Gen Z and Millennials are the fastest-growing age groups in collecting, and the numbers are not even close. According to the 2024 Bank of America Private Bank Study of Wealthy Americans, 94% of Gen Z and Millennials under age 44 express interest in collectibles, compared to just 65% of all respondents. This generational surge is reshaping everything from how Pokémon cards are valued to how the broader collectibles market operates. Collectors aged 25-40 now make up 54% of all first-time buyers in the market, representing a fundamental shift in who drives demand. The scale of this demographic transition becomes clearer when you look at wealth allocation.
Gen Z collectors dedicate 26% of their total wealth to art and collectibles, more than any other generation according to Dr. Clare McAndrew’s research. For context, that means a 24-year-old with a modest investment portfolio might have over a quarter of their assets in trading cards, sneakers, or vintage items rather than traditional stocks and bonds. Meanwhile, 42% of Millennials collect physical items as a hobby, compared to just 29% of Baby Boomers. This article examines why younger collectors are entering the market at unprecedented rates, what is driving their interest in trading cards specifically, how this affects card values and market dynamics, and what it means for both new and established collectors navigating this rapidly evolving landscape.
Table of Contents
- Why Are Millennials and Gen Z Dominating New Collector Growth?
- How Trading Cards Became the Gateway Collectible
- What the $500 Billion Market Projection Means for Card Values
- How Younger Collectors Approach Grading and Authentication Differently
- Common Mistakes New Collectors Make in a Hot Market
- Why Community and Content Drive Younger Collector Engagement
- What the Generational Wealth Transfer Means for Future Collecting
- Conclusion
Why Are Millennials and Gen Z Dominating New Collector Growth?
The 36% surge in Millennial and Gen Z investors entering the collectibles space comes down to two primary factors: exclusivity and resale value. Unlike previous generations who often collected purely for nostalgia or personal enjoyment, younger collectors view their purchases through a dual lens of passion and investment potential. This is not purely speculative behavior. Pokémon cards have increased 3,261% over 20 years according to Card Ladder data, providing tangible evidence that collecting can generate real returns. The investment angle matters because younger generations entered adulthood during periods of economic uncertainty. The 2008 financial crisis, student debt burdens, and housing market inaccessibility have made traditional wealth-building paths feel less reliable.
When a hobby you already enjoy can potentially appreciate faster than a savings account, the appeal is obvious. Average Pokémon card values increased nearly 46% in one year during 2025, outperforming both Nvidia stock and the S&P 500’s average 12% annual return. However, Millennials and Gen Z are not monolithic groups with identical motivations. Research indicates they are at least twice as likely as older generations to collect watches, alcohol, rare and classic cars, sneakers, and antiques. This breadth of collecting interests suggests the growth is not simply about chasing returns. There is a genuine cultural shift toward valuing physical objects with history, craftsmanship, or community significance over purely digital or experiential spending.
How Trading Cards Became the Gateway Collectible
Trading cards, particularly Pokémon, have emerged as the entry point for an entire generation of collectors. At GameStop, collectibles including Pokémon and sports cards made up 29% of Q1 2025 sales, actually outselling video game software. This is remarkable for a company built on gaming retail, and it reflects how card collecting has moved from niche hobby to mainstream consumer category. The accessibility of trading cards explains much of their growth. Unlike classic cars or fine art, which require substantial capital and specialized knowledge, a collector can start with Pokémon cards at almost any budget level. A booster pack costs under twenty dollars. A vintage holographic Charizard can cost tens of thousands.
This spectrum allows collectors to participate immediately while having clear aspirational targets. The grading system from companies like PSA and CGC provides standardized quality benchmarks that make valuation more transparent than many collectible categories. The limitation worth noting is that accessibility cuts both ways. Low barriers to entry mean high competition for desirable cards and significant print runs for modern sets. A collector buying sealed product today should not assume the same appreciation trajectory as vintage cards from limited 1990s print runs. The market has matured, pricing has become more efficient, and information asymmetry has decreased. Newer collectors sometimes learn this lesson expensively when modern cards fail to appreciate as anticipated.
What the $500 Billion Market Projection Means for Card Values
The collector item industry is projected to reach $500 billion by 2025, with the global memorabilia market already at $60 billion. The narrower collectibles market segment sits at $2.91 billion in 2024 with projections to reach $4.89 billion by 2033, representing a 5.88% compound annual growth rate. These numbers provide context for why trading card values have risen so dramatically and whether that trajectory can continue. More money entering a market generally pushes prices upward, particularly for scarce items. When 94% of wealthy individuals under 44 express interest in collectibles, that represents massive potential demand.
A PSA 10 Base Set Charizard that sold for a few thousand dollars a decade ago now commands six figures because the buyer pool expanded exponentially while supply remained fixed. The same dynamic applies across vintage Pokémon sets where print runs are known and populations of high-grade examples are documented. The forward-looking question is whether growth rates can persist as the market matures. A 46% annual increase is exceptional by any standard and historically difficult to maintain. New collectors should understand that past performance, even impressive multi-decade trends, does not guarantee future results. The market could stabilize, correct, or continue climbing depending on factors including economic conditions, generational wealth transfer patterns, and whether collecting remains culturally relevant to subsequent generations.
How Younger Collectors Approach Grading and Authentication Differently
The emphasis on grading among younger collectors reflects their investment-oriented mindset. While older collectors often kept cards raw in binders or shoeboxes, Millennials and Gen Z submit cards for professional grading at much higher rates. This creates a permanent record of condition and authenticity that facilitates resale and provides market transparency. The tradeoff is cost and time. Grading fees range from under twenty dollars for economy service taking months to hundreds of dollars for faster turnaround. For a card worth fifty dollars, the economics rarely justify grading.
For a card worth five hundred or more, grading often makes sense both for protection and potential price premium. Younger collectors tend to understand this calculation intuitively because they grew up with eBay sold listings and price guides that clearly show graded premiums. A comparison illustrates the stakes. A raw Near Mint vintage holographic might sell for $200 with buyer uncertainty about exact condition. The same card in a PSA 9 case with verified grade might sell for $400. In PSA 10, perhaps $1,500 or more depending on the specific card. Younger collectors recognize that the grading investment can multiply returns significantly, but they also face the risk of submissions coming back at lower grades than hoped, potentially making the expense a net negative.
Common Mistakes New Collectors Make in a Hot Market
The influx of new collectors creates opportunities for costly errors. The most frequent mistake is buying modern product at retail or above expecting short-term appreciation. When 54% of first-time buyers are entering the market simultaneously, they are often purchasing the same widely available sets. Supply meets or exceeds demand for most modern releases, meaning that sealed box purchased for $150 may be worth $120 in two years rather than $300. Another common error is conflating personal nostalgia with market value. A card that meant everything to you as a child may not command premium prices if millions of copies exist in similar condition. The market does not care about your memories.
It cares about scarcity, condition, and demand. Younger collectors sometimes struggle with this distinction, paying emotional premiums for cards that carry personal significance but limited market desirability. Authentication scams have also increased alongside market growth. Fake grading cases, counterfeit vintage cards, and resealed product all exist in greater quantities as prices rise. New collectors, particularly those making purchases through social media marketplaces or unfamiliar sellers, face genuine risk. The warning here is straightforward: if a deal seems too good, it probably is. Established auction houses and reputable dealers provide protection that peer-to-peer transactions cannot match.
Why Community and Content Drive Younger Collector Engagement
YouTube channels, Twitch streams, and social media accounts dedicated to card collecting have created communities that did not exist for previous generations. A Millennial collector in 2025 can watch a pack opening livestream, discuss market trends in Discord servers, and track price movements through dedicated apps. This infrastructure lowers barriers to knowledge and creates social reinforcement for the hobby.
The content economy also influences what cards become desirable. When a popular creator features a specific card or set, demand can spike immediately. This creates opportunities for informed collectors who anticipate trends and risks for those who chase momentum after prices have already moved. The parasocial relationship between creators and audiences adds an emotional dimension to collecting that manifests in market behavior.
What the Generational Wealth Transfer Means for Future Collecting
The coming decades will see the largest intergenerational wealth transfer in history as Baby Boomers pass assets to Millennials and Gen Z. Some portion of that wealth will flow into collectibles given the stated preferences of younger generations. Whether this sustains current growth rates or whether priorities shift as collectors age remains uncertain.
Historical patterns suggest that collectors often become more active as they reach peak earning years in their 40s and 50s. If current trends hold, the Millennials who started collecting Pokémon cards as children and returned as adults may increase their activity further as they inherit wealth and reach financial maturity. The market in 2035 or 2040 could look substantially larger than today if this cohort maintains its collecting interest through middle age.
Conclusion
The data leaves little room for debate about which age group is growing fastest in collecting. Gen Z and Millennials dominate new market entrants with 94% interest rates, 54% of first-time buyers, and wealth allocation to collectibles exceeding any previous generation. Trading cards, particularly Pokémon, have served as the accessible entry point driving much of this growth, with performance metrics that rival or exceed traditional investments.
For collectors already in the market, understanding these demographic shifts helps contextualize price movements and anticipate future trends. For those considering entry, the key is recognizing that a maturing market with sophisticated participants requires education and patience. The 3,261% twenty-year returns on vintage Pokémon cards represent what happened when a niche hobby attracted generational attention and capital. Whether similar returns await current purchases depends on factors no one can predict with certainty.
