Labubu Mania drives Pop Mart’s profit surge

July 15, 2025 (MLN): Chinese toymaker Pop Mart International Group is forecasting a dramatic threefold increase in first-half revenue and an even bigger surge in profit, driven by the soaring global popularity of its Labubu plush toys.

The company announced on Tuesday (July 15) that it expects at least a 350% gain in profit and a minimum 200% increase in revenue for the six months ended June 30.

Labubu — a plush, pointy-eared, serrated-tooth monster, has become the centre of a global collectibles craze, with celebrities like Rihanna and BlackPink’s Lisa publicly showing off the toys.

In June, a human-sized version of the toy fetched $150,000 at an auction in Beijing, as Bloomberg reported.

Pop Mart cited not only the increased global recognition of its brand but also cost optimisation and expense control as key factors behind the improved profitability.

Initially a hit among young Chinese consumers, the Labubu phenomenon has expanded internationally, with fans queuing for hours to get their hands on the cult collectibles.

The explosive demand has turned Pop Mart into a company valued at more than $40 billion, with its Hong Kong-listed shares rising 588% over the past year.

The company’s rare breakthrough into Western markets has secured it one of the highest retail profit margins among Chinese firms with global presence.

Pop Mart’s gross profit margin reached nearly 67% last year, significantly ahead of Miniso Group Holding’s 45%, and well above the roughly 20% margins posted by consumer electronics giant Xiaomi and EV leader BYD.

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