The news: Labubu is well on its way to being a $1 billion business for maker Pop Mart.

• The retailer’s Monsters IP, which includes Labubu, generated RMB 4.81 billion ($671 million) in the first half of 2025, a staggering 668% increase YoY.
• The company expects to keep the momentum going with the release of a “mini Labubu” small enough to hang on mobile phones, as well as other iterations to keep fans captivated.

A worldwide phenomenon: So far this year, Labubus have outsold Mattel’s Barbie and Hot Wheels franchises—a testament to how completely the craze has engulfed shoppers around the world, as well as to Pop Mart’s well-honed tactics for maximizing attention and encouraging spending.

• Celebrity endorsements are feeding Labubu mania. While the dolls have been around since 2019, the craze only reached epic proportions in the past year, when celebrity style icons like Blackpink’s Lisa and Rihanna began publicly toting the toys. These unofficial endorsements are helping to keep Labubus in the public consciousness, while the growing array of celebrity fans are giving Pop Mart a steady stream of free publicity.
• Pop Mart is using scarcity and blind boxes to fuel excitement. The difficulty of getting one’s hands on a Labubu is driving shoppers to line up for hours at Pop Mart stores. At the same time, the element of chance associated with the blind boxes encourages customers to make multiple purchases in order to unearth rarer dolls.

It helps that as indulgences go, a single Labubu is relatively inexpensive: Blind boxes can retail for as little as $27.99, yet can be resold for significantly more—making them an appealing investment for shoppers looking to indulge in retail therapy.

Our take: While the history of toy fads suggests that the Labubu craze will soon fade, it could be extremely lucrative in the short term—and not just for Pop Mart. Although the retailer is fiercely protective of its IP, plenty of brands and retailers would be happy to benefit from a temporary Labubu bump.

• Pop Mart could look to fellow plushie toymaker Jellycat for inspiration: The latter recently partnered with Space NK on a bag charm, which will be available exclusively at the beauty retailer’s stores.
• Retailers can also find workarounds by partnering with resellers. For example, shoppers on Walmart’s marketplace can now buy Labubus thanks to the retailer’s deal with StockX.

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