Labubu Craze Drives Pop Mart Profits Up 350% as Market Questions Longevity

Chinese toy giant Pop Mart has announced a staggering 350% surge in profits for the first half of 2025, driven by the global phenomenon of its Labubu collectible dolls. This significant financial growth comes as market observers and social media users, like "disaster femmes, inc.

," increasingly question the sustainability of the trend, asking, "when do we think the labubu bubble - the 'labubble', if you will - is going to burst." The elf-like figures, known for their "ugly-cute" aesthetic and "blind box" sales model, have transcended niche collecting to become a mainstream cultural and fashion accessory.

Pop Mart's revenues more than tripled during the same period, pushing its market valuation beyond $40 billion and seeing its Hong Kong stock exchange shares jump nearly 600% in the past year. Founder Wang Ning has joined China's top billionaires, reflecting the immense commercial success of the collectible toy market. In 2024, Labubu dolls alone contributed approximately $423 million to Pop Mart's global revenue, marking a 729% increase from the previous year.

The dolls' popularity is largely fueled by their unique "blind box" sales strategy, which creates a thrill of discovery and scarcity, alongside aggressive celebrity endorsements from figures like Blackpink's Lisa, Kim Kardashian, and Rihanna. Social media platforms, particularly TikTok, have amplified the craze with millions of unboxing videos and fan content. This viral engagement has transformed Labubu from a toy into a coveted fashion statement and status symbol.

The surging demand has led to a booming secondary market, where standard $10 dolls can fetch hundreds, and rare editions, including a human-sized Labubu, have sold for as much as $150,000 at auction. US sales of Labubu reportedly soared by 5,000% year-on-year in June 2025, leading to supply shortages and even reports of altercations at physical stores in some regions. Pop Mart is actively expanding its international footprint, aiming for 65% of its revenue from overseas operations by 2027.

Despite the unprecedented growth, the "Labubu bubble" concern persists, fueled by comparisons to past collectible fads like Beanie Babies. The "blind box" model has drawn criticism for encouraging gambling-like behavior, and Chinese authorities have begun scrutinizing the industry for its potential addictive nature, particularly among minors. Additionally, a significant market for counterfeit "Lafufu" dolls has emerged, and some long-time collectors express fatigue with the rapid commercialization and perceived saturation of new releases.

While Pop Mart continues to demonstrate robust financial performance and ambitious global expansion plans, the underlying market dynamics suggest a polarized landscape. The company faces the challenge of sustaining consumer excitement through continuous innovation while navigating regulatory pressures and managing the inherent risks of a trend-driven market. The question of whether the "Labubu bubble" will burst remains a key point of discussion among collectors and industry analysts alike.