Shares of Pop Mart rose over 8% in Hong Kong on August 20, 2025, after the Chinese toymaker reported a 396.5% surge in net profit for the first half of 2025.

Pop Mart, based in Beijing, said net profit rose to 4.6 billion yuan (US$644 million), while revenue jumped 204.4% year-on-year to 13.9 billion yuan (US$1.95 billion).

The company’s growth was driven by strong global demand for its Labubu plush toys, which are sold in “blind boxes” that reveal the character only after purchase.

Pop Mart’s stock has climbed more than 200% since the start of 2025, according to LSEG data.

In June, Chinese state media called for stricter rules on blind-box toys for children, including age checks and parental consent for online sales.

Morningstar analyst Jeff Zhang noted that it is uncertain how long Pop Mart’s key brands will remain popular as consumer preferences can shift quickly.

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🔗 Source: CNBC

🧠 Food for thought

1️⃣ International expansion serves as regulatory hedge against domestic restrictions

Pop Mart’s explosive growth comes as the company rapidly diversifies away from its home market amid mounting regulatory pressure.

The company’s North American sales surged over 550% in 2024, while its broader international expansion strategy aims to reduce reliance on mainland China from 61% of revenue in 2024 to just 30% in the next decade2.

This geographic diversification appears strategic given China’s 2023 ban on blind box sales to children under eight and ongoing state media criticism of the industry’s potential to create “addiction” among youth34.

The timing is particularly relevant as Chinese regulators have intensified scrutiny, with state media calling for stricter age verification and parental consent measures for mystery box purchases1.

Pop Mart’s international pivot mirrors other Chinese companies that have expanded abroad when facing domestic regulatory headwinds, turning potential domestic constraints into global growth opportunities.

2️⃣ Adult collectors drive toy market expansion beyond traditional demographics

Pop Mart’s success reflects a broader shift in the global toy industry, where adult consumers are becoming the primary growth engine.

The company’s core demographic of 18-35 year old urban professionals aligns with the “kidult” trend that’s driving 6% growth in the US toy market in 2025, with sales to adults aged 18 and older increasing 18%56.

This adult-focused strategy helps insulate Pop Mart from regulatory concerns about children, as 75% of their customers are female professionals who purchase collectibles for themselves rather than minors5.

The global collectibles market reached $14.25 billion in 2024, demonstrating substantial demand from adult consumers willing to spend premium prices on items like Pop Mart’s $30 Labubu keychains31.

This demographic shift represents a fundamental change in how toy companies approach their business, moving from child-focused products to adult collectibles that command higher margins and face fewer regulatory restrictions.

Recent Pop Mart developments

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