Labubu is currently one of the hottest brands in the world. Plush toys in the ugly-cute aesthetic have, within just a few months, become a global icon and a symbol of the new experience economy. In the first half of the year, their producer boosted profits by nearly 400%, while its market capitalization reached USD 74 billion. The owner of Labubu is now worth more than Barbie, Transformers, and Hello Kitty combined. Although Pop Mart stores are not yet present in Poland, the company’s toys enjoy massive popularity here. Labubu illustrates how young consumers are changing their habits and how effectively emotions can be monetized.
The Pop Mart Phenomenon
Labubu is produced by Pop Mart, a Chinese company that started out as a gadget store. The sales formula is simple: the blind box — a sealed package with a surprise toy inside, revealed only upon opening. For older generations, this recalls the thrill of Kinder Surprise eggs, but adapted to the TikTok and Instagram era. The purchase itself becomes a performance, with the unboxing often showcased on social media. Buyers aren’t just purchasing a toy, but a piece of shared identity and a new kind of experience.
On Tuesday, Pop Mart released its results for the first half of 2025, confirming that Labubu-mania is no passing fad but a massive business. Revenues rose 204% year-on-year, reaching RMB 13.88 billion (USD 1.93 billion). Net profit quadrupled to RMB 4.57 billion, up 396%. Following the announcement, the share price jumped 12% to another all-time high. Since the start of the year, shares have surged 247%, and over the past 12 months, a staggering 583%.
Labubu Outsells Barbie
The Monsters line, led by Labubu, generated USD 670 million — more than seven times higher than a year ago. This figure is nearly double Barbie’s sales for the same period (USD 374 million). The difference comes from the fact that Labubu buyers are mainly adults, particularly Gen Z consumers, who are willing to spend more than parents buying toys for children. This marks a symbolic cultural shift — the new global icon is no longer born in the U.S., but in China.
Other Pop Mart products are also benefiting from the boom, especially plush toys. In just six months, plush sales reached RMB 6.14 billion, up 1,276%, giving the category a 44% share of revenues compared with 9.8% a year earlier. Gross margin rose from 64% to 70.3% — a level usually associated with intangible goods, not physical products. Pop Mart owes this to low production costs and high selling prices.
Explosive Global Expansion
The company is rapidly scaling its global footprint to maximize the current boom. Revenues outside China in the Asia-Pacific region rose 258%. In the Americas, they jumped 1,142%, with 19 new stores opened in 2025. In the U.S. alone, TikTok sales soared 2,033%, from RMB 14.7 million to more than RMB 315 million. In Europe, growth reached 729%.
Altogether, Pop Mart now operates 571 stores across 18 countries and 2,597 vending machines selling toys and figurines. In Central Europe there are no stores yet; the closest are located in France, the UK, Italy, and Spain.
The company consistently focuses on community building and customer loyalty. More than 91% of sales come from repeat buyers, showing that Pop Mart is selling not just toys, but a sense of belonging. Hunting for blind boxes has become a social ritual.
From Underdog to Global Giant
The market value reflects this success. At the end of 2023, Pop Mart was worth USD 3.44 billion; today, its capitalization exceeds USD 47 billion. In less than two years, the company has grown fifteenfold, overtaking historical toy-making giants. Hasbro is currently valued at USD 11.23 billion, Sanrio at USD 12.46 billion, and Mattel at just USD 5.69 billion (down from USD 6.67 billion). This meteoric rise shows a new era — one where Labubu surpasses Barbie, Transformers, and Hello Kitty combined.
Risks and Challenges
The challenges, however, are serious. More than one-third of revenues come from Labubu, making this a textbook case of overconcentration. If the hype fades, the impact will be immediate. In China, state media have already criticized blind boxes, comparing them to gambling and suggesting restrictions for minors. The secondary market, where rare figurines fetch up to USD 2,000, highlights the increasingly speculative nature of the trend.
Pop Mart’s forward P/E ratio is projected at 36.5x for 2025 and 28.4x for 2026 — several times higher than most competitors: Hasbro at 16x, Sanrio at 38x, and Mattel at just 11x. These valuations assume continued growth. The real test will be whether Pop Mart can replicate the Labubu effect with other products. Shopping malls and luxury brands are eager to collaborate, drawn by the hype, but turning it into a long-term revenue stream will require creative continuity and the ability to transform emotions into lasting loyalty.
Author: Paweł Majtkowski, Analyst at eToro Poland
Source: CEO.com.pl
