Pop Mart's Labubu keeps on heavy lifting

Collectible toy giant Pop Mart has deepened its partnership-driven growth strategy through a new Twinkle Twinkle collaboration with McDonald's China. Since launching on May 20, the campaign has drawn long queues, social media buzz and growing resale prices, with some co-branded toys reportedly trading more than 30 percent above their original price on the secondary market.

Si De, chief operating officer of Pop Mart, said the company's intellectual property portfolio continues to demonstrate strong commercial vitality across global markets.

"Our IPs have maintained strong momentum in recent months. Labubu continues to enjoy strong popularity among global consumers," Si said. In the first quarter, collaborative products including Labubu x Sanrio and Labubu x FIFA delivered excellent performance, he said.

The remarks came as Pop Mart recently released its first quarter 2026 financial update, signaling revenue growth of between 75 percent and 80 percent year-on-year. Revenue in the Chinese market surged between 100 percent and 105 percent, supported by a 150 percent to 155 percent increase in online sales.

Despite the strong domestic performance, overseas markets have seen growth slowing sharply compared with the previous year. Revenue in the Americas increased between 55 percent and 60 percent, while Europe and other overseas regions grew 60 percent to 65 percent. Growth in the Asia-Pacific region reached 25 percent to 30 percent.

Executives cautioned investors against overinterpreting short-term fluctuations, and said that the country's trendy toy market remains in a rapid expansion phase as consumers increasingly seek products delivering emotional and cultural value.

Industry analysts expect the sector to maintain robust long-term growth momentum. According to a KPMG report, the country's trendy toy market was projected to reach 82.5 billion yuan ($12.1 billion) in 2025, a year-on-year growth of 40.5 percent. The market is forecast to exceed 213.3 billion yuan by 2030, with a compound annual growth rate of 18.7 percent.

The report found that more than 90 percent of young consumers recognize the importance of "emotional value", while nearly 60 percent are willing to pay a premium for such products and experiences.

Pop Mart recorded a breakthrough year in 2025. Operating revenue reached 37.12 billion yuan, giving the company a domestic market share of more than 30 percent. Its flagship IP Labubu generated revenue of 14.16 billion yuan.

The company is also accelerating expansion into immersive entertainment and lifestyle businesses. On April 30, a new section of Pop Land, its theme park, officially opened in Beijing, featuring upgraded attractions centered around Labubu and Dimoo characters.

"We introduced several large-scale amusement facilities for the first time, and the market response has exceeded expectations," Si said.

He added that Hirono standalone stores are set to expand to Seoul following launches in Shanghai, Bangkok and London.

The company has also expanded its Popop accessories unit's retail stores into six Chinese cities, launched its first Labubu-themed refrigerator and continued development of its first film project.

wangzhuoqiong@chinadaily.com.cn