Squishy madness: The new toy industry hit generating hundreds of millions of dollars

The toy industry has found a new hit, and it does not require advanced technology, batteries, or a particularly high price. Squishy toys — soft and flexible products designed for squeezing and playing — have become one of the most prominent trends in the US market in 2026. Among the popular products are toys in the shape of dumplings, ice cubes, and gummy bears, alongside NeeDoh, a series of toys from the Massachusetts-based company Schylling.

According to data from market research firm Circana, sales of squishy toys in the US totaled about $297 million through June — a fourfold increase compared to the same period last year. At the same time, the number of units sold jumped by nearly 200%, to 58.6 million.

Kristen McLean, vice president of industry advisor and entertainment lead at Circana, told CNBC that the combination of an accessible price and exposure on social media was central to the products' success:

"While the price and the stores where they are sold make them very available and accessible in terms of price, the NeeDoh brand in particular started its journey on social media. They really managed to capture a moment in the zeitgeist."

According to her, "fun colors, interesting packaging, stress relief, and play" helped create the viral foundation for wider adoption. Social media has become a significant sales engine in the toy industry in recent years, especially for relatively cheap products that are easy to demonstrate in a short video. Circana notes that TikTok Shop is already responsible for 1% of all retail sales and 3% of e-commerce sales, just two years after its launch. The toys, hobbies, and collectibles category is the third largest on the platform.

"Squishy toys are very accessible and relatively cheap, so it is easy to purchase them impulsively after consumers see them becoming trendy on social media," said Lu Wei Teck, global lead for toys and games at Euromonitor International. According to him, the success is also related to the consumers' mood:

"Against a backdrop of economic uncertainty, rising stress levels, and digital fatigue, consumers are increasingly drawn to products that offer simple moments of comfort and relaxation."

The demand is not limited to the US. Kevin Kwok, director of Kids Village Asia, the exclusive distributor of NeeDoh in Singapore, Malaysia, and Brunei, told CNBC that inquiries from merchants and retailers have jumped nearly 20 times compared to the same period last year. According to him, the surge began around January and strengthened following celebrities who showcased the products on social media.

At the same time, it seems the audience is not composed only of children: 60% of NeeDoh buyers were parents who bought the toys for their children, but 18.2% reported that they purchased them for themselves. The question now is whether this is a passing hit or a category that will remain.

"The current enthusiasm will fade over time, as happened with fidget spinners, but the broader appeal for sensory and tactile-based play will remain," said Lu. "As consumers increasingly look for simple ways to relax and disconnect from digital overload, toys that support mindful play will continue to be relevant."