Is the Labubu Craze Over — and Why Pop Mart’s Stock Has Plummeted?

For years, Pop Mart International Group Ltd. rode a wave of global hype built largely on its collectible Labubu figures — quirky “designer toy” blind-box dolls that once seemed unstoppable. From long store queues to soaring resale values and celebrity endorsements, Labubu became a cultural phenomenon.

But as 2025 draws to a close and 2026 begins, there’s growing evidence that the Labubu craze is cooling — and that’s hitting Pop Mart’s stock in a big way.

Here’s the full story: what’s happened, what numbers tell us, and what it means for the future.

📉 A Dramatic Slide in Stock Price

Pop Mart’s Hong Kong–listed shares have seen significant volatility since mid-2025. After hitting a record peak in August, shares have fallen sharply:

• The stock lost about 25–30% from its late-August highs over subsequent months as investor sentiment cooled. (The Straits Times)

• At one point, analysts observed that the frenzy had wiped out nearly US$13 billion in market value in a matter of weeks. (The Economic Times)

• As of late 2025, shares were trading at a significant discount from their peak, reflecting renewed investor concerns about demand and long-term growth. (Bloomberg)

The turbulence isn’t limited to stock charts. Pop Mart has also faced price declines in secondary markets — a key signal of fading speculative interest. (The Straits Times)

🧸 What Fueled the Craze — And What’s Changing

🚀 The Rise of Labubu and Blind-Box Culture

Labubu dolls, part of Pop Mart’s The Monsters series, were a breakout hit thanks to:

• Blind-box gamification — buyers buy without knowing what’s inside, driving repeated purchases.

• Scarcity and unboxing culture, amplified on TikTok and Instagram.

• Celebrity sightings — figures appearing in posts from global stars.

• Collectors treating toys as both passion and short-term investment. (Hypebeast)

This model helped fuel enormous revenue growth in 2024–2025 — including hundreds of millions in revenue and rapid profit expansion. (prod-out-res.popmart.com)

📉 The Shift: Supply, Saturation, and Fading Resale Premiums

Several key factors now point to a cooling craze:

1. Resale Prices Are Falling
Data from secondary markets shows prices for many Labubu characters dropping significantly from summer peaks. For example, figures that once sold for well above retail have plunged to prices close to or below official pricing as supply increases. (Investing.com)

2. Increased Production Has Eroded Scarcity
Pop Mart claims it has dramatically increased production — making around 30 million units per month — in an effort to curb scalper pricing and make toys more accessible. But greater supply also reduces the scarcity premium that once drove investors and resellers. (Investing.com)

3. Investor Expectations Were Sky-High
Before the slide, markets had priced Pop Mart “for perfection”, meaning even minor negative indicators — like softer resale prices or slower growth — could trigger a downturn. (The Economic Times)

📊 Market Signals and Analyst Views

Not all indicators point to the craze being over, but they do show it’s transforming:

✅ Revenue growth remains strong. Pop Mart reported record revenue increases in quarterly results, with Q3 2025 up around 250%. (GuruFocus)

✅ Global expansion continues. The company is planning dozens of new overseas stores and broader international reach by 2026, indicating confidence in the brand’s long-term appeal. (GuruFocus)

⚠ Yet investor confidence is mixed. Analysts have cited a potential peak in growth as early as 2025, with slower gains expected into 2026. Some see the stock as overvalued, while others caution the company’s dependence on Labubu’s continued momentum may limit upside without new IP drivers. (GuruFocus)

🤔 Is the Labubu Craze Over?

The short answer: not exactly — but it’s entering a different phase.

Here’s why:

📉 Signs of Cooling

• Resale premiums that once boosted speculative demand are shrinking, which historically signals less frenzied speculation. (Investing.com)

• Stock volatility suggests investors are re-evaluating growth assumptions. (Bloomberg)

• Some analysts have even likened the cycle to the notorious Beanie Babies bubble, suggesting aspects of the craze could resemble speculative mania. (Business Standard)

🔄 But Demand Isn’t Dead

• Pop Mart continues to sell products globally, with strong revenue growth and expanding international channels. (GuruFocus)

• New Labubu series and related IP initiatives (like animation plans) are underway to broaden appeal beyond the original hype wave. (Hypebeast)

• Analysts such as those at Morgan Stanley have maintained optimistic long-term views about the company’s ability to grow beyond just one product. (South China Morning Post)

🧠 Why It Matters

The evolution of the Labubu craze reflects broader trends in consumer culture and markets:

• Collectibles are both cultural and financial assets, but can be vulnerable when scarcity gives way to accessibility.

• Resale markets heavily influence brand perception and stock valuation.

• Companies dependent on a single breakout product may face headwinds if trends shift or novelty fades.

📌 Final Take

The Labubu craze hasn’t ended — but it’s definitely maturing, normalizing, and losing some of its speculative heat. While the dolls and other Pop Mart collectibles still sell well and attract fans, the explosive pricing premiums and investor euphoria that marked 2024–early 2025 have subsided.

As Pop Mart transitions from viral fad to sustainable global toy brand, investors and collectors alike will be watching whether new intellectual properties, broader product lines, and international expansion can sustain momentum into 2026 and beyond.