Pop Mart sales surpass over $4 billion as Labubu craze redefines toy retail
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Pop Mart has surged into the spotlight in 2025 with a projected full-year revenue exceeding $4 billion, marking a significant milestone for a company once seen as a niche operator in the toy sector. The surge is driven by the global success of Labubu, a mischievous creature from its “The Monsters” collection, whose meteoric rise has transformed Pop Mart from a regional novelty to an international retail force. In the first half of the year alone, Pop Mart generated $1.93 billion, more than double the same period last year, while net profit rose by nearly 400 percent.
What began as a blind box toy trend in China has evolved into a scalable global model combining collectible culture, direct-to-consumer retail, and savvy IP management. Pop Mart now occupies a position of relevance not just among toy collectors but also within investor portfolios and broader consumer markets.
Financial momentum and rapid expansion
Pop Mart’s numbers offer a compelling narrative. The company expects annual revenue to exceed RMB 30 billion in 2025, with the first half already accounting for nearly half of that figure. Its IP-powered strategy has delivered exceptional results. “The Monsters” series alone accounted for RMB 4.8 billion, a 668 percent increase year on year. With hundreds of original characters in circulation and limited-edition releases creating scarcity-driven demand, Pop Mart is executing a model few competitors have been able to replicate.
Its geographic expansion strategy has also been aggressive. The brand now operates 571 stores and over 2,600 unmanned roboshops across 30 countries and regions. In the Americas, revenue surged more than 1,100 percent year on year, led by rapid store rollouts in cities such as New York, Los Angeles and Toronto. Ten new locations are expected to launch in the United States before the end of the year.
Despite operating in the crowded global toy market, Pop Mart’s valuation has continued to climb. Its current market cap now surpasses legacy players like Mattel and Sanrio, giving it a visibility edge among retail investors who are increasingly watching for unconventional growth stories in consumer markets.
Cultural capital and business risk
Pop Mart’s rise coincides with a generational shift in how consumers engage with physical products. For younger buyers, especially in Asia and increasingly in Western markets, collecting toys is less about nostalgia and more about aesthetics and personal identity. Labubu, with its mischievous expression and art toy credibility, taps into that mindset.
The blind box model fuels this engagement by adding randomness and urgency to the purchasing experience. However, the very design that fuels short term spikes can also invite longer term instability. Regulatory scrutiny has increased in markets such as China, where consumer rights groups have raised concerns about the psychological effect of randomized products on young buyers. In parallel, the company has had to contend with counterfeiting, product safety issues and the need for ongoing innovation to avoid brand fatigue.
That said, Pop Mart has shown signs of maturity in its handling of these challenges. The company maintains a debt-to-equity ratio far lower than the industry average, and its strong cash reserves give it room to test new formats and expand IPs without immediate risk to operations. Its recent introduction of smaller-scale items like phone charms reflects an ability to adapt pricing strategies while staying within brand.
Investment signals and forward movement
Pop Mart’s recent addition to the Hang Seng Index signals a new phase in its corporate trajectory. Institutional investors are now watching the stock more closely, and retail investor interest has grown on the back of significant year-to-date returns. Share prices have jumped between 230 percent and 600 percent depending on the listing, reflecting heightened expectations around both consumer demand and future expansion.
The brand’s move into entertainment and experiential formats adds another layer to its growth story. Pop Mart has begun developing animation properties based on its characters and is evaluating potential entry into theme parks. It also plans to expand its retail footprint further in Europe with a flagship store in Ireland already in progress.
Still, as with any company growing at this pace, expectations need to be balanced against execution. The reliance on a handful of star IPs like Labubu raises questions about creative depth, and the continued rollout of physical stores carries operational and logistical risks as the company steps further from its home market.
As Pop Mart continues its evolution, it will need to show that its appeal can outlast the novelty of mystery boxes and sustain a broader ecosystem of brand engagement. Its performance in the next 12 months will be a key indicator of whether the company is building a long-lasting entertainment platform or riding the last wave of a collectible craze.
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