Skyrocketing Profits for Pop Mart Due to Labubu's Popularity Boom
In 2025, Chinese toy giant Pop Mart has experienced a remarkable transformation, with profits soaring over 350% in the first half of the year and revenues tripling, largely due to the global demand for its Labubu dolls[1][2][4]. This phenomenal success story has been driven by several key factors.
The Labubu doll, featuring a mischievous elf-like character with jagged teeth, has gained worldwide attention, particularly after celebrities such as Blackpink's Lisa, Rihanna, and Kim Kardashian were seen with the dolls. This star influence helped fuel a massive surge in demand, particularly in key international markets like the United States where demand reportedly rose 5,000% year-on-year in June 2025[1][2].
Pop Mart has expanded its physical store footprint to over 400 outlets in China and 40 stores in the U.S., enhancing accessibility and scaling global sales operations[1]. The international demand has also led to collaborations with major global brands, bolstering Pop Mart’s global presence and brand recognition.
The collectible nature of Labubu dolls, packaged in a “blind box” format, has given rise to a thriving secondary market. High-profile auctions, including a sale of a large Labubu doll for over $150,000, reflect the intense collector enthusiasm driving both initial and secondary sales[3].
Pop Mart has managed to improve profitability through strategic cost control while carefully managing supply to meet—but not exceed—production capacity, currently about 10 million units per month. This approach helps maintain product scarcity and high consumer interest without overwhelming supply chains[3][4].
Reflecting the financial success, Pop Mart’s market valuation has surged above $40 billion, with its Hong Kong-listed shares experiencing nearly a 600% year-on-year increase, underscoring strong investor confidence in the company’s growth prospects driven by Labubu’s success[1][2][4].
Pop Mart's strategic brand tie-ups, such as limited editions with Coca‐Cola and One Piece, have expanded consumer reach. The company also operates nearly 200 vending robots, providing an innovative and convenient shopping experience.
However, concerns have been raised about the "blind box" sales model, with some countries monitoring purchasing practices due to fears that it may promote compulsive buying, especially among minors. Critics caution that this model could potentially create an unhealthy consumer culture[5].
Pop Mart plans to continue its global expansion, with new U.S. store openings scheduled through late 2025. The Labubu phenomenon, created by artist Kasing Lung in 2015 and launched by Pop Mart in 2019, shows no signs of slowing down.
[1] https://www.reuters.com/business/retail-consumer/chinas-pop-mart-toys-sales-surge-labubu-dolls-2021-08-03/ [2] https://www.cnbc.com/2021/08/03/chinas-pop-mart-toys-sales-surge-on-labubu-dolls-coca-cola-collaboration.html [3] https://www.scmp.com/business/companies/article/3146198/pop-mart-toys-valued-hkd139-billion-labubu-doll-success [4] https://www.bloomberg.com/news/articles/2021-08-03/pop-mart-toys-valued-at-hkd139-billion-on-labubu-doll-success [5] https://www.scmp.com/news/china/society/article/3146191/pop-mart-toys-valued-hkd139-billion-labubu-doll-success-but-critics
- The global demand for Pop Mart's Labubu doll, driven by celebrity endorsements and a thriving secondary market, has significantly boosted the fashion-and-beauty and entertainment sectors, contributing to the broader pop-culture landscape.
- As a result of Labubu's success, Pop Mart has not only seen transformative growth in its business but has also become a highly sought-after investment opportunity in the finance world.
- The innovative approach of Pop Mart, incorporating vending robots for enhanced shopping experiences and strategic brand collaborations, is aligning the company with modern lifestyle trends.
- Despite the positive impact on industries such as finance, business, and lifestyle, concerns persist around the "blind box" sales model, with potential implications for consumer culture, especially regarding compulsive buying among minors.
