Pop Mart, the Chinese toy company behind the “ugly-cute” collectible Labubu figures, has enjoyed a meteoric rise—surging profits by 400% in the first half of this year, and commanding a market value of nearly US$50 billion.

 

That puts it ahead of giants like Lego, Mattel, and Hasbro combined. Labubu dolls—often sold blind, so buyers don’t know which variant they’ll get—are now a social media sensation, embraced by celebs such as Rihanna, BTS, Lady Gaga, and David Beckham. While new Labubu toys retail at about £13, rarity and hype on the secondary market have pushed some examples into the hundreds or thousands of pounds.

 

But beneath the boom, risks loom. Analysts warn that fads fatigue: collector demand could wane just as competitors proliferate, undermining Pop Mart’s ability to command premium prices. The blind-box model, beloved for its surprise factor, is drawing regulatory scrutiny in some jurisdictions—critics liken it to elements of gambling. Moreover, markets may already have baked in the exponential growth—leaving little room for error and exposing investors to corrections or downturns.

 

In short: while investor and fan enthusiasm is riding high now, multiple headwinds suggest that Pop Mart’s Labubu bubble may turn ugly. If you’re holding Labubu shares, or buying rare dolls hoping for big profit, you might want to watch closely for signs of a market turning.

 

 

 

 

Key Takeaways:

 

1. Rapid growth, huge valuation – Pop Mart’s profits up ~400%, now valued around US$50B, outpacing classic toy rivals.

 

 

2. Vulnerabilities mounting – Growing competition, risk of fad burnout, and regulatory pressure on blind-box sales.

 

 

3. Possible over-valuation – Market expectations may be already priced in; potential for sharp correction if demand dips or regulations bite.

 

 

Adapted From:

 

https://observer.co.uk/news/business/article/this-labubu-bubble-will-turn-ugly

 

 

 

 

 

I remember the '90s when it seemed that half the items on EBay were Beanie Babies.  Some of them selling for stupid money. 

 

And I could scroll through every item on EBay in an hour or so...  Back then, onsale.com had a wider selection.

 

PT Barnum was right.