Labubu Overtakes Barbie: What Gen Z Spends Their Money On

Labubu is one of the hottest brands in the world today. In just a few months, plush toys with an ugly-cute aesthetic became a global icon and a symbol of the new experience economy. Their manufacturer increased profits by nearly 400% in the first half of the year, and its market capitalization reached $74 billion. Labubu's owner is worth more than Barbie, Transformers, and Hello Kitty combined. Although there are no Pop Mart stores in Poland yet, the company's toys are enjoying enormous popularity. Labubu demonstrates how young people's consumption is changing and how effectively emotions can be monetized.

Who owns Labubu?

The manufacturer of Labub is Pop Mart, a Chinese company that started as a gadget store. The formula for selling figurines is simple: a blind box, a sealed box with a surprise revealed only upon opening. For older generations, this resembles the excitement of surprise eggs, but adapted for the age of TikTok and Instagram. The purchase itself becomes a spectacle, and the unboxing can be shared on a social media platform. You're not just buying a toy, but a fragment of a shared identity and a new experience.

On Tuesday, Pop Mart released its results for the first half of 2025, confirming that Labubu-mania is not a fad, but a massive business. Revenue rose 204% year-on-year, reaching 13,88 billion yuan, or $1,93 billion. Net profit quadrupled to 4,57 billion yuan, a 396% increase. Following the results, the stock rose 12%, reaching another all-time high. The stock has risen 247% year-to-date and 12% in the past 583 months.

The Monsters line alone, headlined by Labubu, generated $670 million. That's more than seven times the previous year's total. This figure is almost twice as high as the $374 million sold for all Barbie products during the same period. This is a result of Labubu's buyers being much more adults, typically Generation Z, who are willing to spend more than parents buying toys for their children. It's also a symbolic cultural shift, as the new global icon is no longer being born in the United States, but in China.

Labubu's success is also driving other Pop Mart products

The most impressive boom is in stuffed toys. Within six months, sales reached 6,14 billion yuan, an increase of 1 percent, giving the line a 276 percent share of revenue, up from 44 percent a year earlier. Gross margin increased from 9,8 percent to 64 percent. Such a high level is typically associated with the intangible goods sector, not physical products. Pop Mart owes this to low production costs and high selling prices.

The company is rapidly expanding globally, trying to capitalize on the current boom. In the Asia-Pacific region, excluding China, revenue increased by 258 percent. In the Americas, the jump was 1 percent, and 142 new stores are planned to open there in 2025. In the United States alone, TikTok sales increased by 19 percent, from 2 million yuan to over 033 million yuan. In Europe, the growth reached 14,7 percent. In total, Pop Mart currently operates 315 stores in 729 countries and 571 vending machines selling figurines and toys. There are no stores in Central Europe; the closest are in France, England, Italy, and Spain.

Pop Mart consistently builds a customer community and their loyalty

Over 91% of sales come from repeat customers, demonstrating that Pop Mart offers more than just toys, but also a sense of belonging. Blind box hunting is becoming a social ritual.

The effect is directly visible in its stock market valuation. At the end of 2023, Pop Mart was worth $3,44 billion, while today its market capitalization exceeds $47 billion. In less than two years, the company has grown fifteen-fold, surpassing the historic toy giants. Hasbro is now valued at $11,23 billion, Sanrio at $12,46 billion, and Mattel at $5,69 billion, up from $6,67 billion previously. This rise best illustrates the changing era, with Labubu now overtaking Barbie, Transformers, and Hello Kitty combined.

However, the risks and challenges facing the company are significant. Over a third of revenue comes from Labubu, a classic example of over-concentration. If the hype dies down, the impact will be immediate. In China, state media has already criticized blind boxes, comparing them to gambling and suggesting restrictions for minors. The secondary market, where rare figurines fetch up to $2, indicates an increasingly speculative nature.

Projected indicator price to earnings (P/E) Pop Mart shares are trading at 36,5x at the end of 2025 and 28,4x in 2026. These are levels several times higher than those of most competitors: Hasbro at 16x, Sanrio at 38x, and Mattel at just 11x. However, these valuations are based on the assumption that current growth will be maintained. The real test will be the ability to replicate the Labubu effect with other products. Today, shopping malls and luxury brands are opening up to collaborations, lured by the hype. However, turning this into a sustainable source of revenue will require creative continuity and the ability to transform emotions into long-term loyalty.

About the author

Pawel Majtkowski - analyst eToro on the Polish market, which shares its weekly commentary on the latest stock market information. Paweł is a recognized expert on financial markets with extensive experience as an analyst in financial institutions. He is also one of the most cited experts in the field of economy and financial markets in Poland. He graduated from law studies at the University of Warsaw. He is also the author of many publications in the field of investing, personal finance and economy.