Senior Editor Rebecca Moretti explores hot topics at the intersection of finance and pop culture in our new column, “Out of the Chat.”

While Labubus haven’t been around for long, the recent craze over the creepy-cute plush toys got me thinking about the power of products that make adults feel like kids again.

The demand for these is so strong that the company behind Labubu (Chinese toy giant Pop Mart) now has a $46 billion market cap and is projecting revenue to at least triple for the first half of the year. Some adults are spending thousands to get their hands on the furry grinning dolls, which can go for over $100 a pop.

Considering the turbulence of recent years, it makes sense that folks would be latching on to things that remind them of childhood. “Adulting” has never been all fun, but the past five years have been full of uncertainty, from the world-stopping pandemic to major geopolitical turmoil, inflation, tariffs and more.

Nostalgic products can transport us back to a simpler era. Even for Millennials like me, there’s nothing quite like that warm, wistful feeling we get when we put on an old Disney movie, listen to a favorite song from our childhood, or eat that sugary treat that reminds us of happier times. (Dunkaroos, anyone?)

Maybe this comfort factor is why nostalgia — which means homesickness — seems to be guiding spending habits, marketing strategies, and possibly even investment decisions. And why we’re seeing what I’ll call a “nostalgia premium.”

One recent survey showed two in three adults would pay an average of 32% more to have their favorite old-school products revived. (OG faves like Game Boys, Banana Nesquik, and iPods were on the list.) Other surveys have found that it’s nostalgia that can push consumers to make a purchase. (Think: Someone who doesn’t normally buy movie tickets going to see “Freakier Friday” — the sequel to the 2003 Disney hit).

Big brands have certainly noticed the appeal of going retro. Just recently, Ty launched new Beanie Babies (yes, they’re back), Bath & Body Works revived 90s-fave fragrances, and Mattel started selling “Clueless” toys (feat. the Cher and Dionne characters as Polly Pockets) to celebrate the iconic movie’s 30th anniversary.

McDonald’s, which reversed a decline in U.S. sales last quarter, is arguably the leader in nostalgia marketing, bringing back beloved collectables like Pokémon in Happy Meals and reviving vintage items like Snack Wraps and the Holiday Pie (with great fanfare). And this month, retro McDonaldland mascots like Grimace and Hamburglar appeared in its latest adult Happy Meal (first launched in 2022).

Interestingly, younger generations are the likeliest to feel nostalgic, according to market research firm GWI: 15% of Gen Zers and 14% of Millennials said they’d prefer to think about the past rather than the future.

As someone who grew up using point-and-shoot cameras and listening to Britney Spears CDs, it’s interesting to see teens embrace trends they weren’t even around for.

In fact, Gen Z seems obsessed with the 90s, Y2K, and low-tech, something I’ve noticed not just in social media and fashion (hello again, low-rise jeans), but in interactions with friends’ younger siblings. At a bridal party I recently attended, the youngest people in the room were the only ones armed with disposable cameras. (The rest of us used our uncool smartphones.)

“Trailblazed by Gen Z and millennials, more people are hungry for all kinds of retro, pre-digital hobbies and experiences that restore the tactile and touch,” the Global Wellness Institute said in a June report.

Perhaps it makes sense that people who grew up on social media and had their formative years upended by the pandemic are the most likely to seek the comfort of simpler times. After all, many Gen Zers had their education disrupted and struggled to find a place in the COVID job market.

The Labubu craze makes a lot of sense in this context. Even if we tell ourselves they're a fashionable purse accessory, they're also just a great excuse for adults to tote around stuffed animals. No judgement — I love it.

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