The Chinese collectible toy sensation Labubu has officially overtaken global toy icons Barbie and Transformers in total sales, according to a new report by the Financial Times. The plush character, developed by Chinese toymaker Pop Mart, generated nearly $2 billion in revenue last year alone—exceeding the combined annual sales of the two American brands.
This surge has propelled Pop Mart’s valuation to $40 billion, making it the most valuable toy company in the world by market capitalization. The figure eclipses the combined worth of U.S.-based industry giants Mattel (maker of Barbie) and Hasbro (owner of Transformers), underscoring the dramatic shift in global toy market dynamics.
Labubu, a small elf-like plush with a signature grin, is part of Pop Mart’s “blind box” business model, where consumers purchase sealed packages without knowing which variant of the toy they’re getting. The mystery element has driven collector demand and repeat purchases, with many editions selling out within hours and reselling for several times their retail value on secondary markets.
The toy’s popularity has also been fueled by high-profile endorsements from celebrities including Rihanna and Dua Lipa, who have shared Labubu-themed posts on social media. Limited-edition drops, particularly oversized and seasonal variants, continue to draw large crowds at Pop Mart stores in cities including Paris, Seoul, London, and Los Angeles.
Pop Mart operates more than 130 international stores and nearly 200 automated vending machines worldwide. The company’s international expansion has been rapid, with overseas markets contributing around 40% of total revenue in 2024. Analysts expect this growth to continue, driven by demand from adult collectors and Gen Z consumers.
However, the company’s success has also prompted scrutiny. Chinese regulators are reportedly monitoring blind box sales practices amid concerns about their addictive appeal, especially among younger consumers.
The rise of Labubu signals a broader transformation in the toy industry, as traditional players face stiff competition from niche, collectible-focused brands that blend consumerism with pop culture. For the U.S. toy market, Pop Mart’s momentum represents both a commercial disruption and a cultural shift.
