Emotional economy: Adults are fueling China's plush toy boom

If you thought collecting plush toys was just for kids, think again. In China, plush toys have become a hot commodity among adult consumers, sparking scenes of excitement, and sometimes even a little chaos. Since living in Beijing, I've seen some of the fanfare and fuss around these cute collectibles firsthand: grown men throwing tantrums in toy stores when their favorite plushies sell out, and plush toys dangling from mini handbags across the city.

More than just a sense of childhood nostalgia or a collector's craze, plush toys have become a centerpiece of China's "emotional economy," with younger millennials and Gen Z leading the charge.

In this context, the emotional economy refers to financial decisions made to support emotional needs, psychological tendencies and personal values.

In September 2025, the Just So Soul Institute in collaboration with the Shanghai Youth Research Center released the "2025 Gen Z Emotional Consumption Report," which focuses on the underlying logic of emotional consumption among young people.

According to the report, respondents between the ages of 18-35 are the main force behind emotional consumption, with those born between 1990 and 2000 making up the majority. The average monthly expenditure on emotional consumption amongst these groups is said to be 949 yuan (around $138).

The report states that 56.3 percent of young people are willing to pay for emotional value, a 16-percent increase from 2024.

The report further shows that 34.2 percent of respondents were making emotional purchases for self-healing or to relieve negative emotions. Of these purchases, more than 40 percent included physical consumption in the form of stuffed animals, stress-relieving toys and other emotionally uplifting items.

This is a big reason why the plush toy market in China is booming, and adults, or "kidults" – adults who retain a childlike spirit in their psychology, interests and behaviors – are now a major force behind its growth.

This was further confirmed in the "2025 Gen Z Double 11 Consumption Behavior Report" which found that 93.1 percent of Chinese consumers born after 1995 seek emotional value in their spending, on everything from plush toys and concerts to physical or virtual companions.

While some may label it the "Peter Pan effect" of the younger generation not wanting to grow up, others regard this move as emotional comfort and self-expression. In fast-paced urban life, plush toys serve as a form of healing for many. Academic competition, internal workplace dynamics, social anxiety and uncertainty about the future combine to shape their strong internal drive for emotional connection and understanding.

Research suggests that a soft touch can significantly reduce the levels of stress hormone cortisol. Adults are investing in cute companions to cope with stress, loneliness and the pressures of adulthood.

Pop Mart, a leading Chinese toy retailer, has become a cultural phenomenon. Boosted by last year's Labubu craze, Pop Mart's revenue increased 204 percent year on year to 13.88 billion yuan in the first half of 2025. Its blind box model offers mystery figures and collectible value and taps into the younger generations craving for instant gratification.

Pop Mart stores are often scenes of excitement, with adults lining up for limited editions and trading updates on new releases. 

The company's success reflects a generational shift: younger consumers are less drawn to traditional luxury and more to pop culture and social media-driven brands, and they're willing to pay.

According to iiMedia Report's "Insight report on China's emotional economy consumption trends from 2025 to 2029," research shows that China's emotional consumption market has grown from 1.63 trillion yuan in 2022 to 2.31 trillion yuan in 2024. This number is expected to exceed 4.5 trillion yuan by 2029.

Customization and personalization options are also becoming more prevalent, allowing consumers to create unique plush toys tailored to their preferences. With the upcoming Chinese New Year for example, customized plushies centered around the Year of the Horse plushies are a common sighting and make for excellent gift ideas during this season – even if it's to gift yourself.

The plush toy market in China is expected to continue expanding, driven by changing consumer preferences, gifting culture, and the popularity of character-based merchandise among children and adults alike.

But it's not only a Chinese phenomenon. Industry data and consumer insights company Circana released toy sales figures for the first half of 2025, and sales across 12 global markets increased by 7 percent compared to the same period in the previous year. Products like building sets, trading cards, games, plush toys and collectibles saw an increased demand from both teens and adults. Collectibles are said to be a driving force for the toy market, with first half sales up 35 percent globally.

As plush toys and collectibles become a staple of adult life, they are not just a trend but a reflection of deeper emotional needs and cultural shifts. Whether for comfort, nostalgia or self-expression, there's a plushie for everyone.