Toys and Play: LEGO, Pokémon, Labubu and Toy Safety — 2026-10-30
Pop Mart reported a severe Q3 revenue decline of 45-50% as the Labubu craze cools, while LEGO Group continues to dominate the market with strong H1 2026 financials. Meanwhile, toy safety remains a critical focus as recalls for water-bead toys and magnetic figures highlight choking and ingestion risks.
Toys and Play: LEGO, Pokémon, Labubu and Toy Safety — 2026-10-30
Top developments
Pop Mart’s Labubu Boom Collapses Pop Mart announced on October 27 that its Q3 2026 revenue fell 45% to 50% year-over-year, marking the company’s steepest decline since its 2024 surge. In the Americas, sales dropped by over 70%, and in Asia-Pacific by 65-70%. The secondary market has reacted sharply, with some Labubu blind-box prices falling from a peak of ¥4,522 to approximately ¥400, signaling a shift from speculative resale to cooling demand.
LEGO Group’s Record Growth Continues While Pop Mart struggles, LEGO Group reported strong demand and brand relevance, with H1 2026 revenue up 21% and operating profit up 22%. Recent updates to the LEGO watchlist indicate that "sold out" status on LEGO.com is becoming less reliable as inventory stabilizes, affecting resale values for collectors.
Pokémon Merchandise Dominates Japan In Japan, Pokémon merchandise remains a top driver of toy sales. New Pokémon goods launched at Don Quijote and Apita stores on October 27, featuring plush apparel and accessories. Additionally, the "Pokémon Card Game MEGA 30th CELEBRATION" set topped Amazon Japan’s toy ranking for new arrivals, reflecting the franchise's enduring popularity among collectors.
New Safety Recalls for Magnetic and Water-Bead Toys The U.S. Consumer Product Safety Commission (CPSC) issued urgent warnings to stop using CHE-US Magnetic Stick Figures due to the risk of serious injury or death from magnet ingestion. Concurrently, two types of squishy toys containing water beads were recalled because the beads can expand if swallowed, posing choking and intestinal blockage risks.
Local view
China: Resale Market Cooling Chinese media outlets like Huxiu and The Paper are highlighting the collapse of the Labubu resale market. Reports indicate that scalpers are halting acquisitions of Labubu series, and secondary platforms like Xianyu are seeing prices drop below retail for common items. The narrative suggests that the "trendy toy" sector is returning to fundamentals, with consumers preferring direct purchase over speculative flipping.
Japan: Adult Collectors Drive Retail Japanese tech and entertainment media, such as Inside Games, are focusing on the release of niche Pokémon merchandise for adults, such as "Poko a Pokémon" rugs and plushies. This aligns with global trends where adult collectors ("kidults") are becoming the primary growth engine for the toy industry, a trend LEGO and Pokémon are actively exploiting with premium sets.
Context & numbers
- Pop Mart Q3 Revenue: Down 45-50% year-over-year.
- Labubu Secondary Market: Prices dropped from ¥4,522 to ~¥400 for select items.
- LEGO H1 2026: Revenue up 21%, Operating Profit up 22%.
- US Toy Industry (H1 2026): Best first-half performance in six years, with adults driving more than half of growth.
On the radar
- Fugglers Rise: A new viral toy craze, "Fugglers," is emerging on TikTok as a potential successor to the Labubu blind-box phenomenon.
- Holiday Inventory: Retailers are updating holiday deals and inventory lists as "sold out" indicators on LEGO.com become less reliable for resale forecasting.
- Safety Enforcement: The CPSC’s recent warnings on magnetic toys suggest stricter enforcement on small-part safety standards heading into the holiday 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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