Pop Mart, the Chinese toy company behind the Labubu character, has reported a nearly 400% surge in net profits for the first half of 2025, driven by the viral popularity of its plush monster toys. This growth is attributed to high demand, particularly in overseas markets, and celebrity endorsements that have fueled a collectible craze.
Who: Pop Mart International Group Limited, a Hong Kong-listed company founded in 2010 by Wang Ning, is the maker of Labubu and other toy series. The toys have gained attention from celebrities such as Lisa from BLACKPINK, Cher, Kim Kardashian, and Marc Jacobs, who have been seen with Labubu products, enhancing their appeal.
What: The company announced that its net profit soared by approximately 400% year-over-year for the first six months of 2025. Specifically, the Monsters series, which includes Labubu, generated around $670 million in revenue, putting it on track to exceed $1 billion by the end of the year. This represents a 688% increase in sales for this series alone.
When: The financial results were released on August 20, 2025, with the news breaking widely on August 20-21, 2025. The announcement was made during an earnings call with analysts, where CEO Wang Ning discussed the company’s performance and future outlook.
Where: Pop Mart is headquartered in Beijing, China, but the surge in profits is largely due to expanded international sales. The toys are sold globally, with significant markets in Asia, Europe, and North America, through both physical stores and online platforms.
Why: The dramatic increase in profits is primarily due to the viral nature of Labubu toys, which are often sold in ‘blind boxes’—mystery packages that encourage collectibility and repeat purchases. Celebrity endorsements and social media exposure have played a key role in driving demand, making the toys a cultural phenomenon.
How: Pop Mart utilizes a business model centered on blind box sales, where consumers purchase boxes without knowing which specific toy they will get, fostering a sense of excitement and community among collectors. This model, combined with limited editions and strategic marketing, has led to rapid sales growth and high profit margins.
Impact: The profit boost has significantly increased Pop Mart’s market valuation, with its Hong Kong-listed shares rising over 570% in the past year. The company is now valued at more than twice that of Mattel, the maker of Barbie, highlighting its dominance in the toy industry. This success has also spurred interest in other collectible toy markets and influenced retail trends.
What’s next: Pop Mart’s CEO has expressed confidence in continued growth, projecting that total revenue could reach $4 billion by the end of 2025. The company plans to expand further into international markets, introduce new product lines, and leverage digital platforms to sustain momentum. However, challenges such as market saturation and competition may arise, requiring ongoing innovation.