The Rise of the 'Kidult' and the Battle for Hot Wheels
The Scene: A clandestine transaction, reminiscent of a drug deal, unfolds at the back of a toy store. What's being exchanged? Not drugs, but a box of Hot Wheels, the iconic toy cars that have captivated generations. This seemingly innocent transaction reveals a deeper trend: the emergence of a powerful force in the toy industry - the 'kidult'.
The Kidult Phenomenon: Craig Callum, Senior Design Manager at Hot Wheels, sheds light on this intriguing development. 'Kidulting', as it's been dubbed, is the re-engagement of adults with their childhood favorites. It's a trend that has transformed the toy industry, with Hot Wheels at its forefront. Mattel, the owner of Hot Wheels, reaped over A$2.5 billion in gross sales in 2025, largely due to this adult collector market.
Why Hot Wheels? The appeal is multifaceted. From the affordable price point (starting at just $2) to the frequent release of new models, Hot Wheels offer a unique blend of nostalgia and excitement. Paul Faulkner, Managing Director for Mattel Australia, highlights the evolution of the collector base. 'Collectors have always been a part of Hot Wheels' journey, but now we're seeing a new generation of collectors who grew up with these toys and are now passionate car enthusiasts.'
Designing for Two Audiences: A visit to any Australian toy store reveals Mattel's strategy. On one hand, there are the vibrant, whimsical designs aimed at children. On the other, there are the more sophisticated models, like the 1985 Lancia Delta S4 and 2000 Subaru Impreza WRX, clearly targeted at adult collectors. Craig Callum explains, 'We can adjust our lineup to cater to both. The car enthusiasts and collectors are more vocal about their preferences, which helps us fine-tune our premium car offerings.'
The Dark Side of Collecting: However, this rise of adult collectors has a sinister side effect. Some collectors have become opportunistic resellers, snapping up Hot Wheels in bulk and selling them online at marked-up prices. Find the right $2 Hot Wheels, and you could sell it for $10 or more, a lucrative business model that has led to some collectors claiming to have dozens of in-demand models.
The Ferrari Effect: This trend is most evident with Ferrari models. With Mattel renewing its licensing agreement with Ferrari at the start of 2025, a new generation of Ferrari Hot Wheels hit the market, only to be immediately snapped up by collectors and resold at significant margins. 'You won't find a single Ferrari in any store in Sydney,' one collector lamented.
Impact on Kids: This behavior has a direct impact on children's access to these toys. Adult collectors, driven by their passion and the potential for profit, are making it harder for kids to enjoy these toys as they were intended. Paul Faulkner acknowledges this issue but maintains a measured response, 'We're not overly concerned. We aim to learn from each release and strike the right balance for the next.'
A Complex Issue: The rise of the 'kidult' presents a unique challenge for the toy industry. While it has brought about a resurgence in interest and profitability, it has also created a market that is increasingly inaccessible to children. As the toy industry navigates this new landscape, the question remains: how can they cater to both adult collectors and the children who inspired this trend in the first place?
