The Labubu Boom: Balancing Profits with Environmental Responsibility

The small, elf-like creatures with pointy teeth and mischievous grins have taken the world by storm. Labubu dolls retail for $20 to $300 and have become the latest collectible to obsess over, but behind their adorable facade lies a troubling environmental reality that deserves serious attention.

Image Source: https://asia.nikkei.com/Business/Retail/China-s-Pop-Mart-soars-past-Sanrio-in-market-cap-on-Labubu-blind-box-boom 

The Numbers Behind the Phenomenon

Pop Mart, the Chinese toy company behind the Labubu empire, has seen explosive financial success from these collectible figures. Yahoo Finance reports that the brand's full-year revenue for 2024 was 13.04 billion RMB (1.82 billion USD), with a net profit of 3.4 billion RMB (474.00 million USD), and revenue from Labubu made up nearly 22% of its overall revenue. The company's stock has surged an incredible 600%, making it worth more than the makers of iconic brands like Barbie and Hello Kitty combined ("Pop Mart Releases").

But this success comes at a hidden environmental cost that too few are talking about. The Labubu surge has generated over 1.4 million videos on TikTok alone, with many featuring "blind box" openings where collectors purchase mystery toys hoping to get rare versions—often buying multiple boxes when they don't get what they want (Ruggeri).

The Uncomfortable Truth of Figurines 

Labubus, Smiskis, Sonny Angels, Monchichis, BearBricks... they're all made of plastic. And they'll most likely end up in the trash one way or another. In fact, statistics show that nearly 80% of toys eventually end up in landfills, incinerators, or the ocean (Sharma).

"The toy industry — $40 billion and growing in North America — has the highest plastic intensity, according to a major United Nations report on plastic use across all consumer goods. (Sharma)” So when an entire generation becomes obsessed with collecting dozens of small plastic figures, the environmental impact multiplies exponentially.

The Economics of Disposable Trends

The Labubu phenomenon perfectly illustrates what's known as the "lipstick effect"—an economic theory that proposes consumers buy more "mini luxuries" when the economy is suffering. With housing costs soaring and long-term financial goals feeling unattainable, young people are turning to affordable indulgences like $40 collectible toys.

The issue? These little characters come in all kinds of personas, outfits, and colors, and they've quickly become a high-priced collectible, but like all microtrends, they follow a predictable pattern. Eventually, these small pieces of plastic will join the towering landfills and worsen pollution conditions. 

Finding a Balance

This doesn't mean we should shame collectors or ignore the genuine joy these toys bring people. The issue isn't individual consumers—it's a system that prioritizes profits over sustainability. Pop Mart's incredible success proves there's massive demand for collectible culture, but the company has an opportunity to lead by example.

Imagine if Pop Mart invested a fraction of its billion-dollar profits into sustainable materials or limited production runs that genuinely preserve rarity without encouraging overconsumption. The collectible toy industry could introduce circular economy principles, creating products designed for longevity rather than disposal.

As consumers, we can ask better questions before purchasing: Does this purchase bring lasting joy? What happens to these items when the trend ends? And most importantly, how can we support companies that actually balance profit with environmental responsibility?

The Labubu boom won't last forever, but the plastic waste it generates will outlive us all. It's time for both companies and consumers to consider whether short-term profits and fleeting trends are worth the long-term environmental cost.

Works Cited

"Pop Mart Releases 2024 Financials." Yahoo Finance, 26 July 2025, finance.yahoo.com/news/pop-mart-releases-2024-financials-081900110.html. Accessed 26 July 2025.

Ruggeri, Angelo. "Labubu Obsession: Why Pop Mart's Toy Is a Gen Z Viral Phenomenon." Istituto Marangoni, www.istitutomarangoni.com/en/maze35/community/labubu-pop-mart-fashion-toy. Accessed 26 July 2025.

Sharma, Preety. "To Wean the Toy Industry Off Plastic Is No Easy Game." News Decoder, news-decoder.com/to-wean-the-toy-industry-off-plastic-is-no-easy-game/. Accessed 26 July 2025.