by MADDIE MICHALIK, Manager, Communications, The Toy Association
What do two adorable, chubby penguins hugging on a phone screen have to do with the future of toys? More than you’d think.
Pudgy Penguins started as a digital-first phenomenon — a community-driven brand that built a following across social media, memes, and online culture. Now, through partnerships with Schleich, PlayMonster, and more, those same characters are stepping into the toy aisle this year as a party game (Pudgy Penguins Icebreakers) and collectible figures ready to be displayed, shared, and yes, even posed to hug each other. It’s a playful but powerful example of how fandom today can originate anywhere and quickly turn into consumer products.
Toys and licensing have never been more intertwined, and the numbers prove it. According to Circana, licensed toys now account for a record-breaking 37% of all toy sales in the U.S., with sales climbing 18% in the first half of last year. Even more telling is that every top growth property in the first half of 2025 was tied to content, entertainment, or cultural moments.
“Fans today don’t just want to watch their favorite franchises — they want to participate in them,” says Adrienne Appell, Executive Vice President of Marketing Communications at The Toy Association. “What we’re seeing is a shift toward toys that are designed to meet fans exactly where they are, whether that’s a trending series, a global event, or even a moment that takes off online overnight,” she explains. “It’s about giving fans a tangible way to connect with what they love.”
That real-time connection is helping spark a new wave of licensed products that feel current, relevant, and rooted in the fan experience. It also ties directly to “Fan-Driven Play,” one of The Toy Association’s top toy trends for 2026. Companies are creating products influenced not only by IP, but by the ways fans engage with it — from collectible drops timed to major pop culture moments to toys designed for role-play, display, and social sharing. The shift mirrors how today’s kids and lifelong fans alike interact with the brands and stories they follow.
“Speed is redefining licensing,” Appell continues. “Toy companies are tapping into viral moments as they happen. What’s exciting is how quickly the industry is evolving to meet that expectation, creating products that reflect what’s trending across culture and giving fans a way to participate, not just observe.”
Take the breakout popularity of Netflix’s KPop Demon Hunters, for example. Building on the franchise’s growing fanbase, Hasbro is debuting a NERF collection inspired by the animated hit, featuring character-specific foam role-play gear that mirrors on-screen designs. The result is cosplay-ready playthings that let fans immerse themselves more deeply in the HUNTR/X universe. Additional licensees include Spin Master, Funko, The LEGO Group, The Woobles, and more.
Global events are also a major catalyst for fan-inspired products. Late last year, Mattel introduced Team Barbie, a collection of dolls modeled after Olympic rugby athletes — including Ilona Maher, a U.S. Olympic medalist, social media star, and body positivity advocate. And with the FIFA World Cup returning this year, hosted across the U.S., Canada, and Mexico, Jazwares has partnered with FIFA on a line of soccer-themed plush, wearables, and collectibles tied to the tournament’s energy. Featuring mascots Maple the Moose, Zayu the Jaguar, and Clutch the Bald Eagle, the collection captures the excitement of a worldwide event and translates it into something fans can celebrate and cherish.
Taken together, these examples highlight a clear shift: Licensed toys are no longer solely inspired by traditional, movie-led cycles, but are now keeping pace with pop culture as it unfolds.
Stay on the Pulse of Play!
A version of this feature first appeared in The Toy Book‘s 2026 Licensing & Entertainment Issue, featuring The Licensing Book. Read the full issue here!
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