Who Owns Labubu?

Labubu is produced by Pop Mart, which has made commitments to reduce the environmental impact of its packaging and manufacturing. The collectible toy industry faces unique sustainability challenges related to blind box packaging, material usage, and the environmental footprint of collectible toy consumption.

Packaging Initiatives: Pop Mart has stated a goal of making 100% of its packaging recyclable or biodegradable, reporting progress of approximately 75% toward that goal. In 2023, the company reported reducing plastic usage by 40% across its product lines.

Environmental Impact Concerns: Greenpeace East Asia highlighted in a 2024 report that single-use packaging from collectible toys, including Pop Mart products, contributes to over 3,000 tons of waste per year in China alone. This has prompted the company to accelerate sustainability initiatives.

Supply Chain Practices: Pop Mart conducts supplier audits and requires manufacturing partners to comply with environmental regulations and labor standards. The company has committed to sourcing 70% of materials ethically.

Blind Box Ethics: The blind box model has faced regulatory scrutiny in China, with state media criticizing blind box addiction in 2025. People's Daily raised concerns about gambling-like behavior and addictive consumption patterns, causing Pop Mart's stock to dip 6.6%.

Labubu and The Monsters franchise have achieved significant commercial milestones:

• The Monsters joined Pop Mart's "Ten Billion IP Club" in 2025, generating 14.2 billion yuan ($2.1 billion) in revenue
• In June 2025, a 1.2-meter-tall mint-green Labubu sold for $170,000 at the first official Labubu auction in Beijing, setting a record for collectible toy auctions
• Labubu became the first pop toy IP to participate in the Macy's Thanksgiving Day Parade in New York in its century-long history
• Pop Mart's overseas revenue surged 440% in the first half of 2025, with the Americas growing 748% for the full year, driven significantly by Labubu
• The "MONSTERS BY MONSTERS: NOW AND THEN" 10th anniversary global tour kicked off in Shanghai, attracting fans worldwide
• Pop Mart was recognized as one of the world's most popular IPs in 2025 through The Monsters franchise

Cooling Craze and Stock Decline: The Labubu craze has cooled since its August 2025 peak. Pop Mart shares declined 40% from their peak and fell 23% after the March 2026 earnings release, despite revenue surging 185%. HSBC trimmed its revenue growth forecast from 30% to under 24% for 2026, with an expected 11% to 13% cut in 2026-2027 earnings. Investors are concerned about Pop Mart's heavy reliance on a single IP, with 49% of new members recognizing only Labubu 3.0.

Blind Box Regulatory Scrutiny: Chinese state media, including People's Daily, criticized blind box addiction in 2025, raising concerns about gambling-like behavior and addictive consumption patterns. The criticism caused Pop Mart's stock to dip 6.6%. The blind box model faces ongoing regulatory scrutiny in China.

Counterfeit Products: Chinese customs at the Ningbo port seized over 1 million counterfeit Labubu dolls in the first six months of 2025, highlighting the scale of intellectual property violations. Counterfeit products may not meet safety standards and threaten brand reputation.

Environmental Impact: Greenpeace East Asia reported in 2024 that single-use packaging from collectible toys, including Pop Mart products, contributes to over 3,000 tons of waste per year in China alone.

Delivery Issues: Pop Mart issued a rare apology in 2025 after a surge in Labubu orders caused significant delivery delays, with consumers complaining about not receiving orders weeks after placing them.

Scalping and Resale: High demand and limited supply created opportunities for resellers to mark up prices significantly. Pop Mart later ramped up production to curb scalping, and resale prices have since fallen.

IP Lifecycle Risk: Industry analysts have warned that there is no guarantee Labubu's current popularity will remain relevant over the next 5-10 years. Pop Mart is addressing this by developing Labubu into a film character and expanding into other content formats.