Gen Z favorite toymaker Jellycat doubles annual profit in adult-fueled toy craze

British toybrand Jellycat, loved by Gen Z globally, more than doubled its profit in 2024 on the back of a "kidult" driven craze for toys as more adults turn to soft toys for comfort.

Jellycat, a private company founded by Thomas Gatacre in London in 1999, is popular for selling huggable soft toys from its £18 ($24) Bashful Beige Bunny to its £275 Amuseables Nordic Spruce Christmas Tree. The firm saw "rapid growth" in 2024, according to financial reports shared with CNBC.

The company, owned by Jelly Holdings, saw revenue rise 66% to £333 million ($449 million) for the year ending December 31, up from £200 million in 2023. Its profit before tax more than doubled to £139 million, up from £67 million the prior year. It's planning to pay dividends of £110 million to its owners.

The toymaker sells its "jellies" in 8,000 shops across 80 countries, including at high-end department stores like Selfridges and Harrods in London and Galeries Lafayette in Paris. It said its saw the most growth in demand for its soft toys in Europe, China and the U.S.

"Everyone seems to be loving them: from children to kidults and Gen Z, all the way through the generations to parents, grandparents and beyond," the company said in the report.

Its also seeing popularity across its new "Jellycat Experiences" held in stores such as the Jellycat Fish & Chips in Selfridges and Jellycat Patisserie in Galeries Lafayette. Other hot items include accessories like bag charms and handbags.

The company's growth can be traced to growing adult demand for kid toys with the $30 Labubu doll becoming a viral TikTok sensation earlier this year. It's gained traction as an international status symbol with both adults and kids buying into the hype around the tiny stuffed animal toys.

On TikTok, Jellycat boasts 2.1 million followers at present while 20 million posts sit under the hashtag #jellycathaul. In viral videos, young adults rave over their $20 dollar soft toys, while some show off massive collections of jellies stuffed on their shelves.

Toy industry research group Circana found that adults are driving the toy market in the U.S, with sales rising 18% this year, across customers aged 18 and older. Adults spent $1.8 billion on toys in the first quarter of this year, accounting for the highest spending across all age groups.

In 2024. sales were being driven by "nostalgic" kidults seeking out comfort amid economic and geopolitical turmoil globally, Circana said.

"By tapping into the joy economy, toys are increasingly being recognised for their positive mental health benefits as they spark nostalgia and bring escapism from global turmoil into consumers' lives," Melissa Symonds, UK toys director for Circana said at the time.