Toy Crazes and Fads

How toys like fidget spinners, Beanie Babies and Labubu suddenly become crazes and then crash, and what fads teach about demand, scarcity and bubbles.

Some toys become crazes: sudden, intense demand followed by a crash.

Examples

Rubik’s Cube (early 1980s).
Tamagotchi (1990s).
Beanie Babies (1990s): collectors treated them as investments; prices crashed later.
Fidget spinners (2017): sold everywhere, then disappeared within months.
Labubu (2024-25): collectible dolls by China’s Pop Mart that became a global craze, with resale prices soaring.

Why crazes happen

Social contagion: children and adults want what others have.
Social media spreads trends fast.
Scarcity: limited supply and “blind boxes” add excitement.
Speculation: people buy expecting to resell.

Why they crash

Supply catches up, making the toy common.
Novelty fades.
Speculators rush to sell.

Risks for businesses

Overproduction at the peak leaves unsold stock.
Counterfeits flood markets.

Economic lesson

Fads resemble asset bubbles: prices driven by expectations of others’ demand.

The spinner summer

In 2017, shops sold fidget spinners by the thousands. By autumn, shelves were full of unsold spinners at discount prices.

Thinking popular toys stay valuable

Crazes often crash as supply rises and novelty fades.

Key takeaways

Toy crazes spread through social contagion and media.
Scarcity and speculation fuel prices.
Crazes crash when supply rises and novelty fades.
Fads resemble asset bubbles.