Labubu Dolls: The Unexpected Collectible Taking Over the U.S. Market — What Investors Need to Know Now
If you’ve recently spotted quirky plush monster dolls dangling from purses, strollers, or belt loops in major U.S. cities, you’re witnessing a cultural and commercial phenomenon that’s reshaping the collectibles market. Meet Labubu — the plush toy brand that has skyrocketed from niche Chinese favorite to global sensation practically overnight, and is now driving explosive growth for its parent company, Pop Mart.
The Labubu Craze: More Than Just a Toy
Labubu dolls, characterized by their distinctive perky ears and pointy teeth, have transcended the typical toy fad. What makes them unique? Their blend of collectible allure, fashion accessory status, and social media virality. Unlike traditional toys, Labubus have become a symbol of status and personal style, especially among young adults and influencers.
Take Shay Tomi, a 28-year-old finance professional from San Francisco, who noticed the dolls popping up everywhere during her travels and online. She now owns multiple Labubus, complete with miniature outfits, and has even converted her boyfriend into a fan with custom basketball jerseys for their dolls. This kind of personal engagement illustrates the brand’s deep cultural penetration, far beyond the typical children’s toy market.
Explosive Growth and Market Implications
Pop Mart’s plush toy segment, including Labubu, saw a staggering 1,200% sales increase from 2023 to 2024. In North America alone, revenue surged over 550% in that period, with a jaw-dropping 900% jump in Q1 2025 compared to the previous year. According to Goldman Sachs, this growth far outpaces global averages, signaling a seismic shift in Pop Mart’s consumer base—from predominantly China to a balanced global presence. Bank of America forecasts nearly half of Pop Mart’s revenue will come from outside China in 2025.
For investors, this shift is critical. Pop Mart’s market capitalization now dwarfs established U.S. toymakers like Hasbro and Mattel. While Pop Mart’s revenue from Labubu ($423 million in 2024) still trails Mattel’s Barbie ($1.35 billion), the rapid growth trajectory suggests Labubu could become a major player in the collectibles space.
The Power of Celebrity and Social Media
Celebrity endorsements have turbocharged Labubu’s popularity. K-pop star Lisa from Blackpink, Rihanna, and Olympic champion Simone Biles have all been seen flaunting these dolls. This star power, combined with viral social media content such as TikTok videos showcasing doll customizations and unboxings, has created a feedback loop of demand and cultural cachet.
Brands have also jumped on the trend. United Airlines and Olive Garden have playfully integrated Labubus into their marketing, highlighting the dolls’ crossover appeal beyond the toy aisle.
What’s Driving the Trend? Exclusivity, Affordability, and Emotional Connection
Chris Byrne, an independent toy analyst, calls Labubu “the toy fad that wasn’t” because it has morphed into a fashion accessory rather than a fleeting toy craze. The dolls’ limited availability—often selling out quickly—creates a sense of exclusivity akin to luxury goods but at a fraction of the price. This makes Labubus an appealing status symbol in uncertain economic times, where consumers seek affordable indulgences with perceived collectible value.
Labubus also tap into emotional connections. Owners describe their dolls as “ugly-cute,” akin to their beloved pets, which fuels a unique attachment. This emotional resonance, combined with the “blind box” model that adds a layer of surprise and collectibility, sustains consumer interest and repeat purchases.
What Investors and Advisors Should Do Differently Now
-
Monitor Pop Mart Closely: With its rapid North American expansion and shifting revenue base, Pop Mart represents a growth stock in the collectibles space worth watching. However, investors should be cautious of valuation spikes and potential market corrections, as seen in recent pullbacks.
-
Look Beyond Traditional Toy Companies: The collectibles market is evolving rapidly. Emerging brands like Pop Mart are disrupting legacy players by blending fashion, social media, and exclusivity. Diversifying exposure to companies innovating in this space could yield outsized returns.
-
Capitalize on Cultural Trends: Investors should track cultural phenomena and social media trends as early indicators of emerging consumer products. Labubu’s rise exemplifies how viral appeal can translate into significant revenue growth.
-
Watch for Secondary Market Growth: While the resale market for Labubu hasn’t exploded like Beanie Babies, it’s poised for growth as scarcity and collector interest rise. This could create new revenue streams or investment opportunities in related platforms.
What’s Next for Labubu and Pop Mart?
Pop Mart’s aggressive store openings in key U.S. cities, combined with celebrity endorsements and social media buzz, suggest the Labubu craze is far from over. Analysts predict continued expansion into Europe and North America, potentially doubling international revenue share in the next 2-3 years.
However, sustainability will hinge on Pop Mart’s ability to innovate product lines, maintain exclusivity, and avoid oversaturation. Investors should watch for new collaborations, limited editions, and technological integrations like augmented reality experiences that could deepen consumer engagement.
Unique Insight: The “Affordable Luxury” Play in Collectibles
Labubu’s success underscores a broader investment theme: the rise of “affordable luxury” collectibles that blend emotional appeal with exclusivity at accessible price points. This trend is reshaping consumer spending, especially among younger demographics wary of high-cost luxury goods but eager to express identity and status.
For financial advisors, this calls for rethinking client portfolios to include emerging consumer brands that capitalize on this niche. For investors, it means looking beyond traditional sectors and tapping into cultural zeitgeists that drive rapid market shifts.
In conclusion, Labubu is not just a toy—it’s a cultural and financial phenomenon signaling a new era in collectibles investing. By understanding the dynamics behind this trend, investors and advisors can position themselves to benefit from the next wave of disruptive consumer brands. Stay tuned as we continue to track Pop Mart’s journey and the evolving collectibles market with exclusive insights you won’t find anywhere else.
Source: Labubus are getting U.S. consumers hooked on Pop Mart