Pop Mart Sales Slide Up to 50% as Labubu Mania Runs Out of Steam

Pop Mart's global sales fell by as much as 50% in the three months to the end of September, and US revenue dropped by at least 70%, according to figures the Beijing-based company recently reported. The collapse marks a sharp reversal for a craze that once made Pop Mart worth more than US toy giants Hasbro and Mattel combined.

The labubu doll, launched in 2019, became the company's most successful toy line. Collectors paid $15 (£11) or more for sealed "blind boxes" containing mystery versions of the quirky monsters, and often far more on the resale market. One fan paid more than $150,000 for a human-sized Labubu. Pop Mart briefly pulled the toys from its UK shops after reports of customers fighting over them, and celebrities including Kim Kardashian and Blackpink's Lisa turned the dolls into fashion statements.

Now the frenzy is fading, and the collectors who fueled it are changing their behavior.

What do the numbers say?

Pop Mart listed in Hong Kong in 2020 and remains one of the world's most valuable toymakers, worth nearly $24bn. But its shares have fallen by more than 50% from last year's peak. The company now runs 500 shops in more than 30 countries plus 2,000 vending machines worldwide.

Pop Mart declined to comment on share price moves and did not respond to questions about falling sales.

Investors worry the company's global success was a viral moment rather than sustainable growth driven by long-term customer loyalty, says Samer El Hajjar, a marketing lecturer at the National University of Singapore. A key part of Labubu's original allure was scarcity: fans repeatedly bought blind boxes to land the version they wanted, El Hajjar says. That scarcity is gone.

Why did exclusivity fade?

Ashley Dudarenok of China research firm ChoZan says the sense of exclusivity faded as Pop Mart ramped up production to meet demand. Mega-fan Ensito, a former North Carolina tech worker who left his job in 2024 to create Labubu content full-time, confirms it from the shop floor.

"Now it doesn't feel that way. I walk into a Pop Mart and there's a whole series of Labubus sitting there," he says. Ensito has spent more than $50,000 (£37,000) building a collection of more than 400 Labubus, a figure he tells the BBC he's "embarrassed to say". He even had custom Labubu-like jagged teeth made by a dentist to wear at events.

His once-viral posts have stalled. "Those videos used to be able to hit 10,000 really quickly but I'm struggling to do that now," he says. Ensito has shifted his focus to Hello Kitty and squishies.

Who is taking over the shelves?

Rivals are filling the space. Sonny Angel cherub dolls and glow-in-the-dark Smiski figurines are flying off shelves, and My Little Pony and KPop Demon Hunters now come in blind boxes too. Miniso, founded in Guangzhou, sells blind-boxed Disney and Marvel characters in more than 8,000 shops globally.

"Consumers aren't particularly concerned about where the brand comes from," Miniso executive Vincent Huang said earlier this year. "They're more focused on the shopping experience - the designs, value for money, and enjoyment."

Analyst Boustani points to Sanrio, the Hello Kitty brand owner that posted record earnings in the year to March, as holding a clear advantage in building enduring characters.

Can Pop Mart build a franchise?

Pop Mart has invested heavily in brand-building, opening a theme park in Beijing and announcing a Labubu film, following the playbook of Disney or Lego. But unlike Disney, which sells a story before it sells a toy, Pop Mart is working in reverse, Dudarenok says. "The real test for next year is whether Pop Mart can make people love a character without a celebrity holding it."

Collectors are already recalibrating. Melbourne creator Lawrence Yu, whose Labubu unboxing clips once drew up to a million views, says he'll be "more selective" before adding to his roughly 50 dolls. "People go crazy and then it fizzles," he says. Canada's Clara Barbero calls Labubus a "dead trend" but is "curating my collection more and only buying what I see myself liking for the next few years".

Devoted fans remain. Liverpool's Hedy Khaled, who owns 70 Pop Mart figurines, argues falling sales don't mean Labubus have lost their appeal — they just separate trend-chasers from "real fans". Whether that core base is big enough to sustain a $24bn company is the question investors will press in the year ahead.