How can the “joy economy” help your sales this Christmas?

As the Christmas season approaches, many consumers and businesses aren’t quite feeling the usual “joy” that we experience every year, and it’s easy to see why. 

With the cost of living crisis continuing to bite, rising unemployment, and uncertainty around the upcoming Autumn Budget, there isn’t a whole lot of festivity around. 

Yet even in tough times, people are still looking for moments of happiness and ways to lift their spirits — a search that is creating opportunities for businesses.

But what is the “joy economy”, and how could it add some cheer to your sales figures this Christmas?

What is the joy economy?

The joy economy is an economic trend where businesses and brands focus on delivering experiences, products, or services that make people genuinely happy, entertained, or emotionally fulfilled — rather than just meeting practical needs.

For businesses, tensions are high around the upcoming Autumn Budget announcement, with almost four and ten firms expected to make job cuts and freeze hiring over the next 12 months.

Consumers are feeling the strain too. With the unemployment rate hitting 5% this week – on top of the cost of living crisis continuing to strain millions of households — many people are finding it harder to look forward to the holiday season.

Yet despite the doom and gloom, Brits are still looking for joy in the little things, as a survey by Human8 reveals that 91% of respondents say it’s important to find small moments of happiness in life’s seriousness.

This is where the joy economy comes in, as businesses that can offer those small sparks of delight aren’t just making people feel good, but meeting a real demand.

Joy economy in action: how “kidults” are boosting the toy industry

Evidence of the joy economy’s impact can be seen in the rise of UK toy sales, thanks to “kidults” — adults who buy products and services, such as toys, collectables and video games, typically aimed at children.

Playtime isn’t just for kids anymore, as statistics by research and technology firm Circana reveal that 43% of young adults have purchased a toy either for themselves or another adult this year. 

And it’s their love for such things that has seen the toy market report its strongest performance in years, as Circana reported a growth to £3.9bn in the last 12 months (up to August 2025). 

LEGO sets in particular, such as Formula 1, LEGO Botanicals, and Minecraft, have seen notable growth within this period — accounting for 18% of purchases. Collectables are also driving this growth, with trading cards, mini figures, and blind bags representing 22% of all toys sold. Adult colouring books, which are designed to promote mindfulness and relaxation, have also seen vast popularity, with the market projected to reach around $1.2bn by 2032.

“It’s a double success story,” Melissa Symonds, UK Toys Director at Circana, comments. “We’re seeing children rediscover the joy of play while adults are embracing it as a form of self-care, nostalgia and fandom. That combination is keeping the market vibrant and relevant.”

How should your business ride the joy economy?

With more people looking for comfort and happiness in difficult times, the joy economy is a real opportunity for businesses to connect with their target audience on a deeper and more personal level, while still remaining recession-proof.

Ultimately, it’s less about selling a product and more about creating a mood, whether that be through fun packaging, personalised touches, or uplifting marketing campaigns. 

The rise of “kidults” – plus the clear impact their spending habits have had on the toys industry — shows that nostalgia sells. In fact, according to Accelerant Research, consumers are 10-15% more likely to pay for products that evoke nostalgic feelings.

A prime example of this is Surreal, which was featured in the Startups 100 Index for 2025. Its branding, bright colours, and playful tone are a homage to the breakfast cereals from the ‘90s, but with the added bonus of being high in protein and low in sugar.

There’s also a lot of value in catering to the small, everyday moments that people look for, termed “micro joys” by the Circana report. Chocolate, for example, is still indulged by shoppers, with 61% of Brits willing to spend money on premium chocolate despite the larger price tag. 

Even so, businesses need to be smart about how they operate, especially during uncertain times. While this doesn’t mean cutting corners on happiness, striking the right balance between investing in the product experience that resonates with customers without breaking their bank, but that also protects your bottom line, is key.