Toys and collectibles are injecting serious life into American retail, fueling demand from Gen X to anxiety-fueled Gen Z.

The best collectible brands have borrowed a page from the luxury playbook: manufacturing desire through scarcity. Limited drops, short windows, and low production runs turn an ordinary gadget or doll into a hot ticket item. Layer on the blind box mechanic — where you pay for the surprise, and the chase becomes addictive. Add in a favorite celebrity’s endorsement, and, as the kids say, that’s fire.

The New Luxury Playbook: Scarcity, Surprise & Social Currency

When K-pop superstar Lisa from Blackpink began wearing a Labubu keychain, celebrities like Dua Lipa and Kim Kardashian quickly followed suit. And just like that, a niche blind box became a viral retail phenomenon.

The rise of charm toy collectibles reflects the global influence of kawaii, a Japanese aesthetic rooted in cuteness, vulnerability, and emotional comfort, which began as a youth subculture. It has since evolved into a powerful retail strategy: rounded shapes and expressive faces trigger nostalgia, protectiveness, and emotional attachment, prompting consumers to spend more on Labubu, Sonny Angel, and icons like Sanrio’s O.G. Hello Kitty. Gen X remembers Hello Kitty, a cat-inspired icon that became one of Sanrio’s most successful characters and helped embed Japanese ‘cute’ culture on a global scale. The 52-year-old icon joined forces with Labubu for a well-received Labubu X Sanrio crossover, bridging generations.

The pressure to participate in the collectible economy is real: nearly three in five consumers report feeling pressure to buy the “hot” item of the year, with Gen Z (71%) and Millennials (67%) feeling it most acutely. One in three collectors says rare or trendy items make them feel more socially connected — a number that climbs to more than half of Gen Z. The most sought-after collectibles among U.S. consumers today include adult LEGO sets (34%), Pokémon and trading cards (29%), Squishmallows (23%), and Labubu figurines (20%), reflecting growing demand for products that create a controllable sensory experience.

Comfort in a High-Stimulus World

With a daily average of seven-plus hours of screen time, Gen Z and over half of today’s teenagers receive more than 237 notifications per day. The result is a generation experiencing what researchers are now calling accelerated cognitive aging, with many proactively seeking to escape digital overload. A 2026 survey found that 63% of Gen Z say they have deliberately tried to disconnect for their own well-being, and 81% wish they could unplug more easily; they’ve even started by bringing back the flip phone.

A generation comfortable with naming their vulnerabilities, the Gen Z shift in thinking has normalized plush keychains and bag charms into wearable comfort objects. For example, NeeDoh, the latest line of palm-sized, squeezable sensory fidget toys by Massachusetts-based Schylling, has transformed from a niche product to a viral sensation. Since its debut on TikTok earlier this year, the brand has experienced widespread stock shortages at retailers across the U.S., selling out its entire year’s inventory in just nine weeks — a reminder that tactile, comfort-driven products can spark real retail urgency.

The Kidult Economy

Collectibles aren’t just about dolls and keychains. With kidsumers aging up, trading cards are also a hot commodity. eBay sports card and collectibles sales hit $233 million in March alone, with analysts already calling 2026 the best year ever for collectibles, fueled by Pokémon, trading cards, and toys commanding prices that would have seemed absurd a decade ago. In the first quarter of 2026, more than 12 individual sales topped $1 million, a new record pace — and the momentum shows no signs of slowing.

The kidult segment now drives 28% of global toy sales, valued at $43.4 billion in 2026. With more disposable income, Gen X and Boomers are willing to pay premium prices for products tied to their childhood that resonate emotionally and offer a bit of escapism. Toy makers, like LEGO with its Goonies-inspired set, are responding in kind, reviving nostalgia-rich product lines and placing greater emphasis on collector editions.

Underlying much of the collectibles boom is something more tangible: a deliberate retreat from screens. Industry insiders are seeing the shift firsthand. Speaking from the ASTRA toy fair in Milwaukee, Hannah Rogge, Executive Director, Product Development at Klutz, noted that independent toy stores and parents alike are increasingly gravitating toward hands-on, screen-free play — reflecting broader demand for tactile, analog experiences. The Toy Association has dubbed it “Cozy Culture” — a tech-free reset toward comfort-focused, tactile play.

The Storefront Expansion

Global toy brands energized by collectibles are planting flags on American soil. Their stores are built around trend-driven assortments of blind boxes, collectible figurines, plush toys, building sets, anime merchandise, licensed characters, and limited-edition collaborations that encourage repeat visits and impulse purchases.

Miniso — which has evolved into a full IP-driven pop culture destination featuring anime, manga, licensed characters, blind boxes, and collectible toys — is bringing that concept to a 10,000-plus-square-foot flagship at BLVD Las Vegas on the Strip, alongside attractions including the world’s largest In-N-Out Burger. Pop Mart has opened stores at Westfield Century City, the Glendale Galleria, and Westfield UTC Mall in La Jolla, and recently established a 22,000-square-foot U.S. headquarters in Culver City to anchor its North American expansion. Care Bears owner Cloudco Entertainment just announced an expanded European licensing and retail footprint ahead of the brand’s 45th anniversary. The move reinforces how enduring IP — particularly nostalgia-rich brands with emotional resonance — continue to evolve for multigenerational audiences through licensing, retail partnerships, and experiential activations.

Mainstream retailers are adapting just as quickly. Five Below is proving that retailers don’t need to create the next viral collectible — they simply need to recognize it first. After spotting the meteoric rise of the Squishy Dumpling on social media, the retailer amplified the trend through creator content, in-store events, and expanded assortments, helping drive a 32.5% increase in quarterly sales and demonstrating how social listening has become one of retail’s most valuable merchandising tools.

Retail Implications

Adult shoppers spent $1.8 billion on toys in Q1 2025 alone — making them the largest spending cohort across all age groups, per Circana. But the collectibles consumer isn’t a single profile — it’s a cumulative audience. The anxiety-driven Gen Z is hunting for the latest NeeDoh drop. The 40-something kidult on a mission for a retired LEGO set. The Labubu completist is refreshing a Pop Mart app, waiting for the next blind box release. Each arrives with intention, urgency, and spending power. Together, they’re circling stores like it’s Black Friday every day — and for landlords, brokers, and developers paying attention, that kind of recurring, high-intent traffic is worth a very close look.

To determine how foot traffic may be impacting your tenant mix, explore our archive of foot traffic reports and contact your Colliers advisor to discuss the collectibles boom’s impact on your portfolio.