I just saw the documentary "Cuddle" from 2015.
There's a fairly long summary on IMDB. There are lots of interview excerpts, and many references to (and a few videos of) snuggle parties. Some of it is a bit sad, like the Snuggle House closing down. It was interesting though. I really loved the song at the end:
Close by Aaron Zimmer and Donna Britton
Tired of living without touch
Do I expect too much?
With no connection in my life
It's an uphill climb
So will you hold me?
(chorus)
I wanna get close to you again
Give me some time to drink you in
We'll go somewhere we've never been
Discover a brand new road
Together when we're close ...
Human beings without touch
Will surely die unloved
As out perceptions start to change
We learn a different way
When you hold me
(repeat chorus x 2)
(Tell me if you think I got any of the words wrong)