The Real Reason Labubu Toys Are Always Sold Out

Photo by David Kristianto

Labubu, the quirky toy goblin from Pop Mart, has become a global collectible sensation in 2025. Fans are lining up overnight to get one, and resale prices can reach hundreds of dollars. This intense shortage has led some to wonder if Pop Mart is deliberately restricting supply to increase hype.

However, insiders reveal that the real reason behind the shortage is more complicated.

Why Can’t Pop Mart Simply Make More?

Pop Mart relies on external factories, known as Original Equipment Manufacturers (OEMs), rather than making toys itself. While many Chinese factories can mass-produce toys quickly, Pop Mart’s extremely strict quality and intellectual property standards limit the number of eligible manufacturers.

Some factories even withdraw after seeing Pop Mart’s rigorous requirements, further restricting supply.

Demand Growing Faster than Production

Pop Mart was unprepared for Labubu’s explosive popularity. Every time they ramp up production, demand surges even higher. In June, the company did a massive restock of Labubu 3.0 through Tmall, selling 700,000 units almost immediately. Yet this move caused resale prices and Pop Mart’s stock to briefly dip, showing the risks of scaling too quickly.

Pop Mart’s Plan to Fix the Shortage

To manage demand better, Pop Mart announced it will delay launching some new characters to prioritize boosting Labubu production. The goal is to let genuine fans buy the toys without overpaying or facing endless queues, easing tensions in the resale market.

Still, Pop Mart must protect the brand’s feeling of exclusivity. The blind-box model, where consumers don’t know exactly what they'll get, encourages repeat buying and higher spending, and remains essential to the company’s success.

A Risky Boom for Pop Mart

Labubu’s popularity has significantly boosted Pop Mart’s revenue, which jumped 170% year-on-year in early 2025. The company is also expanding into new merchandise like giant Labubu statues and jewelry. But this success comes with risks, including potential regulatory scrutiny around blind-box sales, particularly regarding younger customers in China.

More than Just Marketing

Is Pop Mart intentionally creating shortages? Not exactly. The scarcity is mainly driven by cautious growth strategies and high standards for quality and brand protection.

Labubu’s explosive growth has outpaced the company’s ability to supply it, leaving Pop Mart racing to catch up without losing the magic that made Labubu so popular in the first place.