Sales Soar 204% as Toys Transform into High-Priced Collectibles in a Flash [News Seolcham]

The Art Toy Market Rapidly Expanding Thanks to 'Labubu'
Small-Batch Production and Collectibility Are the Key Factors

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"A creation by Hong Kong artist Kasing Lung and an art toy."

The description of the Chinese toy 'Labubu,' which has sparked a global phenomenon, is always accompanied by the term "art toy." Art toys originated in Hong Kong in the 1990s as both art and pop culture, transforming what were once cheap, mass-produced toys into high-priced collectibles.

Labubu: An Art Toy Masterpiece Born in Hong Kong

Labubu Doll. Pop Mart Homepage

The definition of an art toy is "a collectible toy produced in small quantities through collaboration between artists and small independent companies." Rather than focusing on the function of the toy, art toys emphasize visual expression, world-building, and storytelling. They are closer to decorative items with collectible value. Labubu is currently one of the most popular art toys in the world. It was designed by Hong Kong artist Kasing Lung, and Chinese art toy brand Pop Mart is responsible for its manufacturing and distribution. Kasing Lung reinterpreted his favorite Nordic myths through the lens of Chinese sensibilities to create the Labubu character. Labubu, which debuted in 2015, was initially only noticed by a small group of art toy collectors. However, when Pop Mart, recognizing its potential, took over manufacturing and distribution in 2019, it quickly rose to become a globally popular character.

Michael Lau, the 1970-born Exhibition Artist, Pioneered the Field

The success factors of Labubu-such as producing a wide variety of items in small quantities and leveraging rarity for high collectible value-are all tried-and-true formulas that art toys have refined over time.

Michael Lau, a Hong Kong artist born in 1970, is regarded as the founder of art toys. A lifelong toy enthusiast, he was dissatisfied with the reality that toys were seen as cheap, mass-produced items. Under the slogan "All art is toys, and all toys are art," he opened the art toy market.

Michael Lau (left), known as the founder of art toys, and the G.I. Joe doll he designed. Crazy Smile, Vintage Orange homepage

Lau gained recognition in 1999 through his "Gardener" exhibition project, where he placed his self-designed G.I. Joe dolls on the streets of Hong Kong. He went on to collaborate with global corporations such as Sony, emerging as a leading young artist representing Hong Kong. His art toys inspired countless Chinese artists traveling to and from Hong Kong at the time, leading to an explosion of toys claiming the art toy label.

There are certain unwritten rules in the art toy market: ▲ The toy must be designed by an artist ▲ Various materials (such as plush, resin, ceramic, silicone, etc.) should be explored ▲ As many varieties as possible should be produced in small quantities ▲ Collectible value should be increased through the secondary (resale) market, among others.

Above all, collectible value is the core of art toys, as emphasized by Lau. In a 2021 interview with a foreign media outlet, he stated, "Everything you collect, whether it's toys or sneakers, is art," highlighting the inseparable relationship between art toys and collecting. Founded in 2010, China's Pop Mart succeeded in globalizing Labubu by selling art toys in random boxes.

The Labubu craze is fueling rapid growth in the art toy market.

According to KOTRA, the size of the Chinese art toy market, which was about 22.9 billion yuan in 2020, more than doubled to 57.1 billion yuan in 2023. In 2024, it reached approximately 76.4 billion yuan (about 15 trillion won), representing a year-on-year growth of about 33.8%. From 2020 to 2024, the Chinese art toy market grew at an average annual rate of 35%, nearly double the global market growth rate of 18%. In the first half of this year, Pop Mart's sales reached 13.9 billion yuan, a 204% increase compared to the same period last year. Its stock price also soared by nearly 180%, rising from 91 Hong Kong dollars at the beginning of the year to 259 Hong Kong dollars at the previous day's closing price.