Funko's Strategic Vision Amid Economic Challenges

Funko, known for its iconic Pop figures, is a significant player in the collectibles market, boasting over 900 active licenses and having sold more than 1 billion figures since its inception nearly 30 years ago. As the New York Toy Fair commences, Funko's new CEO, Josh Simon, is poised to unveil the company's strategy to navigate the current economic landscape, which poses challenges for consumer spending.

Variety Magazine

Josh Simon, who previously served as vice president of Netflix’s consumer products division, is now at the helm of Funko. He acknowledges the difficulties posed by an uncertain economy but expresses confidence in the brand's ability to adapt. Simon highlights a notable trend: approximately one in six toys sold falls into the collectibles category, which experienced a nearly 30% growth last year. This growth indicates a robust market for collectibles, even as consumers face financial constraints.

Variety Magazine

At the New York Toy Fair, Simon will showcase Funko's 2026 lineup, featuring Pop figures from anticipated titles such as "The Mandalorian and Grogu," Netflix’s "One Piece" Season 2, "Toy Story 5," and the live-action adaptation of "Moana." The lineup also includes figures from the DC universe, Greta Gerwig’s "The Chronicles of Narnia," "Minions 3," and new entries in the "Spider-Man" and "Avengers" franchises.

Variety Magazine

Simon notes a significant demographic shift in toy purchasing, with nearly 40% of adults buying toys for themselves in 2025. Among younger adults aged 18-34, this figure rises to approximately 65%. This trend, often referred to as the 'kidult' phenomenon, suggests that adults are increasingly engaging with toys, not just for children but as collectibles for personal enjoyment.

Variety Magazine

Simon emphasizes the importance of physical ownership in an increasingly digital world. He argues that the tangible nature of collectibles holds value for consumers, especially as social media proliferates. “I think, ultimately, people are finding space for these things,” Simon stated, reinforcing the notion that consumers are willing to accommodate collectibles in their living spaces.

Variety Magazine

Despite Simon's optimism, some industry observers question whether consumers can sustain their spending on collectibles during economic downturns. The challenge remains whether Funko can maintain its growth trajectory amidst fluctuating consumer priorities and spending habits.

Variety Magazine

• “There’s a couple dimensions to that,” — Josh Simon, CEO of Funko

Variety Magazine

• “As a category, it’s growing.” — Josh Simon, CEO of Funko

Variety Magazine

• “As a category, it’s growing. That’s why I would debate you on how much free space you have in your apartment. Because I think, ultimately, people are finding space for these things. And I think as the world continues to become more digital and online and on social media, I think the counter to that is there’s almost more value for something that’s physical and tangible and that you can hold and that you can gift. And when you look at the proliferation of content, and how quickly you can swipe through something on TikTok or Instagram, capturing that moment in a physical way, I think, becomes increasingly important to consumers. It’s a pretty big world out there, and I think that the trend of physical ownership and capturing those moments in physical form is only going to continue.” — Josh Simon, CEO of Funko

Variety Magazine

In summary, Funko's strategic direction under Josh Simon aims to leverage the growing collectibles market while addressing the challenges posed by economic uncertainty. The company's focus on appealing to both traditional fans and the emerging 'kidult' demographic may prove pivotal in sustaining its market position.

Variety Magazine