Labubu, a spiky-eared collectible doll created by Hong Kong artist Kasing Lung, has become one of the hottest toys of 2025. With blind-box pricing ranging from $8.99 to nearly $30, and rare editions reselling for thousands, the trend is being driven not just by kids, but by anxious, value-conscious adults.
Toy Boom Signals Bigger Shift In Spending Behavior
According to Shaun Rein, founder of China Market Research Group, the Labubu craze is part of a larger shift toward emotional spending in uncertain times. “Pop Mart has been one of my biggest calls for the last three or four years,” Rein said in a recent CNBC International interview. “Consumers are anxious and really saving their money, except for on items like a Legoland experience or on Pop Mart’s Labubu. It makes them feel good.”
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He compared the boom to the well-known “lipstick effect,” where consumers spend on small luxuries during economic downturns. “In the United States, when there’s a weak economy, look at the lipstick effect. In China, it’s little toys.”
Rein noted that Pop Mart toys, including Labubu, have become especially popular among young women. “When you go into office buildings, a lot of the young women in my company have Pop Mart figurines lined up on their tables,” he told CNBC International. During the strict COVID testing period in China, he saw purchases of the dolls increase noticeably. It was their way of coping.
Pop Mart Could Become The Next Disney
Rein believes Pop Mart is still in its early stages of growth and may follow in the footsteps of major entertainment brands. “I think Pop Mart five, 10 years from now could have a theme park or an amusement park,” he said. “Fits exactly the Chinese consumer mindset right now—spending to feel better because of the anxiety.”
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Celebrity endorsements have only added to the craze. Stars like Rihanna, Kim Kardashian and David Beckham have been spotted displaying Labubu dolls, sending resale values skyrocketing. The dolls are frequently sold out online, with some editions starting at $167 and climbing far higher on secondary markets.
Starbucks Fumbles While Toys Thrive
Rein contrasted Pop Mart’s emotional connection and consistent demand with what he sees as a strategic failure by Starbucks (NASDAQ:SBUX) in China. Starbucks used to be luxury in a cup, he told CNBC. Now their outlets “are terrible, and 40% of their high-end menu items weren’t selling.”
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Rather than improving quality, Rein said Starbucks is trying to compete on price, a strategy he sees as doomed. “You can’t compete with Chinese companies on price,” he said. “They’ll go to lower margins. Starbucks needs to double down on premium in-store experience and better coffee.”
Labubu's runaway success, then, is more than just a toy story. It's a window into how stressed-out consumers are seeking comfort, identity and joy in small, meaningful purchases.
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