BY JOHN ELLIS, FINANCIAL ADVISOR
The world’s biggest toy fair just finished in Nuremberg. In halls filled with over 2,300 exhibitors and around one million products, including about 70,000 new ones, buyers, designers, and enthusiasts discussed Christmas 2026!
This year’s fair highlighted a toy sector in recovery and reinvention. Global sales grew 7% in 2025, driven by pop culture tie-ins, collectibles, and adults buying toys for themselves. In Europe’s major markets, adults’ share of toy spending has more than doubled from 9% 10 years ago around 25-30% in broader estimates.
Grown-ups, with higher disposable income and fewer child-related costs, indulge year-round rather than just at Christmas. Premium items, like a €1,000 Lego Star Wars Death Star, reflect nostalgia and a desire for escapism.
Toymakers are feeding this desire with limited editions, luxury collaborations, such as Hot Wheels with Gucci, and game related purchases like Pop Mart’s “blind boxes” that add chance to collecting, thus keeping demand high.
Remember Tamagotchis? There back with a bang. The virtual pet that fascinated millions in the late nineties, has surged again with modern twists, touchscreens, connectivity, and collaborations, appealing to all ages especially through social media trends. Furby? the quirky robotic creature that sold over forty million between 1998 and 2000 has returned with new interactive versions like DJ Furby, blending music, games, and calming features to charm both kids and collectors.
Yet the most disruptive force is artificial intelligence. Chinese manufacturers proclaimed 2025 the “year of AI” for toys, and the drive continues into 2026 with talking robots, interactive teddies, and adaptive games. These promise personalised childhoods, as in stories starring the child, custom teachers boosting literacy, or games that adjust to skill levels. In theory, AI levels the field in education with tailored lessons, even rewriting content as songs or cartoons for any child anywhere.
The promise is huge, but so are the dangers. AI can give incorrect answers, veer into unsuitable topics (one teddy famously strayed into adult territory), or fuel deepfakes and cheating. More insidiously, when working as intended, it serves up only preferred content, “stifling chance and tolerance for the unfamiliar”. One-sided chatbot “friendships” that never challenge or demand compromise could leave children ill-prepared for real human relationships, especially amid declining sibling numbers and rising isolation.
The industry and society must respond carefully. Parents should vet AI toys rigorously. Regulators need robust age restrictions, unlike past tolerance with social media. Schools should prioritise in-person assessments and teach irreplaceable skills like debate, empathy, and appreciating differences.
From Nuremberg’s vibrant displays to shop shelves this Christmas, toys blend joy, nostalgia, and innovation. Whether through Tamagotchi care routines, talkative Furbies, or AI friends, play should foster wonder. But. as personalisation deepens, the true benefits will lie in balancing technology with real-life connections, ensuring children and adults alike experience the unpredictable magic of unscripted play and genuine relationships.
The toy world needs to strike a balance.
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