The marketing department, as we know it, is obsolete.
Generative AI develops millions of personalised ads in milliseconds. Consumers shape brand narratives in real-time. Predictive algorithms anticipate needs before customers even recognise them. The traditional marketing playbook isn’t just outdated; it’s collapsing. Legacy teams, built on rigid hierarchies and campaign cycles, are being outpaced by AI-augmented ecosystems designed for continuous adaptation.
Tomorrow’s marketing function won’t be a department. It will be an intelligence system embedded within product development, customer experience, and behavioural data science. Brands that fail to restructure will not just fall behind; they will disappear.
Winning in this new landscape requires more than AI-driven automation. Emotional intelligence, ethical AI governance, and seamless integration with business operations will separate leaders from laggards.
The shift is already happening. The only question is: how fast can marketing teams evolve?
The five pillars of the future marketing team
#1. AI-Augmented Strategy Teams – Humans and Machines as Co-Pilots
The future of marketing is not about AI replacing human creativity; it’s about AI augmenting it. In the next decade, marketing teams will no longer rely on static consumer personas or outdated segmentation models. Instead, they will deploy real-time predictive marketingengines powered by AI that adapt to shifting consumer behaviours instantaneously.
But here’s the critical distinction: AI will not replace human intuition but enhance its precision. The most successful marketing teams will be those that train AI to think like a strategist while ensuring humans retain control over brand ethos, ethical boundaries, and cultural nuance.
Nike’s marketing team has already embedded AI into its decision-making process, using machine learning to predict product demand, optimise pricing, and create hyper-personalised consumer journeys. However, Nike does not hand over creative control to algorithms; it ensures AI insights serve human-led storytelling and brand building.
However, AI’s increasing role raises governance concerns. If left unchecked, algorithmic bias, AI hallucinations, and opaque decision-making processes can erode consumer trust. Google’s ad-targeting models, for instance, have faced scrutiny for bias in content distribution, highlighting the need for marketing teams to establish AI ethics frameworks.
The human component will remain irreplaceable. AI can crunch data, but it cannot understand cultural nuances, context, or the emotional weight of a story.
Marketing leaders must own the governance of an AI-driven strategy, ensuring automation enhances brand trust rather than undermines it.
#2. Consumer intelligence & behavioural science units to decode decision-making in real-time
The future of marketing will not be driven by demographics but by deep behavioural insights. Real-time consumer intelligence hubs will help track sentiment, subconscious decision-making, and predictive behavioural shifts.
Neuroscience, biometric tracking, and AI-driven sentiment analysis will become the foundation of modern marketing teams. Instead of just asking consumers what they think, brands will measure how they feel in the moment. Eye-tracking, galvanic skin response, and neuro-marketing scans will reveal how audiences react to products, content, and messaging, eliminating the guesswork from engagement strategies.
Unilever has already integrated neuroscience into its advertising research, measuring emotional responses at a subconscious level. By analysing brain activity, Unilever can determine whether an ad creates an authentic emotional connection before it ever reaches a consumer’s screen, ensuring campaigns resonate deeply rather than rely on assumptions.
However, access to such insights comes with ethical responsibility. As marketing teams gain deeper access to real-time consumer psychology, the risk of manipulation increases. Personalisation cannot become digital surveillance.
Brands that thrive will use behavioural data to enhance consumer experiences, not exploit them. Ethical AI oversight within marketing teams will be non-negotiable.
#3. Hyper-personalisation & growth teams leading the shift from segments to individuals
Marketing will no longer be about targeting audiences; it will be about orchestrating individual consumer journeys in real time. Growth teams will shift their focus from optimising channels to engineering highly individualised consumer pathways powered by AI and real-time identity graphs.
Spotify’s AI-driven campaigns, like Discover Weekly and Wrapped, are personalised brand experiences rather than traditional marketing tools. Every interaction refines the algorithm, ensuring recommendations grow more precise, engagement deepens, and retention soars.
This level of hyper-personalisation presents a paradox. The more tailored the experience, the more invisible the marketing becomes. When done well, the consumer does not feel targeted; they feel understood. But when algorithms misfire, the illusion shatters.
Growth teams of the future will need to master the balance between automation and authenticity, ensuring AI-driven personalisation enhances human connection rather than replacing it.
#4. Decentralised, agile creative networks and the end of the traditional in-house model
Marketing teams will no longer operate as rigid, in-house departments. Instead, they will function as fluid, decentralised creative networks, tapping into on-demand talent pools powered by AI-driven collaboration platforms.
Gucci Vault has already embraced decentralised creativity, collaborating with independent digital artists and Web3 designers rather than dictating brand aesthetics from a central creative team. By co-creating with digital-native communities, Gucci ensures its brand narrative evolves organically rather than being imposed from the top down.
Maintaining brand consistency in a decentralised model will be challenging. Future marketing leaders must find ways to empower external creators while ensuring alignment with brand identity.
#5. Ethical & sustainable marketing frameworks: the new non-negotiable
Marketing will no longer be judged solely on performance metrics. The future belongs to brands that align with consumer values and embed ethics and sustainability into their strategies.
Patagonia’s self-imposed carbon tax and long-term sustainability initiatives have proven that consumers reward brands whose actions match their messaging. If a company fails in this area, it can lead to serious greenwashing and ethical mistakes that destroy trust. This is especially true because AI-powered fact-checking tools and decentralised watchdog communities can quickly reveal inconsistencies.
The rise of regenerative marketing will push brands beyond sustainability pledges toward long-term societal impact. Companies will shift from minimising harm to actively contributing to environmental and social well-being. This will require marketing teams to collaborate with policymakers, sustainability experts, and ethical data specialists, creating a new discipline where profit and purpose are no longer opposing forces but interconnected drivers of success.
The future marketing team must integrate ethics into every stage of strategy and execution, ensuring profit and purpose are interconnected rather than opposing forces.
The future marketing leader – a hybrid of technologist, psychologist, and strategist
The CMO role is disappearing. In its place, a new breed of marketing leader is emerging, one who blends data fluency with behavioural science and technology expertise with strategic vision.
Companies like Adobe and Tesla already embed AI, automation, and predictive analytics into their core strategies. But successful marketing leaders will not just be digital experts – they will be experience architects, shaping every consumer touchpoint across an increasingly fragmented landscape.
As marketing, product development, and customer experience become inseparable, the Chief Growth Officer or Chief Experience Officer will replace the traditional CMO, reflecting marketing’s new mandate: not just to promote but to engineer adaptive, intelligent brand ecosystems.
The Marketing Team as a living intelligence system
The marketing team of the future is not just a department. It works as a living, changing system. AI helps boost human creativity, insights about customer behaviour guide decisions, and decentralised networks share brand stories.
But technology alone will not define the winners. The brands that thrive will understand the irreplaceable role of human judgment – the ability to interpret, contextualise, and ethically apply data-driven insights.
To future-proof their marketing teams, organisations must:
Invest in cross-functional talent – marketers must be fluent in AI, behavioural psychology, and digital ecosystems.
Establish AI governance frameworks – bias, privacy, and transparency will be critical.
Shift from campaign-based marketing to real-time experience management or risk irrelevance.
Marketing is no longer a function. It is the foundation of consumer trust, brand longevity, and sustained competitive advantage. The next era will not belong to those who adapt; it will belong to those who lead the transformation.
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Brand loyalty is no longer about what you buy – it is about who you are. Consumers do not just choose brands; they pledge their allegiance. Jeep Wrangler owners – called Jeepers, Apple users, Patagonia advocates, and Nike loyalists are not just customers – they are tribes bonded by shared values, identity, and purpose. A purchase is no longer a transaction; it is a statement.
This is not accidental. Brands have become cultural markers, shaping personal narratives and influencing how people define themselves. The shift is so profound that Seth Godin, one of the most influential voices in modern marketing, put it simply: “People don’t buy goods and services. They buy relationships, stories, and magic.”
But what happens when loyalty turns into something stronger? When a preference for one brand transforms into a rejection of others? When a brand becomes a badge of belonging, and stepping outside that tribe feels like a betrayal?
These allegiances are playing out in real time, shaping consumer behaviour in ways brands can no longer ignore.
Why brand tribalism is different today?
Brand loyalty used to be about habit and reliability. Customers would choose a brand because it is familiar, consistent, or available. Today, the choice is more personal. Consumers do not just buy – they pledge allegiance. A choice between Apple and Android is not just about software preferences; it signals a stance on design, privacy, and social status. Wearing Nike over Adidas is not just about comfort; it ties into cultural movements, athlete endorsements, and personal identity. Patagonia customers are not just buying outerwear; they are making a statement about sustainability and corporate ethics.
Social media has turned these preferences into public declarations. A sneaker drop, a product launch, or a rebrand reaches customers and mobilises them. Fans celebrate, critics attack, and the conversation spreads. Algorithms amplify the strongest voices, deepening the divide. Tribal loyalty fuels engagement, turning every campaign into a cultural moment. The more a brand stands for, the more its audience demands from it.
Algorithms and personalisation create echo chambers. Nike loyalists see Nike’s success stories. Apple users encounter articles that affirm their choice. Digital spaces create closed loops where brand loyalty is continuously reinforced, making it harder for consumers to see alternatives as anything but inferior.
This kind of loyalty comes with expectations. Customers expect brands to take a stand, be consistent, and reward their loyalty with more than good products. They want recognition, participation, and alignment with their values. When those expectations are not met, the fallout can be swift.
“A tribe is a group of people connected to one another, connected to a leader, and connected to an idea. For millions of years, human beings have been part of one tribe or another. A group needs only two things to be a tribe: a shared interest and a way to communicate.”
― Seth Godin, Tribes: We Need You to Lead Us
The risks of identity-driven branding
A strong brand tribe can be an asset until it becomes a liability. When loyalty hardens into exclusivity, the same passion that fuels advocacy can turn into a rejection of anything that does not fit the tribe’s values. A brand that leans too heavily into one identity risks alienating those who do not see themselves reflected. A shift in messaging, a misstep in marketing, or a stance on a social issue can trigger a backlash from both within and outside the core audience.
Brands that once prided themselves on standing for something have found themselves trapped by it. A sustainability-focused company that fails to meet rising environmental standards faces harsher scrutiny than a competitor that never claimed to be eco-conscious. A brand built on inclusivity that stumbles on representation gets called out faster than one that never positioned itself that way. The deeper the connection, the stronger the expectation.
The need for agility has never been greater. A campaign that works today may spark controversy tomorrow. Cultural shifts happen in real time, and brand tribes, once unwavering, can fracture just as quickly. Companies that rely too much on one identity risk being boxed in, unable to evolve without backlash. The challenge is not just in building loyalty but in knowing how to navigate it when the landscape changes.
The balance between tribal loyalty and mass appeal
A brand that tries to appeal to everyone risks resonating with no one. However, a brand that caters too narrowly to its most devoted audience can be boxed in, unable to grow beyond its core following. Striking the balance between exclusivity and accessibility separates brands that thrive from those that fade into irrelevance.
Some brands embrace scarcity, making their products harder to get, their communities more selective, and their messaging tailored to a specific worldview. Limited releases, invite-only access, and membership-driven perks reinforce the idea that belonging is earned. Others take the opposite approach, using personalisation at scale to make every customer feel like part of something bigger while still appealing to the masses. Digital platforms allow for segmentation so precisely that a brand can be all things to all people without diluting its identity.
Technology has made it easier to foster brand loyalty without closing the door on broader appeal. AI-driven recommendations ensure customers see content that aligns with their values while still introducing them to new perspectives. Community-led marketing taps into the power of brand evangelists without making the message feel forced. The most successful brands build identity-driven connections while leaving room for evolution, ensuring loyalty does not become a limitation.
Case Study: Duolingo’s Viral Marketing and the “Death of Duo” Campaign
Image Credit: Duolingo’s Instagram
Background
Duolingo’s recent Death of Duo campaign exemplifies how brands can cultivate deep tribal loyalty while maintaining mass appeal. By leveraging humour, cultural references, and interactive storytelling, Duolingo engaged its diverse user base, sparking widespread discussion and reinforcing its unique brand identity.
In February 2025, Duolingo executed one of its boldest marketing stunts yet – the death of its beloved green owl mascot, Duo. The campaign, which humorously announced Duo’s passing, was a continuation of Duolingo’s long-standing strategy of blending pop culture, humour, and user engagement to reinforce brand loyalty. The company framed the stunt as a playful callout to procrastinating users, joking that Duo had “probably died waiting for you to do your lesson.” The campaign quickly went viral, dominating social media feeds and prompting engagement from users, influencers, and even other brands.
Marketing Strategy
Duolingo’s marketing strategy is characterised by its unhinged and playful brand voice, particularly on platforms like TikTok and Instagram. By personifying their mascot, Duo the Owl, in humorous and culturally relevant scenarios, they effectively engage a younger demographic. Their social media team crafts content that aligns with current internet trends and memes, fostering a strong sense of community among users.
The Death of Duo campaign reinforced this approach by incorporating several viral elements:
Social Media Engagement: The brand used humour to drive participation, even jokingly asking users for credit card numbers to sign up for Duolingo Max in Duo’s memory.
Celebrity Tie-Ins: The campaign referenced pop star Dua Lipa, continuing an ongoing joke about Duo’s “obsession” with the singer, leading to responses from fans and media outlets.
Cross-Platform Integration: Duolingo spread the campaign across TikTok, X, and Instagram, creating memes, fake crime scene investigations, and mock obituaries for the owl.
This was not an isolated stunt. Duolingo has consistently used irreverent, culture-driven marketing to cultivate a strong brand identity that resonates with loyal users and casual observers. Previous viral moments include their Duo on Ice April Fools’ campaign and their comedic threats to users who neglect their daily lessons. By maintaining this unpredictable, entertaining approach, Duolingo has turned language learning into a social experience that users actively engage with beyond just using the app.
Outcome
The Death of Duo campaign generated significant viral traction, with users and brands participating in the narrative. The brand’s ability to blend humour with direct engagement helped reinforce its unique identity and kept it at the forefront of digital marketing conversations.
Lessons Learned
Duolingo’s success shows that embracing an unconventional, bold brand personality can foster tribal loyalty without alienating potential users. By engaging with internet culture, incorporating humour, and making users feel part of the joke, Duolingo continues to strike a rare balance – creating an exclusive-feeling brand tribe while still appealing to a broad audience.
Case Study: Agent Provocateur’s Revival Through Niche Focus
Image Credit: Yahoo News UK
Background
Agent Provocateur, the luxury lingerie brand known for its provocative designs, faced financial difficulties and a diluted brand image in the mid-2010s. In 2017, Four Marketing acquired the brand, and this is when Agent Provocateur sought to return to its bold, avant-garde roots.
Strategy
Instead of chasing mass-market appeal, the brand refocused on its core audience – loyal customers who appreciated its distinctive, daring aesthetic. This involved emphasising high-quality craftsmanship, introducing new product lines like swimwear and costume jewellery, and creating marketing campaigns featuring confident, mature celebrities who genuinely love the brand. By staying true to its unique identity, Agent Provocateur strengthened its brand tribe while remaining accessible to new customers seeking luxury and exclusivity.
Outcome
This strategic shift led to a doubling of revenues over three years, with sales projected to reach £50 million by 2025. Agent Provocateur’s resurgence illustrates how a brand can balance deep tribal loyalty with a broader appeal by staying authentic and focusing on its niche market.
Future outlook on brand identity and consumer tribes
Loyalty is no longer a static relationship between brands and consumers. It is fluid, shaped by cultural shifts, digital ecosystems, and the growing expectation that brands stand for something beyond their products. The way we connect has changed. What used to be a simple exchange of goods or services has become a deeper connection based on identity. This connection is always being tested and redefined.
Technology is accelerating this evolution. AI-driven personalisation allows brands to create hyper-individualised experiences, reinforcing consumer identity while adapting in real-time. Web3 and decentralised communities are reshaping ownership, giving consumers a more active role in shaping the brands they support. The rise of digital-first tribes, fueled by platforms like Discord, Reddit, and private membership networks, reduces the need for brands to appeal to the masses.
Yet, with every new opportunity comes risk. As consumer expectations grow, the margin for error shrinks. A brand that aligns too closely with a specific identity may be constrained when the cultural tide shifts. A brand that refuses to engage at all risks irrelevance. The future belongs to those who can move beyond traditional brand loyalty, building adaptable, authentic relationships, and evolving alongside their audience.
A brand is no longer just a product or a service – it is a belief system, a signal, a community. Consumers do not merely buy into brands; they embed them into their identities, defend them in public discourse, and expect them to reflect their evolving values. This shift has given brands unprecedented power, but with it comes volatility.
Loyalty that once lasted decades can now unravel in weeks. A misstep can fracture a tribe, while a well-calibrated move can turn passive buyers into lifelong advocates. The challenge is navigating the tension between deep connection and broad accessibility, between conviction and adaptability.
The future belongs to brands that understand how to cultivate belonging without exclusion, influence without alienation, and loyalty without stagnation. Brands that master this balance will not just thrive in the marketplace – they will redefine the very fabric of consumer culture.
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Once upon a time, toy stores decided what lined the shelves and, in turn, what kids begged their parents for. Not anymore. Social media can turn an obscure plush toy into a global obsession overnight, artificial intelligence is blurring the line between play and companionship, and a new wave of adult collectors is redefining what it means to be a toy brand. The business of play has become an unpredictable, high-stakes competition where the next blockbuster toy could come from anywhere.
Worth over $108 billion, the global toy market isn’t slowing down – it’s evolving. Consumers aren’t just looking for play; they’re looking for connection, creativity, and collectibility. AI-powered toys that respond like real companions, nostalgia-packed reboots, and digital-physical hybrids are shaking up the industry, forcing brands to rethink the blueprint of a best-seller.
Toymakers like LEGO, Mattel, and Hasbro are investing in research and development to stay ahead. China’s manufacturers continue to dominate global production, while Southeast Asia emerges as a critical growth market. With trends evolving at breakneck speed, the question is no longer what toys will sell – but whether the industry can keep up.
The Changing Landscape of Play
Play isn’t what it used to be. Digital integration, evolving consumer expectations, and economic shifts are rewriting the rules of the toy industry. Parents want learning-driven play, kids expect toys to be interactive, and adult collectors are looking for nostalgia with a premium twist. The result? A market where toys aren’t just for fun – they’re tools for education, identity, and connection.
In the US and the UK, STEM and educational toys are becoming increasingly popular as parents prioritise learning through play. Products that incorporate coding, robotics, and problem-solving are seeing sustained demand. According to NPD Group, STEM toy sales in the US increased by 12% in 2023, reflecting a shift toward playthings that provide both engagement and developmental benefits.
Regional Consumer Behaviour Shifts
Asia’s toy market tells a different story.
In China and Japan, AI-driven toys and collectibles dominate the market. Companies like Tencent and Bandai Namco are integrating artificial intelligence into toys, creating interactive play experiences that appeal to both children and collectors. Smart robots, augmented reality-enhanced games, and anime-inspired figurines are key drivers of growth.
In India and Southeast Asia, a rising middle class is reshaping the toy market. Parents are spending more on aspirational and interactive toys, while kids gravitate toward licensed character merchandise and gaming tie-ins. In Indonesia, the Philippines, and Vietnam, affordability still matters, but innovation is the real differentiator.
For toymakers, success now hinges on understanding how culture, technology, and demographics intersect. A strategy that works in China may flop in Europe, while trends that take off in the US might struggle in Southeast Asia. The challenge isn’t just innovation – it’s adaptation.
Tech-Infused Toys Are Winning Big
AI-driven toys aren’t the future – they’re already here. From machine-learning-powered companions to AR-enhanced board games, brands are embedding intelligence into play. With the AI toy market set to grow at 5.8% CAGR through 2032, the industry isn’t just selling toys—it’s building interactive, evolving experiences.
Image credit: Cozmo
In the US and UK, AI-powered toys like Cozmo and Osmo have redefined interactive learning. Parents looking for more than screen time are embracing smart toys that adapt to their children’s behaviour, respond to voice commands, and integrate with tablets. As demand grows, companies are pushing the boundaries – introducing AI companions that recognise emotions, refine speech patterns, and even mimic human-like interactions.
Beyond AI, gamification is increasingly influencing toy design. The runaway success of Roblox and Minecraft has driven demand for physical collectibles linked to digital worlds. Companies have responded with action figures, buildable sets, and interactive board games that mimic the mechanics of their online counterparts. LEGO’s partnership with Minecraft and Hasbro’s integration of video game IP into its toy lines illustrate how brands are leveraging gaming culture to drive toy sales.
Southeast Asia has embraced a hybrid play model that combines digital and physical engagement. In Indonesia and Thailand, interactive toys that connect to mobile apps, feature augmented reality components, or incorporate motion-tracking technology are gaining traction. This preference aligns with the region’s broader digital adoption trends, where mobile gaming and social media heavily influence consumer behaviour.
For toy companies, innovation comes with trade-offs. Smart toys promise engagement, but privacy concerns linger as parents question how much data these products collect. Cost is another barrier – AI-powered toys often come with premium price tags, making them inaccessible in price-sensitive markets. Despite these hurdles, the shift toward intelligent play is no longer a question of if but how fast it will reshape the industry.
The Nostalgia Effect and the Rebirth of Classic Play
Familiar brands and characters from the past are making a comeback, fueled by a wave of nostalgia-driven consumer demand. Millennials and Gen Z, now parents themselves, are revisiting the toys of their childhood, creating a lucrative market for reissued classics. This trend has translated into strong sales for legacy brands, with LEGO reporting a 13 percent increase in revenue in the first half of 2024 as collectors and new generations embrace its timeless appeal.
The revival is not limited to building blocks. Pokémon, a franchise that has remained a cultural force for nearly three decades, continues to generate billions in merchandise sales, fueled by video game releases, trading cards, and animated series. The brand’s ability to reinvent itself while maintaining core elements from the 1990s has made it a model for sustained success in the nostalgia economy.
Mattel is leading the nostalgia boom, with its classic Barbie relaunch driving a 15 percent surge in shares as both collectors and new audiences embrace retro-inspired designs. The company is applying the same strategy to other legacy brands, reviving Masters of the Universe and Hot Wheels to appeal to the generation that grew up with them.
The trend is not confined to Western markets. In China and the Philippines, anime-inspired toys are experiencing a surge in demand, blending nostalgia with contemporary culture. Figures and collectibles from franchises like One Piece, Naruto, and Demon Slayer have become staples in the growing adult collector market, as well as among younger fans introduced to these series through streaming platforms. Japanese manufacturers such as Bandai Namco are expanding their presence in Southeast Asia, recognising the strong appetite for licensed merchandise tied to classic anime and gaming properties.
Nostalgia may be a powerful sales driver, but it’s not a guaranteed long-term strategy. Toy companies are walking a fine line between reviving past hits and keeping them relevant for new audiences. Limited-edition releases, premium collector sets, and digital tie-ins have kept engagement high, but sustaining demand beyond the initial hype is the real challenge. Longevity will depend on brands treating nostalgia as a launchpad for innovation, not a safety net for sales.
The Rise of the Kidult Toy Market
Once dismissed as a niche segment, adult toy collectors have become one of the fastest-growing consumer groups in the industry. The so-called “kidult” market – comprising Millennials and Gen Z buyers – now accounts for 17.3 percent of total toy sales, totaling $6.7 billion in 2023. This group is drawn to high-end collectibles, action figures, and designer toys, driving demand for premium releases and limited-edition runs.
Toy companies are no longer designing just for kids. LEGO’s “Adults Welcome” line, which includes intricate builds inspired by art, architecture, and pop culture, has become a major revenue driver, proving nostalgia isn’t the only force at play. Brands are tapping into fandom culture, gaming, and premium craftsmanship to cater to a generation that sees toys as collectibles, investments, and expressions of identity.
Key Market Drivers
In the US and UK, adult collectors are gravitating toward franchises with decades-long legacies. Star Wars, Marvel, and DC Comics remain dominant, with high-end action figures, replica weapons, and limited-edition statues driving a significant portion of sales. Hasbro’s Black Series and Marvel Legends lines, along with premium models from Hot Toys and Sideshow Collectibles, cater specifically to this market.
Anime culture has transformed China and Japan into powerhouses of the global collectibles market. Gundam models, capsule toys, and figurines from series like Demon Slayer, One Piece, and Mobile Suit Gundam are more than just fan memorabilia – they are billion-dollar businesses. Bandai Namco has perfected the art of scarcity, releasing high-value limited editions that disappear from shelves within minutes. Meanwhile, Tokyo’s Akihabara district and China’s expanding anime-themed retail hubs have taken these collectibles from niche subcultures to mainstream must-haves.
K-pop and gaming culture are fueling the growth of the adult toy market in Indonesia and the Philippines. Limited-edition BTS figurines, NCT-inspired dolls, and League of Legends character statues have become status symbols among fans, selling out as soon as they launch. The booming esports scene is further driving demand for high-end gaming merchandise, from custom controllers to exclusive collectibles tied to top franchises.
Industry Response
Toy companies are racing to meet the demand of deep-pocketed adult collectors. Bandai Namco has doubled down on premium anime figurines, crafting meticulously detailed, limited-edition statues that fans snap up instantly. Meanwhile, Mattel and Hasbro are reviving 1980s and 1990s classics, upgrading them with better materials and exclusive accessories to appeal to buyers who want nostalgia without compromise.
The rise of the kidult market has forced toy companies to rethink their core audience. While younger buyers still expect affordability, adult collectors are willing to pay premium prices for exclusivity. With some spending thousands on rare or custom-made pieces, the line between toys and luxury collectibles is blurring, reshaping the economics of play.
Sustainability and the Ethical Consumer Push
Sustainability has gone from a talking point to a business imperative. With growing concerns over plastic waste, consumers are demanding greener alternatives, pushing brands to rethink how toys are made, packaged, and distributed. In Japan, Singapore, and Europe, biodegradable and plastic-free options are gaining traction, forcing manufacturers to align with rising environmental expectations beyond just product design.
In the UK, affordability is shaping the sustainability trend in unexpected ways. Parents are fueling demand for “pocket money” toys under £10, balancing eco-conscious choices with budget constraints. While this shift has encouraged some manufacturers to develop small, sustainable items, it has also kept cheaper plastic-based toys on store shelves, highlighting the cost challenge of going green.
Marketing Challenges
The push for sustainable toys comes with a cost – literally. Many eco-friendly options are priced higher, limiting accessibility for budget-conscious consumers. While wealthier households in developed markets may embrace sustainability, most parents still choose affordability over ethics. For toy brands, the real challenge isn’t just making greener products, but doing so at a price families can afford.
Skepticism is another roadblock. As sustainability becomes a selling point, brands face increasing scrutiny over greenwashing – promoting eco-friendly claims without real substance. Nowhere is this more evident than in Europe, where regulators are cracking down on misleading eco-labels. To earn consumer trust, companies must go beyond buzzwords, proving their environmental commitments with transparent sourcing, independent certifications, and tangible action.
Challenges aside, sustainability is no longer a trend – it’s a transformation. Toy companies are testing recycled plastics, bio-based materials, and circular economy models, but the real question is whether green toys will remain a niche or become the new industry standard.
Asia’s Influence on Global Toy Trends
Asia isn’t just the world’s toy factory – it’s shaping what kids and collectors want to buy. China leads in production, Japan dominates collectibles, and India is rising as a manufacturing force, ensuring the region’s influence extends far beyond supply chains.
China produces 70 percent of the world’s toys, but its influence doesn’t stop at manufacturing. Homegrown franchises like Honor of Kings are gaining traction beyond Chinese borders, showing that China isn’t just making toys – it’s shaping global trends.
Japan’s role in the toy industry has been driven by its influence on storytelling and collector culture. With anime remaining one of the country’s most successful cultural exports, franchises such as Demon Slayer and One Piece have become global bestsellers, generating billions in toy-related revenue. Japanese manufacturers, particularly Bandai Namco, have built an industry around high-value collectibles, catering to a growing global market of adult fans who see figures, model kits, and capsule toys as investments rather than simple playthings. The company’s expansion into international markets has reinforced Japan’s status as a leader in character-driven collectibles.
India is carving out its own space in the toy industry – not as a collector’s hub, but as a manufacturing force. Government incentives are fueling domestic production, allowing local brands to compete in the mass-market segment. The shift toward self-sufficiency is not just about serving Indian consumers; it’s also creating export opportunities for countries seeking alternatives to Chinese manufacturing.
Asia’s toy industry is no longer just about production – it’s shaping what the world plays with. Homegrown franchises are going global, anime-driven merchandising is thriving, and new manufacturing hubs are changing the industry’s balance of power.
The Wild Cards That Could Shape the Next Craze
The next breakout toy won’t be decided by boardroom strategists – it’ll be made viral overnight. Social media, entertainment tie-ins, and influencers now shape demand, leaving toymakers scrambling to keep up. In a world where trends can disappear as quickly as they explode, agility is the only way to stay relevant.
A viral video can turn an overlooked toy into the next global must-have. TikTok and Instagram have made sensations out of fidget toys, collectible mini brands, and unboxing sets, with demand surging in hours. But the real shift isn’t just in what’s trending—it’s who controls the trend. Today, consumers, not toy companies, dictate demand.
Hollywood isn’t just creating movies and shows – it’s fueling the toy industry. Blockbuster releases like Captain America: Brave New World and The Fantastic Four: First Steps are expected to drive massive toy sales in 2025, as brands tap into built-in fan bases (Licensing International, 2024). But the real game-changer is streaming. Binge-watching keeps franchises relevant long after their theatrical run, turning series like Stranger Things, The Mandalorian, and Wednesday into merchandising goldmines.
Influencers have become kingmakers in the toy industry, turning niche products into overnight sellouts. YouTube personalities and TikTok creators now dictate demand, with exclusive toy collaborations disappearing from shelves within hours. But today’s consumers – especially parents – are savvier than ever. Authenticity matters, and brands that treat influencers as scripted salespeople risk losing trust.
The next toy craze won’t be meticulously planned – it’ll erupt online when no one sees it coming. In a market where trends explode overnight, the brands that thrive will be the ones that react fast, fuel digital momentum, and secure key partnerships before the hype disappears.
Most Popular Toys Around the World (2025)
Country
Most Popular Toy
Notes
United States
STEM and educational toys (Osmo, LEGO robotics)
Parents prioritise learning-based toys, driving demand for coding and robotics kits.
United Kingdom
Pocket money toys and retro collectibles (Mini Brands, Pokémon cards)
Small, affordable toys under £10 are trending, along with nostalgia-driven collectibles.
China
AI-driven smart toys and Honor of Kings figures
AI-powered companions and gaming-inspired collectibles dominate the market.
India
Educational and aspirational toys (building sets, locally made interactive toys)
Rising middle-class demand for innovative, skill-building toys.
Indonesia
K-pop and gaming collectibles (BTS figurines, League of Legends statues)
The intersection of fandom and collectibles drives strong sales.
Philippines
Anime-inspired figures and gaming toys (One Piece, Funko Pop)
Strong influence from anime and gaming culture, with high demand for imported merchandise.
Growing preference for eco-friendly materials and multifunctional designs.
Japan
Gundam models and capsule toys
The adult collector market continues to expand, fueled by anime franchises.
Thailand
Augmented reality playsets and interactive board games
Digital-meets-physical toys are thriving as mobile gaming influences traditional play.
Vietnam
Affordable interactive toys
A growing middle class is driving demand for interactive yet cost-effective play experiences.
Germany
Playmobil and STEM toys
Playmobil remains a favorite, with an increasing focus on educational themes.
France
Classic wooden toys and Sophie la Girafe
Parents favor high-quality, traditional playthings with an emphasis on safety and sustainability.
Spain
Scalextric slot car racing sets
Classic racing sets remain popular among hobbyists and younger audiences.
Italy
Skydancers and fashion dolls
A resurgence of nostalgic toy brands alongside new interactive dolls.
Brazil
Barbie and superhero action figures
Traditional toy categories remain strong, with a growing interest in branded character toys.
Argentina
PlayStation 4 and affordable gaming accessories
Economic constraints drive demand for previous-generation consoles and budget-friendly gaming peripherals.
Chile
LEGO and STEM-based play kits
A push for educational toys mirrors global trends toward learning-focused play.
Colombia
Funko Pop and collectible figurines
The adult collector market is growing, driven by pop culture fandoms.
Australia
LEGO and pop culture board games
Board games inspired by movies, TV series, and video games are gaining popularity.
Malaysia
L.O.L. Surprise! Dolls and smart toys
The combination of unboxing trends and tech-infused play drives sales.
What Comes Next for Toy Brands
The most successful toy brands will be those that balance innovation with familiarity. While AI, augmented reality, and smart play are reshaping the market, the demand for tactile, imaginative, and nostalgia-driven toys isn’t fading. The companies that win the future won’t just embrace technology – they’ll weave it into storytelling, blend education with entertainment, and make sustainability accessible rather than aspirational.
Toy brands can no longer take a one-size-fits-all approach. In the US and China, AI-powered and tech-driven toys are poised to dominate sales, while in Europe and Southeast Asia, eco-friendly and educational toys are gaining momentum as parents prioritise sustainability and developmental value. Companies that fail to adapt to these shifting preferences risk fading into irrelevance.
Sustainability is no longer optional – it’s an industry expectation. As consumers become more conscious of plastic waste and ethical production, brands investing in biodegradable materials, modular designs, and circular economy initiatives will gain long-term trust. What was once a niche selling point is now a competitive necessity.
For toy brands, the real challenge isn’t just innovation – it’s keeping up. Trends can explode overnight, social media now dictates demand, and licensing deals can make or break annual sales. According to industry analyst Susan Murphy, “The future of the toy industry lies in its ability to innovate while staying true to the fundamental principles of play. Companies that can adapt to changing consumer behaviours without losing sight of the joy that toys bring will lead the next big craze.
The brands that thrive won’t just chase trends – they’ll anticipate them. AI-powered companions, nostalgia-driven revivals, and sustainability-led innovation will define the industry’s next era. But the real power will belong to the toymakers who don’t just track what’s trending – but understand why it matters.
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In early 2022, Panera Bread introduced its Unlimited Sip Club, a subscription service granting customers unlimited self-serve beverages for a monthly fee. It was among the first major fast-food chains to test a subscription-based model, shifting from traditional loyalty programs to a strategy aimed at securing recurring revenue and increasing customer visits.
Subscription models are becoming a mainstay as quick-service restaurants (QSRs) experiment with new ways to increase customer loyalty and spending. A 2025 report by the Food Institute found that 76% of restaurant owners plan to integrate gamification into their loyalty programs, signalling a move away from static rewards toward interactive engagement. The goal: turning casual customers into repeat visitors who interact with brand platforms daily.
The challenge now is whether consumers see enough long-term value in fast-food subscriptions to maintain their commitment – and whether brands can sustain profitability without diluting the appeal. As competition grows, success will hinge on balancing affordability, exclusivity, and genuine savings that justify a recurring fee.
The Consumer Shift Driving This Trend
Fast food has traditionally thrived on consistency – standardised meals, rapid service, and predictable experiences. But consumer expectations are shifting. Today’s diners seek more than just convenience; they crave value, exclusivity, and interactive experiences. This shift is fuelling the rise of subscription-based dining and gamified loyalty programs, turning occasional transactions into habitual brand engagements.
Subscription models have reshaped industries from entertainment to retail, and now they’re making their mark on fast food. A 2024 PYMNTS report found that 45% of US consumers subscribe to at least one food or beverage service, a sharp rise from 36% in 2020. Meal kits and coffee subscriptions paved the way, demonstrating the viability of prepaid dining experiences. Now, QSRs are leveraging similar strategies to lock in repeat visits and drive incremental revenue.
Beyond subscriptions, fast-food chains are integrating gamification to deepen customer engagement. Interactive loyalty programs appeal to psychological triggers – competition, achievement, and status – encouraging repeat visits. Rather than simply buying a meal, customers now earn points, unlock exclusive perks, and advance through membership tiers. A 2023 McKinsey report found that well-designed gamified programs can increase customer spending by up to 40%, making them a lucrative tool for QSRs looking to sustain long-term loyalty.
Younger generations, in particular, are embracing these changes. A recent survey found that millennials and Gen Z are 35% more likely than older demographics to engage with gamified rewards. The demand for digital-first loyalty experiences is fueling innovation worldwide. In Japan, McDonald’s revamped its MyMcDonald’s Rewards with AI-driven personalisation, offering points multipliers during off-peak hours to encourage visits. Similarly, in the U.K., Pret A Manger has expanded its subscription model to include personalised incentives based on purchase history. The strategy is clear: engagement must go beyond discounts – it must create a habitual relationship between brand and customer.
There’s also a shift away from traditional discounts in favour of experience-driven perks. A 2024 Kantar study found that 60% of consumers now prioritise rewards that offer exclusivity over basic price cuts. Brands are adapting: Taco Bell’s Fire Tier Rewards unlock early access to menu innovations, while Domino’s Surprise Frees program randomly gifts free food to loyal customers, fostering excitement rather than predictable point redemptions. The shift signals that loyalty is no longer just about savings – it’s about status, engagement, and emotional connection.
The takeaway? Consumers no longer just want rewards – they want engagement. Subscription models and gamified loyalty programs are transforming routine purchases into ongoing brand relationships. As more fast-food brands invest in interactive engagement, the traditional playbook for customer retention is being rewritten. The next challenge? Ensuring these programs provide lasting value rather than becoming another short-lived marketing experiment.
How Fast Food Chains Are Adopting Gamification & Subscriptions
Fast-food chains are no longer simply rewarding repeat customers – they’re restructuring their entire loyalty approach. Subscription services and gamified rewards are turning once-sporadic transactions into habitual spending, offering brands a more reliable revenue stream. While traditional point-based programs still exist, more restaurants are shifting to systems that keep customers engaged daily, whether through app-based perks, tiered memberships, or monthly meal passes.
Pret A Manger, for example, has aggressively expanded its subscription model, first in the UK and now globally. Its “Club Pret” program, offering unlimited barista-made drinks for a fixed monthly fee, drove a 22% increase in global sales in 2023. The company reports that subscribers visit five times more frequently than non-members, significantly increasing food purchases alongside beverages. Similarly, McDonald’s Japan has rolled out digital-exclusive deals through its loyalty app, leveraging gamification to incentivise repeat visits.
While these models generate steady income, they also require constant fine-tuning. Subscription fatigue is real, and consumers are quick to cancel if they don’t see continuous value. Brands must balance pricing, perks, and exclusivity to keep customers engaged without feeling locked into a program that doesn’t evolve. Those that succeed – by offering tangible savings, personalised deals, and interactive rewards – are rewriting the rules of fast-food loyalty.
Luckin Coffee’s Play-to-Win Strategy
Image credit: Luckin Coffee
In China, Luckin Coffee has turned customer retention into a game. Unlike traditional point-based rewards, its app features dynamic challenges that encourage repeat visits. Customers who hit spending milestones unlock tiered discounts and free drinks, creating a loyalty ecosystem that goes beyond transactional incentives. The higher the engagement, the more exclusive the rewards – an approach that has cemented Luckin’s digital dominance in China’s competitive coffee market.
Luckin’s approach has yielded significant results. Its 2023 earnings report revealed that over 75% of transactions now originate through its app, demonstrating the effectiveness of its loyalty system. Customers engage with the platform an average of 21 times per month, far surpassing industry benchmarks. By integrating gamification into its core business model, Luckin has transformed occasional buyers into habitual customers, proving that digital-first strategies can redefine fast-food loyalty.
Burger King’s Subscription Bet in Europe
In Germany, Burger King is testing a different kind of subscription – one that locks in discounts rather than specific products. The chain’s King Deals program, launched in 2023, allows app users to pay a small monthly fee in exchange for access to exclusive offers, including half-price meals and premium add-ons. The goal is to increase repeat visits while giving customers a reason to keep the app on their phones.
Early reports suggest that the strategy is working. Burger King Germany has seen a 22% increase in repeat visits from subscribers compared to non-members, and the company is now considering expanding the program to other European markets.
Shifting From Discounts to Engagement
Subscription-based dining and gamified loyalty programs aren’t just about offering discounts – they’re about changing how consumers interact with fast-food brands. Whether it’s Panera making beverage purchases a habit, Luckin Coffee turning transactions into a game, or Burger King incentivising app engagement, QSRs are redefining customer relationships.
Why QSRs Are Betting on Gamified Loyalty
Fast-food chains are increasingly adopting subscription models and gamified loyalty programs to enhance customer engagement and secure predictable revenue streams. These strategies not only foster repeat business but also provide a competitive edge in a crowded marketplace.
Predictable Revenue Through Subscriptions
For QSRs, subscriptions provide a buffer against industry volatility, replacing sporadic purchases with predictable, recurring income. Pret A Manger’s “Club Pret” subscription, which grants members up to five barista-made drinks per day for a fixed monthly fee, has transformed the company’s revenue model. The initiative played a key role in pushing Pret’s global sales past £1 billion in 2023, marking the first time in its history the company reached this milestone.
Other brands are experimenting with subscription-like promotions to drive habitual spending. In October 2023, Domino’s introduced its “Emergency Pizza” initiative, allowing loyalty members to redeem a free pizza after making a qualifying purchase. The result was a surge in sales and two million new loyalty sign-ups, reinforcing the effectiveness of structured, value-driven offers in retaining customers.
Enhanced Engagement Through Gamification
Gamified loyalty programs tap into behavioural psychology, using incentives, challenges, and exclusive content to drive repeat visits. McDonald’s Australia’s “MyMacca’s Rewards” program rewards customers with points per dollar spent, which can be redeemed for menu items – a model that has significantly increased app engagement. Beyond simple reward systems, leading QSRs are now incorporating dynamic challenges and real-time achievements, creating a sense of urgency and exclusivity that encourages repeat interactions.
Gamification is proving to be more than a gimmick – it translates directly into higher spending. A Mastercard report found that brands leveraging interactive loyalty mechanics saw a 60% spike in app engagement and a sixfold increase in purchase frequency within the first year of implementation. These figures highlight the growing role of digital ecosystems in fostering long-term brand loyalty.
Social Status Rewards and Exclusive Access
Beyond financial rewards, status-based loyalty structures add another layer of appeal. Customers are often willing to engage more deeply when programs offer exclusive perks tied to higher-tier status. Pizza Express has capitalised on this psychology with a loyalty program structured around bronze, silver, and gold tiers, where members unlock escalating benefits over time. The approach has attracted 2.7 million sign-ups in two years, demonstrating that tiered rewards can drive long-term engagement more effectively than one-time discounts.
Image credit: Pizza Express
Cross-brand collaborations are also enhancing the value proposition of loyalty subscriptions. Walmart+ has partnered with Burger King to provide members with discounts on digital orders and periodic free items, including a quarterly free Whopper. These partnerships add tangible benefits to subscription models, reinforcing brand value while leveraging existing customer bases.
The Numbers Behind Loyalty Innovation
The impact of these strategies is clear. Pret A Manger’s subscription service contributed to a significant jump in global system sales, reaching £1.1 billion while underlying profits rose 12% to £166 million in 2023. Similarly, Domino’s leveraged gamified loyalty to reverse declining sales, expanding its rewards program by an additional two million members in just a few months.
Image credit: Pret A Manger
As the fast-food landscape becomes increasingly competitive, QSRs that invest in loyalty innovation will have a distinct edge. Whether through gamification, subscription models, or status-based incentives, the brands that can turn customer interactions into habit-forming experiences will define the future of fast-food engagement.
The Risks and Challenges of Subscription-Based Fast Food
As more QSRs experiment with these models, potential pitfalls are becoming apparent. From subscription fatigue and economic pressure to logistical hurdles and consumer backlash, brands face mounting challenges in retaining long-term loyalty and sustaining profitability.
Subscription Fatigue
As subscriptions extend beyond streaming and retail into fast food, many consumers are reaching their limit. Households already manage monthly fees for entertainment, groceries, fitness apps, and meal kits – and they’re cutting back. A recent study found that 42% of US consumers feel overwhelmed by the number of subscriptions they manage, with many actively cancelling non-essential services.
This trend isn’t confined to Western markets. In South Korea, a Nielsen study reported a 28% drop in new subscription sign-ups across industries, including food and beverage. Consumers are becoming more selective, gravitating toward services that offer flexibility, exclusive benefits, and genuine savings. For QSRs, this means that simply offering a discount isn’t enough – brands must differentiate their programs through value-driven perks and long-term incentives or risk being abandoned.
Economic Pressures
Fast-food subscriptions thrive in strong economic conditions, but inflation and consumer spending cutbacks are testing their durability. While some customers justify paying upfront for daily meals or drinks, others are questioning the necessity. A recent PwC consumer sentiment report found that 60% of global consumers are actively reducing discretionary spending, with dining out and food subscriptions among the first to be reevaluated.
In Europe, where inflation has driven up food prices, subscription-based meal plans are under strain. A Kantar study showed that 35% of UK consumers have cut back on restaurant subscriptions and food delivery services, shifting toward home-cooked meals instead. Unless fast-food brands can demonstrate tangible cost savings or exclusive access to high-value perks, subscriptions risk becoming expendable luxuries during economic downturns.
The Operational Strain of Managing Demand
Beyond consumer concerns, fast-food chains must grapple with the logistical complexities of recurring transactions. Unlike one-time promotions, subscriptions guarantee a steady flow of orders, requiring precise forecasting for inventory, staffing, and fulfilment.
Japan’s Mos Burger learned this the hard way when it piloted a burger subscription model. Demand exceeded projections, leading to ingredient shortages and strained operations. The company had to restrict redemptions to non-peak hours to prevent service disruptions. This underscores a fundamental risk: if not carefully managed, subscriptions can overload supply chains, increase waste, and frustrate both staff and customers.
Technology is another critical hurdle. Seamless integration of subscriptions into apps and point-of-sale systems is essential, yet many brands underestimate the investment required. In India, a major fast-food chain faced backlash when its digital loyalty program crashed under heavy demand, blocking paid subscribers from redeeming offers. The PR fallout was immediate, reinforcing the importance of scalable, reliable tech infrastructure before launching subscription models at full scale.
Consumer Backlash
When customers feel they’re not getting enough value, they cancel – fast. A 2023 PYMNTS report found that 49% of subscription users drop a service within six months if they don’t perceive consistent benefits.
QSRs are particularly vulnerable to churn. Unlike streaming platforms, where exclusive content keeps subscribers engaged, fast-food loyalty hinges on repeat consumption. If consumers hit unexpected limits – whether through redemption restrictions, menu exclusions, or underwhelming savings – they abandon the program entirely.
In France, a leading coffee chain faced widespread backlash when customers discovered that its “unlimited drink subscription” excluded premium beverages – a restriction buried in fine print. Social media complaints erupted overnight, leading to a 32% drop in renewals within three months. The company was forced to revamp its offer to rebuild trust, but the damage had already dented its reputation.
For fast-food brands, subscription success hinges on transparency, trust, and long-term value. Consumers are willing to commit to recurring spending – but only if the benefits outweigh the cost. In an increasingly subscription-saturated market, brands that overpromise and underdeliver won’t just lose subscribers – they’ll lose credibility.
The Future of Fast-Food Loyalty Programs
Fast-food loyalty programs are at a crossroads. As competition intensifies, brands are moving beyond traditional discounts and punch cards, leveraging advanced technologies and hyper-personalised incentives to deepen customer engagement. However, the future of these programs will depend on whether they provide real, lasting value – or simply add to the growing fatigue of subscription-based services.
Emerging Innovations: AI, Gamification, and Blockchain
Artificial intelligence (AI) is reshaping how QSRs understand and engage with customers. By analyzing purchasing patterns and behavioural data, AI-driven loyalty programs can offer customised promotions, dynamic pricing, and predictive ordering. For instance, some brands are experimenting with real-time menu suggestions based on individual preferences, driving higher spending and deeper brand affinity.
Gamification is also evolving. Loyalty programs are incorporating augmented reality (AR) and blockchain technology to create more immersive and secure experiences. AR-driven campaigns allow customers to unlock exclusive deals through interactive digital experiences, while blockchain ensures transparent and fraud-proof reward transactions. These innovations move beyond transactional loyalty, aiming to foster a stronger emotional connection between brands and consumers.
Consumer Skepticism and Ethical Hurdles
Despite technological advancements, loyalty programs face growing consumer scepticism. The increasing reliance on data collection and AI-driven personalisation raises privacy concerns, prompting regulators to scrutinise how brands gather, store, and use consumer information. If customers feel they are being manipulated into spending more rather than receiving genuine benefits, backlash could follow.
Subscription-based models, once seen as a predictable revenue stream, are also losing some appeal. A 2024 industry survey found that consumers now manage an average of 5 to 7 active subscriptions, with many actively reducing non-essential commitments. The question for QSRs is whether fast-food subscriptions provide enough tangible value to justify a recurring financial commitment – or whether they will become another short-lived marketing trend.
Striking the Right Balance
The future of fast-food loyalty programs hinges on execution. Brands that focus purely on data-driven engagement without offering meaningful value risk losing customer trust. To succeed, QSRs must ensure that loyalty initiatives feel rewarding rather than obligatory, with clear, flexible benefits that align with consumer expectations.
Transparency in data usage, personalised but non-intrusive incentives, and rewards that genuinely enhance the dining experience will define the next generation of loyalty programs. As the industry evolves, brands that prioritise trust, flexibility, and customer-first innovation will lead – while those that overpromise and underdeliver risk being left behind.
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Food prices in Japan have surged since 2022, shifting consumer habits in ways that brands cannot afford to ignore. A nationwide study by our sister company, CMG Inc., reveals the extent of this shift, showing how inflation influences where, what, and how often people buy groceries.
Japanese consumers have long prioritised quality and brand loyalty, often paying a premium for fresh, locally sourced ingredients. However, inflation is shifting these behaviours. Our study shows that more shoppers seek discounts, adjust grocery lists, and change stores to cope with rising costs.
Our study of Japanese consumers aged 20 to 69 found that 90% feel the strain of rising food costs, with 70% experiencing it intensely. Prices for essential staples like rice, leafy greens, and eggs have surged, pushing shoppers toward lower-cost alternatives, bulk buying, and store-switching strategies.
Households are adjusting by choosing cheaper alternatives, relying on discounts, and carefully planning purchases to minimise costs. The findings reveal how inflation shapes the Japanese food market today and how brands must adapt to meet shifting consumer priorities.
Japanese consumers feel the weight of rising food prices
Inflation is hitting middle-aged consumers the hardest. Women and those aged 40 to 60 report the most strain as they juggle rising grocery bills alongside housing, childcare, and utility costs.
Rice tops the list, with three-quarters of respondents saying its cost has risen. Leafy vegetables, eggs, and fruits are among the most frequently cited items experiencing price hikes. The rising costs of these essentials are pushing consumers to reconsider their grocery lists, with many shifting to more affordable alternatives or cutting back on certain items altogether.
Consumer sentiment suggests inflation is not just a financial strain but an ongoing source of anxiety. Many households are adjusting broader spending patterns, cutting back on dining out and non-essential purchases as they prioritise their grocery budgets. This heightened sense of caution underscores the urgency for brands to meet evolving needs with adaptable solutions.
Implications for Brands
As inflation shapes consumer habits, brands operating in the food industry must rethink their strategies. Price sensitivity is now a dominant force in purchasing decisions, making affordability and value essential selling points. Companies that rely on staple food products may need to introduce smaller pack sizes, bulk discounts, or subscription-based models to maintain customer loyalty.
This shift presents an opportunity for brands that offer alternatives to high-cost staples. The surge in demand for lower-cost items like bean sprouts and tofu suggests that consumers are willing to make substitutions. Positioning these products as smart, affordable choices through targeted marketing and in-store promotions could help brands capture market share.
Retailers and food manufacturers must also recognise that Japanese consumers actively seek ways to save. Loyalty programs, digital coupons, and promotional bundles could play a more significant role in purchasing decisions as shoppers become more selective about where they spend their money. Companies that can balance pricing strategies with perceived value will be best positioned to navigate the evolving food market in Japan.
How Consumers Are Changing Their Shopping Habits
As prices climb, Japanese consumers are becoming more strategic. Nearly 30% are actively hunting for clearance deals, while an equal share is switching supermarkets in search of lower prices. Discount chains and bulk retailers see increased foot traffic as shoppers shift from premium stores to budget-friendly alternatives.
Beyond price-driven decisions, shoppers are becoming more disciplined in their purchasing habits. Many are researching deals in advance, planning their shopping lists, and buying only what is necessary. This shift suggests that impulse buying is declining, making it harder for brands to capture spontaneous purchases. Instead, consumers approach grocery shopping with a calculated mindset, weighing every purchase against cost and necessity.
Digital engagement is also playing an increasing role in consumer decisions. More shoppers use online price comparison tools, retailer apps, and e-commerce platforms to track discounts and find the best deals. Brands that integrate their promotions seamlessly into these digital channels will have a greater chance of influencing purchase decisions early on.
However, in-store promotions and point-based rewards in Japan remain highly influential, offering brands an alternative way to engage cost-conscious consumers. Brands that integrate their promotions seamlessly into digital and physical retail channels will have a greater chance of influencing purchase decisions before consumers even enter a store.
Implications for Brands
With price-conscious behaviour shaping the market, brands must adapt their pricing and promotional strategies. Offering flexible discounts and personalised promotions could help retain customers who might otherwise trade down to lower-cost alternatives. Brands traditionally relying on premium positioning may need to consider budget-friendly variations or value packs to stay competitive.
A prime example of a brand adapting to shifting consumer behaviour is Nissin Foods, the maker of Cup Noodles. The company has introduced new flavours and healthier options for health-conscious consumers while maintaining affordability. Its focus on sustainability through eco-friendly packaging and responsible sourcing has also helped sustain consumer loyalty despite economic challenges.
Retailers also need to rethink in-store and digital promotions. Placing high-demand items in visible areas, bundling products at competitive prices, and integrating discount offers into mobile shopping apps can help maintain customer engagement. As shoppers become more deliberate, brands must ensure they are part of the decision-making process before consumers reach the checkout counter.
What are people buying less and more often?
Rice, snacks, and cabbage are the top three foods that people buy less of due to price increases.
Rising prices are forcing consumers to rethink where they shop and what they buy. The survey reveals a clear pattern – high-cost staples are being purchased less frequently, while affordable alternatives are gaining traction. Since 2021, Japan has experienced a significant surge in rice prices. In 2023, the average selling price for a 60-kilogram bag of rice was approximately ¥15,310 (about $139 USD). By January 2025, this price escalated to ¥25,927, a 69% increase from the previous year. This equates to roughly $171 USD.
At the same time, lower-cost and versatile food items are seeing an uptick in sales. Bean sprouts and tofu, known for their affordability and adaptability in Japanese cuisine, are among the top foods people buy more often. Bread, another relatively inexpensive staple, has also gained popularity. The trend suggests consumers prioritise foods that offer more servings, opting for ingredients that stretch further and provide better value.
Implications for Brands
Understanding these shifts is critical for food manufacturers and retailers. Brands in high-cost categories need to rethink how they position their products. Offering smaller portion sizes, value packs, or price promotions could help retain consumers considering cutting back. For brands selling products that are growing in demand, this is a moment to strengthen their market position. Highlighting the versatility, nutritional benefits, and affordability of products like tofu and bean sprouts can reinforce their appeal in price-sensitive times.
Retailers should also adapt by ensuring budget-friendly items are well-stocked and prominently displayed. Promotional strategies should focus on cost-effective meal solutions, helping consumers maximise their grocery budgets. As inflation influences purchasing decisions, brands that align their offerings with consumer priorities will be best positioned to maintain loyalty and sales.
How Japan’s food inflation compares to the West
Rice isn’t just a staple in Japan—it’s a cultural cornerstone and an economic indicator. Unlike many Western nations where grains are heavily imported, Japan produces most of its rice domestically, meaning price fluctuations reflect deeper economic shifts. This inflation trend mirrors similar surges in other staple foods worldwide, such as wheat in the U.S. and soybeans in China.
Food prices are rising worldwide, but the impact varies from country to country. While Japan is seeing sharp increases in staples like rice, vegetables, and eggs, the US and the UK markets are grappling with their inflation-driven shifts in consumer behaviour. In Western markets, dairy products, meat, and processed foods have been among the most affected categories, driving consumers toward discount grocery chains, bulk buying, and private-label alternatives.
In the US, shoppers increasingly turn to wholesale retailers and discount supermarkets to cut costs. Many are switching from brand-name products to store-brand alternatives, with major retailers reporting a surge in private-label sales. Coupon usage once thought to be in decline, has made a strong comeback, mainly through digital platforms and loyalty apps. In the UK, where food inflation and the cost of living have been a persistent challenge, many households are scaling back on meat purchases and opting for frozen or tinned foods as a cost-saving measure.
Despite regional differences, the global trend is clear – consumers are becoming more intentional about how and where they spend their grocery budgets. The shift toward discount-driven shopping, meal planning, and strategic purchasing decisions redefines how food brands and retailers operate across markets.
While Japan sees a shift toward staples like tofu and bean sprouts, the US and UK consumer shifts lean toward private labels and bulk buying, highlighting different approaches to cost savings.
Implications for Brands
Brands must recognise that price sensitivity is no longer confined to specific regions. Inflation-driven purchasing habits are reshaping consumer expectations on a global scale. Affordability and value have become key decision-making factors, making it essential for brands to rethink their pricing and promotional strategies.
Companies that traditionally cater to premium or discretionary food categories may need to introduce flexible pricing structures, offering economy-sized packaging or subscription models to retain budget-conscious shoppers. Meanwhile, brands positioned in lower-cost categories have a unique opportunity to strengthen their appeal, emphasising the affordability and versatility of their products.
Japan’s beef bowl industry thrives despite multiple price hikes due to rising costs. Zensho Holdings, the parent company of Sukiya, a Japanese restaurant chain that serves gyudon (beef bowls), curry, and other dishes, has reported strong profit growth and increased customer numbers, highlighting how strategic pricing and strong brand equity can sustain demand even in inflationary times. This resilience reflects Japan’s unique consumer behaviour, where quality and convenience often precede purely cost-cutting measures.
Retailers, particularly those in markets where discount shopping is on the rise, should focus on making savings more accessible. Digital loyalty programs, targeted promotions, and clear communication around price advantages will be critical in maintaining consumer trust and engagement in a price-sensitive environment.
How brands can adapt to a cost-conscious market
Food inflation is not just reshaping consumer habits but redefining how brands must approach pricing, marketing, and product development. As shoppers prioritise affordability and shift toward lower-cost alternatives, companies must take a proactive approach to remain relevant in a rapidly changing market.
One of the most immediate strategies for brands is pricing flexibility. Offering a range of product sizes at different price points can help cater to varying consumer budgets. Smaller packaging options can attract shoppers looking to control their spending, while bulk discounts can appeal to those who prefer to stock up when prices are favourable. Subscription models that provide cost savings over time may also help retain customer loyalty, particularly for staple goods.
Product positioning is equally important. Brands that once relied on premium pricing must now justify their value through differentiation. Messaging focusing on nutritional benefits, sustainability, or versatility can encourage consumers to keep buying products even if prices increase. For brands in high-growth categories like tofu and bean sprouts, reinforcing affordability and multiple-use meal applications can strengthen market share.
Retailers have a crucial role to play in guiding purchasing decisions. Strategic in-store placements, meal-planning promotions, and digital tools that showcase the best value options can help shoppers navigate rising prices. Supermarkets that integrate personalised discounts, loyalty rewards, and digital coupons into their customer experience will be better positioned to retain price-sensitive consumers.
The brands that succeed in an inflationary market will listen to consumers, adapt to shifting priorities, and offer tangible value beyond price alone. As economic conditions continue to shape spending behaviour, remaining flexible and responsive will define long-term brand resilience.
Turning Challenges Into Opportunities
Rising food prices are forcing consumers to rethink their purchasing decisions, but they are also creating new opportunities for brands willing to adapt. The shift toward cost-conscious shopping is not a temporary adjustment; it reflects a more profound change in consumer behavior likely to persist even if inflation stabilises. Brands that recognise these shifts and respond strategically will retain their customer base and strengthen their market position in the long run.
Innovation will be key for companies in high-cost categories. Reformulating products to be cost-effective without compromising quality, offering flexible portion sizes, and introducing alternative ingredients can help brands navigate price sensitivity. For companies in growing categories, reinforcing the value of their products through effective messaging and promotions will be essential to sustaining momentum.
Digital engagement is also becoming more critical. Consumers increasingly rely on price-comparison tools, e-commerce discounts, and loyalty programs to make informed purchasing decisions. Brands that invest in personalised marketing, mobile-based promotions, and transparent pricing strategies will be better positioned to build long-term trust with their audience.
Food inflation is reshaping the competitive landscape but must not be a setback. Companies that approach this challenge with flexibility, creativity, and consumer-first thinking can turn market uncertainty into a moment of strategic growth.
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For years, brands have poured billions into social media, banking on its power to capture consumer attention. But many users are logging off, exhausted by algorithm-driven content, relentless ads, and digital fatigue. The rise of the social media detox movement presents an inconvenient truth for marketers: the platforms once considered indispensable may now push consumers away.
This shift isn’t anecdotal. Market research indicates a clear trend – users, especially Gen Z and millennials, are actively reducing screen time, muting notifications, and deactivating accounts in pursuit of mental clarity and reclaimed time. What was once an occasional break from digital noise is evolving into a broader consumer reset on social media engagement.
For brands, this poses a fundamental question: If audiences are stepping away from social platforms, how do businesses maintain visibility, connection, and influence?
The answer lies not in resisting the trend but in understanding the new rules of engagement.
Why are Consumers Logging Off?
Social media has dominated brand-consumer interactions for over a decade, but a growing segment of users is actively stepping back. The social media detox movement is no longer a fringe trend – it’s a behavioural shift with real marketing implications. Consumers, especially younger demographics, make intentional choices to reduce screen time, limit influencer engagement, and seek more authentic interactions.
The Numbers Behind the Shift
The ‘why’ behind the great digital detox.
Digital detoxing isn’t just about reducing screen time; it’s rejecting the attention economy. Research indicates consumers are logging off due to:
Mental wellness concerns: Young users cite anxiety, comparison culture, and doomscrolling as reasons to disengage.
Algorithm fatigue: The push toward AI-driven content curation has left users feeling manipulated rather than engaged.
Scepticism of influencer culture: With trust in influencers eroding, consumers are shifting toward community-based recommendations over celebrity endorsements.
Privacy concerns: Users are more aware of data collection practices and choose to interact in closed, private digital spaces.
While some consumers return to social media after temporary detox periods, others are making long-term behavioural changes, limiting their reliance on platforms indefinitely. Brands must prepare for a future where digital engagement is increasingly fragmented, requiring a more adaptable marketing strategy.
What the Social Media Detox Trend Means for Brand Marketing Strategies
Consumers aren’t just scrolling less – they’re re-evaluating their digital habits. Brands must rethink their engagement models if social media detoxing becomes a long-term shift rather than a temporary trend.
How do brands remain relevant when audiences deliberately tune out?
For years, brands have built marketing strategies around the assumption that social media is the primary touchpoint for consumer engagement. But with growing numbers of users stepping away, relying solely on platforms like Instagram, TikTok, and Facebook is becoming a risky proposition. The shift toward social media detoxing isn’t just about personal well-being—it’s altering how consumers interact with brands, discover products, and build trust.
The most immediate challenge is declining engagement. If consumers are reducing screen time, brands face shrinking opportunities to reach them through traditional social ads and influencer partnerships. This is particularly concerning for brands targeting Gen Z and Millennials, leading the movement toward digital detoxing. Ad fatigue is also accelerating the problem as consumers grow increasingly resistant to sponsored content and algorithm-driven recommendations.
Another major concern is the vulnerability of relying on rented platforms. With social media engagement declining, brands that have built their digital presence entirely on these platforms are now at the mercy of shifting algorithms and user behaviours. The lack of control over audience reach makes brands susceptible to sudden drops in visibility, forcing them to rethink their approach to audience building.
This shift is also reshaping digital advertising ROI. Brands that once saw high conversion rates from social media campaigns may now struggle as users actively disengage.
Customer acquisition costs (CAC) are rising as social media platforms become less effective at driving conversions. With ad engagement rates declining, brands are shifting investments toward alternative channels such as Google Ads, podcast sponsorships, and streaming service placements. Understanding where audiences are migrating is essential for maximising marketing ROI. Marketers must evaluate whether continued investment in these channels delivers sustainable returns or if it’s time to diversify into owned media and alternative digital touchpoints.
Social media detoxing is not a sign that digital marketing is failing but indicates that consumer preferences are evolving. Brands that recognise this shift early can adapt their strategies to maintain engagement without being overly dependent on social media platforms.
How Brands Can Stay Relevant in an Era of Digital Detox
As consumers disengage from social media, brands must rethink their marketing approach. The solution isn’t to fight the trend – it’s to adapt by diversifying digital touchpoints, strengthening direct customer relationships, and creating value beyond algorithm-driven platforms.
First-party data is becoming a brand’s most valuable asset.
Zero-party data strategies: collecting voluntarily shared consumer insights through interactive content, preference centres, and surveys.
AI-driven CRM systems: leveraging predictive analytics to anticipate customer behaviours and engagement patterns.
Direct-to-consumer models: building deeper relationships via email marketing, loyalty programs, and exclusive brand communities.
With social media engagement fluctuating, brands can no longer rely on third-party platforms to maintain customer relationships. Investing in email marketing, loyalty programs, and brand-owned communities ensures a more direct and sustainable connection with consumers. Email, in particular, is experiencing a resurgence, with open rates outperforming social media engagement rates. Brands focusing on personalised, high-value content in inboxes can build deeper relationships without competing against ever-changing social algorithms.
Brands must also embrace alternative digital spaces.
Community-driven platforms such as Discord, Substack, and brand-owned apps offer a way to engage audiences without relying on social feeds. These platforms foster deeper loyalty by creating spaces where consumers opt in for value-driven interactions rather than being bombarded by passive content. SMS marketing is another underutilised tool, boasting high open rates while offering a direct, personal channel for communication. However, brands must strategically use it, ensuring messages provide real value rather than feeling intrusive.
Offline engagement is also gaining importance once again.
The return of experiential marketing, pop-up activations, and real-world brand interactions allows brands to reach audiences in meaningful ways beyond digital screens. With consumers craving authenticity, brands that create real-world experiences, whether through in-person events or retail activations, can strengthen connections in ways social media alone cannot achieve.
Influencer marketing is evolving as well.
The traditional influencer model, which relied on celebrity endorsements and massive follower counts, is losing effectiveness as trust in influencers declines. Consumers are now looking for recommendations from micro-communities and real-life social circles. Brands that pivot toward peer-driven advocacy – leveraging customer testimonials, employee ambassadors, and brand superfans – will have a stronger foundation for long-term engagement.
The era of passive social media consumption is fading, and brands that rely solely on scrolling behaviour will struggle. The shift toward meaningful, value-driven engagement requires a new playbook, one that prioritises direct relationships, diversified digital ecosystems, and real-world touchpoints. The next section explores how market research can help brands navigate this transition and predict future consumer behaviours.
The Role of Market Research in Navigating the Detox Trend
Guesswork is not an option for brands adjusting to the social media detox movement. Understanding evolving consumer behaviour requires a data-driven approach, and market research plays a critical role in helping brands anticipate shifts, measure engagement beyond social media, and refine their strategies accordingly.
Predictive analytics is key to staying ahead of consumer behaviour trends. Instead of relying on retrospective engagement metrics from social platforms, brands should leverage AI-driven modelling to forecast how audiences will likely interact with digital content. Behavioural data analysis can identify early signals of declining engagement, helping brands pivot before they see a drop in visibility or conversion rates.
Consumer sentiment tracking is another essential tool. While traditional social listening tools focus on platform-based conversations, the social media detox movement means brands must expand their reach to alternative data sources. This includes direct surveys, focus groups, in-app engagement metrics, and customer service interactions. Understanding why consumers are disengaging from social platforms and what alternatives they prefer allows brands to adapt without losing their audience.
Longitudinal studies provide deeper insights into whether digital detoxing is a passing trend or a lasting behavioural shift. Brands should not only measure current engagement levels but track behavioural changes over time. Are consumers leaving platforms temporarily before re-engaging, or are they permanently reducing their social media presence? Are younger audiences more likely to embrace alternative digital experiences? These insights help brands build long-term strategies instead of reacting to short-term fluctuations.
Beyond digital, ethnographic research can uncover how consumer behaviours are evolving offline. Observational studies and in-depth interviews can provide a clearer picture of how consumers interact with brands in physical spaces, whether through in-store experiences, brand-hosted events, or offline word-of-mouth. This shift is crucial as brands look to re-engage audiences in ways that don’t rely on algorithm-driven visibility.
Relying solely on past engagement patterns is no longer sufficient. Market research offers brands a proactive approach to understanding shifting consumer behaviours, enabling them to adapt with precision rather than assumption.
Examples of Brands Successfully Adapting to the Social Media Detox Trend
Some brands are already ahead of the curve, recognising that relying solely on social media is no longer a sustainable marketing strategy. By diversifying their approach, prioritising first-party data, and investing in alternative engagement channels, these companies are maintaining strong consumer relationships despite the rise of digital detoxing.
One example is Lush, the UK-based cosmetics brand that made headlines by stepping away from social media altogether. Frustrated with algorithm-driven limitations and the growing toxicity of digital spaces, Lush removed itself from major platforms like Facebook, Instagram, and TikTok. Instead, the brand doubled down on email marketing, in-store experiences, and community-driven engagement. The result? A more direct, controlled communication strategy that allowed them to maintain brand loyalty while reinforcing their ethical values.
Image Credit: Lush
Another company adapting to the decline of social engagement is Patagonia. The outdoor apparel giant has long embraced an anti-advertising stance, prioritising storytelling over traditional digital campaigns. While many brands compete for social media attention with aggressive paid promotions, Patagonia invests in long-form content, sustainability reports, and documentary-style storytelling. The company builds a stronger emotional connection with its audience without relying on social media algorithms by publishing in-depth research and hosting real-world environmental initiatives.
Luxury brands are also rethinking their digital presence. Bottega Veneta, for example, strategically decided to delete its social media accounts in favour of an exclusive digital magazine and VIP community model. By creating a more controlled, high-value content ecosystem, the brand shifted attention away from mass-market social media feeds and toward more personalised, premium engagement.
Image Credit: The Impression
Even FMCG brands are adjusting. Oatly, known for its plant-based milk alternatives, has embraced offline marketing activations and guerrilla-style advertising to maintain visibility without overly relying on digital engagement. From eye-catching billboards to in-person brand experiences, Oatly’s approach shows awareness can be built in ways that don’t require consumers to be constantly online.
These brands demonstrate a fundamental shift – brands that successfully navigate the social media detox movement build direct, value-driven consumer relationships. The key takeaway? Brands must stop treating social media as the default marketing channel and start viewing it as just one of a broader, more resilient engagement strategy.
The Next Phase of Digital Detoxing
The rise of social media detoxing isn’t a fleeting trend; it’s a symptom of a larger shift in how consumers engage with digital platforms. While some users may eventually return, their behaviour will not be the same. The next phase of digital engagement will be defined by intentionality, privacy, and deeper value exchanges, forcing brands to rethink their long-term marketing strategies.
Social media platforms themselves are already adapting to this detox trend. Features like Instagram’s Quiet Mode and TikTok’s time management reminders signal that even tech giants recognise the risks of overexposure. Platforms will likely continue evolving, offering more user control over content consumption. However, these changes won’t necessarily benefit brands – if anything, they may further limit ad exposure and organic reach as users prioritise personal well-being over passive engagement.
Social media detoxing is not a rejection of digital engagement – it’s a demand for better digital experiences. Consumers are no longer willing to engage with brands passively; they expect intentionality, privacy, and authentic connections. For brands, the question is no longer whether they can survive without social media as their primary channel. The real question is whether they can afford to depend on it at all.
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Need to find the right sample size for your study? Our Sample Size Calculator delivers quick, accurate results.
What is a Sample Size Calculator?
A Sample Size Calculator helps you determine the number of people you need to survey for reliable results. By entering key details like population size, confidence level, and margin of error, you can calculate the ideal sample size for accurate research findings. For example, If you’re surveying 10,000 customers and want 95% confidence with a 5% margin of error, the calculator will tell you how many responses you need to ensure trustworthy insights.
Calculate your sample size
What Does the Result Mean?
The sample size calculation tells you how many people you must survey to get reliable results. If the calculator suggests 400 respondents, that means surveying at least 400 people will give you statistically reliable results within your chosen margin of error. A larger sample size increases accuracy, while a smaller one may produce less precise results. Use this number to plan your survey with confidence!
Tips: Want more precision? Lower the margin of error, but this will increase the required sample size. Not sure how many people to survey? Try different confidence levels and margin of error settings to see how they affect sample size.
Now that you have your sample size, what’s next? Need to check how precise your results are? Use our Margin of Error Calculator to measure the accuracy of your survey.
How to Use the Sample Size Calculator
Step 1:Enter your Population Size – This is not the total population of a country or city. It’s the specific group you want to study (e.g. school students between the ages of 10 to 16 in the U.S.). If you’re surveying customers of a particular store, the population size is the total number of customers who shop there, not the entire city.
Step 2: Choose your Confidence Level – Select how sure you want to be about your results (90%, 95%, or 99%). A higher confidence means greater certainty but requires more responses to reduce errors. For example, a 95% confidence level is the standard for most surveys, but if you choose 99%, you’ll need a larger sample size for higher accuracy.
Step 3: Select your Margin of Error – The range within which the true result may vary. Choose how much your results might vary from the true answer. ✔ Smaller margin (±3%) → More accurate results but requires more responses. ✔ Larger margin (±5% or more) → Less precise but needs fewer responses. For example, If 60% of people like a product and your margin of error is ±3%, the real number could be between 57% and 63%. A ±5% margin means it could be between 55% and 65%.
Step 4:View Your Sample Size – The tool will tell you how many responses you need for reliable data.
Step 5: Plan your survey: Use this number to ensure your research is accurate and meaningful before launching your survey.
Why Does Sample Size Matter?
Getting the right sample size is key to accurate and reliable results. Here’s why it’s important:
✔ Accuracy – Reduces errors and makes your survey results more reliable. ✔ Efficiency – Saves time and resources by collecting just the right amount of data. ✔ Trustworthy Insights – Ensures your findings reflect the whole population, not just random chance.
Want to ensure your qualitative research captures the right insights?
Explore how different approaches impact your study and discover best practices for gathering meaningful data in ourexpert guide on sampling methods.
Who Can Use This Calculator?
✔ Market Research and Businesses – Find the right number of customers to survey for product feedback and market trends. ✔ Academic & Social Research – Ensure studies accurately represent populations for research and policy analysis. ✔ Healthcare & Clinical Trials – Determine how many patients are needed for valid medical research. ✔ Employee & Workplace Surveys – Gather reliable employee insights for engagement and policy decisions. ✔ Government & Public Policy – Calculate voter research and census study respondents. ✔ Media & Advertising – Measure audience opinions and ad effectiveness with accurate sample sizes.
Now that you have your sample size get expert insights to maximize your survey’s design. We provide in-depth insights to drive better decisions as a leading market research agency.
Need to find the right sample size for your study? Our Sample Size Calculator delivers quick, accurate results.
What is a Margin of Error Calculator?
A Margin of Error Calculator helps you understand how much your survey results might change if you surveyed more people. It shows the possible difference between the results you got and what the true answer might be for the whole population. Example: If 60% of people say they like a product with a ±5% margin of error, the actual percentage could be anywhere between 55% and 65%. A smaller margin of error means more precise results, but it usually requires a larger sample size. This tool helps businesses, researchers, and marketers measure the reliability of their data before making important decisions.
Calculate your margin of error
What Does the Result Mean?
The margin of error tells you how much your survey results might change if you surveyed more people.
✔ Smaller margin of error (e.g., ±3%) → More accuracy, but requires more responses. ✔ Larger margin of error (e.g., ±5% or more) → Less precision but needs fewer responses.
Step 1: Enter your Sample Size—The number of people who completed your survey. More responses = better accuracy. For example, if 250 people answered your survey, enter 250 as your sample size.
Step 2: Enter your Population Size – This is not the population of a place. It is the total number of people in the group you want to study. If unsure, use an estimate. For example, if you’re surveying employees at a company with 5,000 staff members, your population size is 5,000.
Step 3: Pick your Confidence Level – How sure do you want to be about your results? Common choices are 90%, 95%, or 99%. A higher confidence level means more accuracy but requires more responses. For example, a 95% confidence level means that if you repeated the survey 100 times, you’d get similar results 95 times.
Step 4: View your Margin of Error—The tool will show your Margin of Error, the possible range by which your results may vary. For example, if 60% of people in your survey like a product and your margin of error is ±4%, the actual percentage could be anywhere between 56% and 64% in the full population.
Why Is It Important to Calculate the Margin of Error?
✔ Ensures Accuracy – Helps you understand how close your survey results are to the true population data. ✔ Builds Confidence – A lower margin of error means you can trust your findings when making important decisions. ✔ Guides Sample Size – Shows whether you need more responses to improve precision. ✔ Detects Meaningful Differences – Helps determine whether small survey result changes are real or just random variations. ✔ Essential for Business and Research – Used in market research, healthcare studies, polling, and decision-making to ensure reliable insights.
Want to create better surveys? Learn how to ask the right questions and get reliable answers in our market research survey guide.
Who Can Use This Calculator?
✔ Market Research and Businesses – Check customer surveys’ reliability before making decisions. ✔ Academic and Social Research – Ensure studies accurately represent populations for research and policy analysis. ✔ Healthcare and Clinical Trials – Determine how many patients are needed for valid medical research. ✔ Employee and Workplace Surveys – Gather reliable employee insights for engagement and policy decisions. ✔ Government and Public Policy – Calculate how many people are needed for voter research and census studies. ✔ Media and Advertising – Measure public opinion and ad effectiveness with accurate sample sizes.
Now that you know your margin of error, get expert insights to maximize your research!
Need help designing your survey or analyzing results? As a leading market research agency, we provide in-depth insights to drive better decisions. Contact us today to discuss your research needs!
The fastest-growing consumer in the toy industry is not a kid. A new generation of adults is rewriting the rules of play, driving billions in annual sales and reshaping how toy brands approach product development and marketing. These buyers, known as kidults, are fueling growth as they seek nostalgia, collectables, and high-end toys once marketed exclusively to children. Their spending habits have become a defining force in the industry, outpacing traditional toy buyers and reshaping market strategies.
According to NPD Group data, these consumers now account for one-fourth of all toy sales annually, generating around $9 billion in revenue. Their presence in the market is not new, but spending has accelerated since the pandemic, leading to year-over-year gains despite challenging economic conditions. At a time when overall toy sales volume has dipped, higher prices and strong demand from kidults have offset losses and kept the industry growing.
Brands that once targeted parents shopping for kids are now catering directly to an audience willing to spend more for limited-edition action figures, premium Lego sets, and collectables tied to their beloved franchises. The shift is not a passing trend; it is a transformation in consumer behaviour that companies can no longer ignore.
Who are Kidults and Why are they Buying Toys and Games?
Play is no longer just for children. Adulthood has been redefined by a generation that sees nostalgia as a lifestyle rather than a fleeting indulgence. Millennials and Gen Z, raised in an era of immersive entertainment and franchise-driven storytelling, embrace toys as symbols of identity and self-expression.
Kidults are particularly drawn to cartoons, superheroes, and collectables that remind them of their childhood. They buy merchandise such as action figures, Lego sets, and dolls that might typically be meant for kids. In response, toy makers have created entire product lines tailored for these buyers, recognising that demand for nostalgic and high-quality collectables continues to surge.
Social media has amplified this shift, turning fandoms into global communities where collectables are status symbols. Limited-edition releases, high-end figures, and retro-inspired toys are not just purchases – they are cultural markers. What was once considered a niche hobby has become mainstream, with brands tapping into a lucrative market that values authenticity, nostalgia, and exclusivity.
Beyond nostalgia, psychological factors like stress relief, escapism, and personal identity also drive this trend. Many adult toy buyers see these purchases as a way to disconnect from daily pressures, embrace childhood joy, and express individuality.
For many kidults, these purchases provide a sense of relaxation and familiarity, helping them cope with daily stress and responsibilities. The ritual of collecting, displaying, and engaging with nostalgic brands creates a sense of stability in an unpredictable world.
Case Study: Funko’s Collector Market Success
Image Credit: The Gamer
Funko, best known for its Pop! Vinyl figures have built an empire catering to adult toy collectors. The brand strategically partnered with major franchises like Marvel, Star Wars, and Harry Potter, offering limited-edition releases and convention-exclusive drops that create demand through scarcity.
Focusing on pop culture nostalgia and tapping into fan-driven communities, Funko has positioned itself as a powerhouse in the collector market. The brand’s direct-to-consumer strategy and exclusive collaborations with major retailers have made it a staple for kidults looking to expand their curated collections.
Toy Companies Are Rewriting Their Playbook for Kidults
The world’s biggest brands are no longer designed solely for children. Lego, Mattel, and Hasbro have pivoted to meet the demands of adults in the toy market, launching premium product lines tied to pop culture, gaming, and blockbuster franchises. High-end collectables, intricate building sets, and nostalgia-driven reboots now dominate shelves, targeting consumers willing to pay a premium for quality and exclusivity.
Lego’s detailed Star Wars and architecture sets, Mattel’s collector-edition Barbie dolls, and Hasbro’s Black Series action figures are just a few examples of how the industry has evolved. Limited-edition drops and direct-to-consumer sales have become critical strategies, leveraging scarcity and brand loyalty to drive demand.
At a time when traditional toy sales have slowed, kidults have emerged as the industry’s biggest growth driver. While board games, puzzles, and playsets saw a pandemic-fueled boom, the first nine months of 2022 recorded a 3% drop in sales volume. Higher prices helped offset this decline, boosting overall sales revenue by 3%. Kidults, who tend to spend more per purchase, have maintained industry momentum.
For toy companies, catering to adults is no longer an experiment; it is a core business strategy.
Kidults Around the World
Case Study: Lego’s Strategic Pivot to Capturing the Kidult Market
Image Credit: Lego
Lego, known for its interlocking brick sets, has skillfully targeted the growing kidult demographic. Recognising the growing demand among adults for complex and nostalgic play experiences, Lego expanded its product line to include intricate sets that appeal to mature consumers.
In 2024, Lego reported a 6% increase in sales, largely attributed to the popularity of its Botanics flower sets specifically designed for older consumers. These sets offer a blend of creativity and relaxation, resonating with adults seeking mindful activities. Lego’s collaborations with popular franchises have bolstered its appeal to the kidult market. Lego taps into the nostalgia and fandoms that drive adult toy purchasing decisions by producing detailed models tied to beloved series.
Lego’s success with the kidult segment shows the value of catering to adult consumers’ desires for nostalgic and hands-on experiences.
What Toys are Kidults Buying?
Kidults are not just a niche segment – they are the backbone of the toy industry’s growth. While they make up only a quarter of total toy buyers, they account for 60% of dollar growth, according to NPD’s Checkout data. Their willingness to pay for premium products has created a revenue stream that far outpaces spending by parents buying for children.
Unlike cost-conscious parents who seek budget-friendly options, kidults gravitate toward collectibles, high-quality models, and limited-edition releases with higher price points. Their spending is not dictated by seasonality in the same way as traditional toy buyers. While holiday shopping remains a peak sales period, this audience purchases year-round, making them a more predictable and stable consumer base.
This shift has allowed toy companies to move beyond the cyclical boom-and-bust nature of holiday-driven sales. Even as inventory challenges and inflation pressure retailers, demand from kidults has remained strong. As a result, brands are increasingly designing marketing campaigns and product launches with this audience in mind, ensuring their place as a long-term driver of industry revenue.
Marketing Strategies For Toy Brands Targeting Kidults
Toy brands no longer rely on traditional retail displays or children’s TV ads to drive sales. Instead, they target kids where they are most engaged – on social media, in collector communities, and through direct-to-consumer platforms. Digital-first campaigns, influencer collaborations, and nostalgia-driven storytelling have become essential tools for capturing this audience.
Limited-edition drops and exclusive collaborations create a sense of urgency and exclusivity that resonates with collectors. Brands like Lego and Mattel have successfully leveraged pre-orders and premium-tier product launches to tap into this demand. Hasbro’s Black Series and Mattel’s Hot Wheels Red Line Club offer high-end collectables directly to fans, bypassing mass-market retail channels and reinforcing brand loyalty.
Community engagement is also key. Toy companies invest in fan-driven events, interactive content, and product tie-ins with entertainment franchises to keep their audiences invested. This approach has expanded beyond the toy aisle – adult-focused toy marketing now includes lifestyle branding, apparel collaborations, and interactive experiences designed to deepen brand attachment.
The brands that understand how to market to kidults are not just selling toys – they are selling identity, nostalgia, and belonging.
Case Study: Pop Mart’s Success with Labubu Collectibles
Image Credit: Los Angeles Times
Pop Mart, a Chinese toy company, has achieved remarkable success by targeting the adult market with its Labubu collectable figures. Created by Hong Kong artist Kasing Lung, Labubu features distinctive rabbit-like ears and spiky teeth, appealing primarily to adults seeking nostalgic and comforting collectables. Priced between $15 and $85, these figurines often sell out within minutes of restocking, leading fans to rely on group chats for updates and endure long lines. Celebrity endorsements, particularly from Lisa of Blackpink, have further boosted Labubu’s popularity. Collectors view these toys not just as playthings but as art pieces that add personality to their homes. Despite the prevalence of knockoffs, demand for Labubu continues to grow, with Pop Mart expanding its presence in the U.S. and reporting strong sales figures. This trend reflects a broader rise in kidult-targeted emotional comfort toys.
The Future of the Toy Industry Belongs to Adults
Kidults are not just spending – they are shaping the industry’s future. The brands that continue to evolve, embracing technology, sustainability, and personalisation, will lead the next evolution of the toy market. Augmented reality experiences, app-connected toys, and AI-powered collectables are emerging as the next “it” toys, blending nostalgia with modern tech. Eco-conscious buyers also influence brands to redesign packaging, adopt sustainable materials, and explore digital collectables.
The next step for brands is clear: those who embrace innovation while preserving nostalgia will remain at the forefront of this booming market.
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A decade ago, purpose-driven marketing set brands apart by championing social and environmental causes. Today, it’s an expectation, not a differentiator. As scrutiny from consumers, watchdogs, and regulators intensifies, the stakes have never been higher. Public trust in corporate promises has plummeted, with over 60% of consumers sceptical of sustainability and social impact claims. Meanwhile, global regulations are tightening, imposing hefty penalties for vague or unverified ESG statements. The pressure is mounting, and the cracks are beginning to show.
For brands, the challenge is clear: evolve or risk being called out, cancelled, or left behind.
How Evolving Expectations Are Redefining Purpose-Driven Marketing
Consumer Scepticism at an All-Time High
Consumers are increasingly critical of brands’ ESG claims. High-profile incidents have intensified this scepticism.
A 2023 survey revealed that 57% of Canadian consumers are sceptical of most corporate green claims.
Regulatory Crackdowns Are Raising the Stakes for Brands
Regulatory bodies are tightening their oversight of corporate ESG claims in response to growing consumer distrust. The European Union’s Corporate Sustainability Reporting Directive (CSRD), enacted in 2023, requires companies with over 250 employees to disclose comprehensive ESG metrics backed by concrete evidence.
Failure to comply carries significant repercussions. In 2024, the UK’s Advertising Standards Authority banned several advertisements for misleading environmental claims, signalling a zero-tolerance approach to greenwashing. Similarly, the Australian Competition and Consumer Commission has initiated investigations into companies exaggerating sustainability claims, with potential fines reaching millions of dollars.
Technology as a Transparency Tool
To meet heightened scrutiny, brands are turning to technology for greater transparency. Blockchain is being utilised to trace product origins and verify sustainability claims. Platforms like Provenance enable companies to offer consumers verifiable supply chain information, fostering trust.
Artificial Intelligence (AI) is also playing a pivotal role. By analyzing vast data sets in real-time, AI can help brands monitor compliance with ESG standards, identify potential risks, and ensure sustainability initiatives are not merely performative but result in measurable outcomes.
Why Some Purpose-Driven Efforts Fail
Superficial Storytelling Backfires
In early 2025, Procter & Gamble faced a lawsuit over misleading environmental claims for its Charmin toilet paper. The lawsuit alleged greenwashing, arguing that the company’s sustainability promises lacked meaningful environmental benefits.
The case highlights the dangers of superficial ESG storytelling. Unsupported environmental claims not only mislead consumers but also expose brands to legal and reputational risks.
Misalignment Between ESG Claims and Practices
In August 2024, LVMH’s Dior came under scrutiny for failing to meet supply chain disclosure requirements under the UK’s Modern Slavery Act. The brand’s website had outdated anti-slavery statements, casting doubt on the authenticity of its ESG commitments.
Discrepancies between ESG commitments and actual practices erode trust and invite regulatory scrutiny. Brands must ensure their operational realities align with public commitments to maintain credibility.
Case Study: H&M – A Cautionary Tale in Purpose-Driven Marketing
Image Credit: Just Style
Background
H&M launched its “Conscious Collection” to position itself as a leader in sustainable fashion. It pledged to achieve 100% sustainable or recycled materials by 2030 and introduced sustainability scores for its products, aiming to empower consumers to make informed choices.
The Issue
In 2022, H&M faced a class-action lawsuit in New York, accusing the brand of greenwashing. Investigations revealed that some sustainability scores were misleading and that the company’s fast-fashion business model contradicted its environmental claims. Critics argued that while H&M promoted sustainability, its overproduction and waste practices remained unaddressed.
The Outcome
The lawsuit dealt a significant blow to H&M’s reputation, highlighting the dangers of overpromising and failing to align purpose with core business operations. The incident symbolised how greenwashing could backfire, amplifying consumer scepticism and regulatory scrutiny.
Lessons Learned
Avoid Superficial Messaging: Sustainability efforts must be deeply integrated into business operations.
Ensure Transparency: Verifiable and accurate data builds trust and credibility.
Address Systemic Issues: Tackle industry-wide challenges, such as overproduction, to align messaging with meaningful action.
Overpromising and Underperforming
In 2024, luxury fashion brands, including Gucci and Bottega Veneta, came under fire for scaling back their ambitious sustainability targets. Many revised their goals to align with the Paris Agreement’s 2050 net-zero target, highlighting the challenges of meeting earlier, more ambitious deadlines.
Overpromising ESG commitments without clear, actionable plans erodes public distrust and harms brand reputation. Companies must set realistic goals and communicate their progress to avoid perceptions of insincerity.
Building Credibility Through Authenticity
Align Actions with Words: Ensure that marketing messages accurately reflect the company’s actual practices. Misrepresentations can lead to legal repercussions and loss of consumer trust.
Maintain Transparency: Regularly update stakeholders on ESG initiatives and progress. Transparency fosters trust and demonstrates a genuine commitment to stated goals.
Set Achievable Goals: Establish realistic ESG targets with clear roadmaps for achievement. Overambitious promises without concrete plans can backfire, leading to incredulity.
Purpose-Driven Marketing Strategies Shaping the Future
Measuring Impact Over Messaging
Consumers and stakeholders demand tangible evidence of a company’s environmental and social commitments. Unilever exemplifies this by integrating comprehensive sustainability disclosures into its Annual Report. Included in the report are detailed insights into its progress on sustainability metrics, reinforcing the brand’s commitment to transparency and accountability.
Similarly, Danone has embraced the B Corp certification, reflecting its dedication to meeting rigorous social and environmental performance standards, accountability, and transparency.
The Rise of Regenerative Business Models
Leading brands are shifting from traditional sustainability to regenerative practices that restore and enhance ecosystems. Patagonia, for instance, leads the way in regenerative organic agriculture, enhancing soil health, animal welfare, and social equity.
Driving Change Through Collaboration
Tackling complex global challenges demands collective action. The Ellen MacArthur Foundation’s New Plastics Economy initiative exemplifies how collaboration can drive systemic change. This initiative unites businesses, governments, and organisations worldwide behind a common vision of a circular economy for plastics, aiming to eliminate waste and pollution through innovative design and reuse strategies.
By leveraging shared knowledge and resources, the New Plastics Economy initiative effectively combats plastic pollution through cross-sector partnerships. These efforts prove that systemic change is possible when stakeholders unite around a common goal.
Engaging Communities for Meaningful Impact
Companies are recognising the power of working alongside local communities to develop solutions to social and environmental challenges. Engaging stakeholders at the grassroots level allows brands to create initiatives with lasting impact.
Harnessing Technology to Build Trust and Transparency
Technology is transforming corporate transparency. Blockchain, for instance, helps trace product origins and verify sustainability claims, offering consumers clear insights into supply chains. This integration fosters trust and drives accountability in purpose-driven marketing.
The Future of Purpose-Driven Marketing
Authenticity as the Cornerstone
The evolution of purpose-driven marketing underscores a simple but critical truth: authenticity is non-negotiable. Consumers today expect more than buzzwords and polished campaigns; they want tangible proof of meaningful impact.
From Optics to Impact
Brands that will succeed in this new era focus on measurable outcomes rather than superficial messaging. Companies like Patagonia, Unilever, and Danone set the standard by embedding purpose into their operations, using technology for transparency, and co-creating with communities to drive meaningful change. Their efforts demonstrate that purpose-driven marketing isn’t just about addressing consumer demands – it’s about redefining what it means to do business responsibly.
For brands navigating this new landscape, the way forward is clear:
Embed Purpose into Core Operations: Purpose must extend beyond marketing and permeate every aspect of the business, from supply chain management to product development.
Invest in Transparency and Accountability: Leveraging technologies like blockchain and AI can help validate ESG claims and foster consumer trust.
Focus on Long-Term Value Creation: Sustainability should shift from a compliance-driven effort to a strategy for competitive advantage and systemic change.
Brands today face a pivotal choice: adapt to meet rising expectations or risk obsolescence. In a landscape where authenticity, transparency, and impact are paramount, the most successful brands will embed purpose into their core operations, treating it as a long-term business strategy rather than a passing trend.
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Senior Marketing Executive
Sales & Marketing
General Manager PR -Internal Communications & Government Affairs
Vital Strategies
Customer Intelligence Director