’s Collectible Avatars, provides new investment opportunities in the digital realm. These NFTs have seen sustained interest, with over $3.3 million in trading volume over a three-month period [2].
Another way to gain exposure to the collectible toy market is by investing in the stocks of major toy companies like Hasbro and Mattel [1]. These companies have a significant presence in the collectibles space and can provide a more stable investment option compared to individual toys.
The collectible toy market is also experiencing significant demographic shifts. The “kidult” demographic, consisting of consumers aged 12 and older, now accounts for 60% of the dollar growth in the toy industry, despite representing only 25% of sales [3]. This group, which includes adults without children, is a significant and growing segment of toy collectors, willing to spend more on high-quality, nostalgic items.
Social media platforms, influencers, and viral trends are also playing an increasingly important role in shaping the popularity and collectability of certain toys. The success of YouTube channels like “Ryan’s World” and the engagement of the “Teletubbies” TikTok account with an older audience demonstrate the power of social media in driving toy sales and collectability.
As the collectible toy market continues to evolve, investors and collectors alike must stay attuned to these shifting demographics and the growing influence of social media to make informed decisions about which toys to acquire and hold onto for potential long-term value.
[1] ‘Collecting as an investment’[2] ‘Reddit Announces Third Generation NFT Launch – NFT Plazas’
[3] ‘Move over kids, ‘kidults’ are the new demographic shopping the toy aisle’
