Toys and Play: LEGO, Pokémon, Labubu and Toy Safety — 2026-09-08
The US Consumer Product Safety Commission (CPSC) issued urgent warnings this week regarding counterfeit squishy toys and recalled magnetic building blocks due to severe ingestion hazards. Meanwhile, the Tokyo Toy Show 2026 concluded with a focus on "Kidult" trends and Pokémon merchandise, while Pop Mart faces scrutiny over falling overseas sales and secondary market volatility.
Toys and Play: LEGO, Pokémon, Labubu and Toy Safety — 2026-09-08
Top developments
CPSC Warns of Burn Hazards in Counterfeit Squishy Toys
On September 2, 2026, the US Consumer Product Safety Commission (CPSC) issued a safety alert warning consumers against purchasing fake or counterfeit squishy toys. The agency highlighted serious burn hazards associated with these products, which often lack required safety information or leak chemicals. Consumers are urged to stop using any squishy toy that has a strong chemical odor, feels oily, or lacks manufacturer details.
Recalls Issued for Magnetic Building Blocks and Battery Toys
In early September 2026, the CPSC mandated immediate disposal of certain magnetic building blocks due to the risk of serious injury or death from magnet ingestion. Simultaneously, ABC Trading recalled children’s toys for battery ingestion risks, violating mandatory standards. These actions highlight ongoing enforcement against products that fail to meet safety regulations for small parts and batteries, a critical issue for parents and retailers.
Tokyo Toy Show 2026 Highlights "Kidult" and Pokémon Trends
The Tokyo Toy Show 2026, held at Tokyo Big Sight in late August with general public access extending into early September, showcased approximately 35,000 toys from 186 companies. The event emphasized the "Kidult" market, with Bandai and Takara Tomy displaying high-end collectibles and Pokémon merchandise. Reports from the show indicate that adult collectors are driving significant growth in sectors like model kits and blind boxes.
Pop Mart Overseas Sales Decline Sparks Market Concerns
Recent analysis published in early September 2026 indicates that Pop Mart, the maker of Labubu blind boxes, experienced its first decline in overseas revenue. This trend has fueled debates about whether Labubu is a lasting brand or a fleeting trend, with investors scrutinizing the company's reliance on scarcity models. The drop coincides with broader market corrections for hype-driven collectibles.
Local view
Japanese media outlets have focused heavily on the Tokyo Toy Show 2026, with Entame Times and Response.jp reporting on the massive turnout and the dominance of "Kidult" products. Local stakeholders noted that while traditional children's toys remain stable, the most significant growth is coming from adults buying nostalgic and collectible items, including Pokémon and Gundam collaborations.
In China, financial commentators are analyzing Pop Mart's stock performance following reports of slowing international expansion. Double V Consulting notes that the "blind box" model is facing regulatory and consumer fatigue, prompting a shift toward diversified IP strategies like films and theme parks to sustain value beyond initial hype.
Context & numbers
The US toy market saw strong growth in the first half of 2026, with global toy value sales rising by 14% according to Circana data. Specific segments like games and puzzles grew by 39%, driven largely by Pokémon, while building sets increased by 20%.
LEGO Group reported a 21% revenue increase for the first half of 2026, reaching nearly £5 billion, aided by licensed properties such as Pokémon and Star Wars. This outpaces the broader market, reinforcing LEGO's dominant position in the sector.
On the radar
- Toy Fair NYC: Industry professionals are preparing for upcoming regional toy fairs, with a focus on sustainable packaging and AI-free design claims becoming key marketing points.
- Holiday Season Inventory: Retailers are monitoring the secondary market for Labubu and other blind boxes closely, as price stabilization may impact holiday gift demand for Gen Z consumers.
- Safety Compliance Checks: Following the CPSC alerts, major retailers are expected to increase vendor compliance checks for squishy toys and magnetic sets before the peak shopping season.
This content was collected, curated, and summarized entirely by AI — including how and what to gather. It may contain inaccuracies. Crew does not guarantee the accuracy of any information presented here. Always verify facts on your own before acting on them. Crew assumes no legal liability for any consequences arising from reliance on this content.
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