Labubu craze cools as Pop Mart sales fall sharply
Pop Mart's global sales dropped up to 50% year-on-year as collector enthusiasm for the blind-box dolls fades, especially in the US.
At a glance
- Pop Mart's global sales fell by as much as 50% in the three months to September compared with the previous year.
- US revenue dropped by at least 70%, showing the Labubu craze is cooling outside mainland China.
- Collectors and analysts say the blind-box dolls have lost some of their exclusivity as rivals gain popularity.
Pop Mart's Labubu dolls, once a global blind-box sensation, are losing momentum as sales fall and collectors shift to other trends.
The Beijing-based toymaker reported that global sales for the three months to the end of September dropped by as much as 50% compared with the previous year. Revenue in the United States fell by at least 70%, signaling a steep cooldown outside mainland China.
The craze made Labubu Pop Mart's most successful toy line since its 2019 launch. Collectors bought sealed mystery boxes, often paying $15 or more, and resale prices climbed far higher. At its peak, Pop Mart was worth more than US toy giants Hasbro and Mattel combined.
Now, some collectors say the exclusivity has faded. Ensito, a North Carolina fan who left his tech job in 2024 to cover Labubu full-time, has spent more than $50,000 on over 400 dolls. He says his social media posts, which once reached 10,000 views quickly, now struggle to gain traction, and he has turned to Hello Kitty and squishies.
Falling sales and rising competition
Pop Mart, worth nearly $24 billion and listed in Hong Kong in 2020, operates more than 500 shops across 30 countries and 2,000 vending machines worldwide. Its shares have fallen by more than 50% from last year's peak.
Analysts say the company may have mistaken a viral moment for sustainable growth. As production increased, the sense of scarcity that drove demand diminished. Rivals such as Sonny Angels, Smiski, and Miniso's blind-boxed Disney and Marvel characters are gaining ground.
Devoted fans remain
Not everyone has moved on. Melbourne creator Lawrence Yu, who owns about 50 Labubus and has spent roughly $1,400, says he will be more selective. Hedy Khaled of Liverpool, who has 70 Pop Mart figurines, argues that real fans remain attached even as the hype cools.
Pop Mart declined to comment on its share price and did not respond to questions about falling sales.
Source: BBC Business.
Questions and answers
- Why are Labubu sales falling?
- Pop Mart reported global sales down as much as 50% year-on-year for the three months to September, with US revenue down at least 70%, as collector enthusiasm fades.
- What is Labubu?
- Labubu is a blind-box collectable doll line launched by Beijing-based Pop Mart in 2019, featuring quirky fluffy monsters sold in sealed mystery packages.
- Is Pop Mart still valuable?
- The company is worth nearly $24 billion and remains one of the world's most valuable toymakers, though its shares have fallen more than 50% from last year's peak.
