Pop Mart’s Explosive Q1 Growth: A Global Toy Empire in Motion
3min read The global collectibles market is witnessing a seismic shift, and at the epicenter sits Pop Mart, whose first-quarter 2025 revenue surged by a staggering 165%-170% year-on-year, fueled by a relentless expansion into overseas markets and a razor-sharp IP-driven strategy. This growth not only cements the company’s position as a cultural phenomenon but also raises critical questions about its sustainability and investment potential.
The Overseas Dominance
Pop Mart’s North American market has become its crown jewel. In Q1 2025, U.S. revenue alone exceeded its entire 2024 revenue, growing by 100% year-on-year, with the company now operating 26 stores and boasting a membership base of 1.7 million. Europe followed closely, with revenue surging 600%-605%, while the Americas (including the U.S.) saw an eye-popping 895%-900% increase. These numbers are not just growth metrics—they’re indicators of a company turning regional success into a global juggernaut.
The company’s global footprint now spans nearly 100 countries, with flagship stores in high-profile locations like the Louvre in Paris and Sun World Ba Na Hills in Vietnam. By 2025, pop mart aims to open ~100 new overseas stores, including super-flagship stores in the U.S., Thailand, France, and Australia, while upgrading its existing network. This aggressive retail expansion is paired with POPOP pop-up stores—a hit in Chinese cities like Shanghai and Chengdu—positioning the brand as a leader in experiential retail.
The IP Engine
At the core of Pop Mart’s success is its IP portfolio, which includes timeless characters like LABUBU (celebrating its 10th anniversary in 2025), MOLLY, SKULLPANDA, and CRYBABY. These IPs generated over 1 billion yuan in revenue in 2024, with SKULLPANDA’s “Warmth” series becoming the bestselling trendy toy in history. New IPs like HIRONO and Peach Riot further diversified its appeal, contributing 730 million yuan and 3 billion yuan in revenue, respectively.
The plush toy category, however, has been the star performer. After a 1,289% year-on-year revenue jump in 2024 (to 2.83 billion yuan), plush toys now account for 21.7% of total revenue. Despite supply chain challenges in 2024—where production scaled from 300,000 units/month to 10 million/month—Pop Mart has prioritized design, material innovation, and logistics upgrades, aiming to sustain this momentum.
Financials and Ambitions
Pop Mart’s 2024 performance laid the groundwork for its current trajectory. Full-year revenue hit 13.04 billion yuan, a 106.9% jump, with net profit soaring 185.9% to 3.4 billion yuan. Overseas revenue surged 375.2% to 5.07 billion yuan, accounting for 38.9% of total revenue. With 2025 revenue targets set at 20 billion yuan (a 50% year-on-year increase), the company is eyeing overseas markets to contribute over 10 billion yuan, including North America matching its 2020 total group revenue of 2.513 billion yuan.
Operational efficiency is another bright spot: gross profit margins rose to 66.8% in 2024 (up 5.5 percentage points), while inventory turnover days dropped from 133 to 102, signaling robust supply chain management.
The Risks and the Sell Signal
Despite its stellar growth, technical sentiment for Pop Mart’s stock is “Sell”, even with a 75% year-to-date price performance and a €24.11 billion market cap. This dichotomy underscores investor concerns: over-reliance on plush toys, supply chain volatility, and the high valuation relative to growth sustainability.
The plush category’s 1,289% surge in 2024 raises questions about whether demand can stay elevated. Meanwhile, geopolitical risks and global economic uncertainty could dampen discretionary spending on collectibles.
Conclusion: A Golden Opportunity or a Bubble?
Pop Mart’s Q1 2025 results are undeniably impressive, driven by IP mastery, geographic diversification, and operational discipline. The company’s 20 billion yuan revenue target for 2025 is within reach, especially if plush toys and overseas markets maintain their torrid pace.
However, investors must weigh this against execution risks. The “Sell” technical signal and 75% YTD stock surge suggest markets are already pricing in much of this growth. While Pop Mart’s 66.8% gross margins and strategic store expansion provide a solid foundation, sustaining the 895%+ growth in America—a market that now exceeds its entire 2024 performance in a single quarter—is no small feat.
For now, Pop Mart remains a high-risk, high-reward play. The company’s vision to become a “galaxy of creative possibilities”—spanning toys, animation, and jewelry—could solidify its place as China’s Disney analog. But investors should monitor supply chain resilience, IP lifecycle management, and consumer sentiment closely.
In a market where 25% of global toy sales are driven by adults, Pop Mart’s ability to tap into the “kidult” economy is undeniable. Yet, as the saying goes, past performance is no guarantee of future results. The next 12 months will test whether this toy empire’s growth is a sustainable boom—or a fleeting bubble.
This analysis synthesizes Pop Mart’s financial data, market positioning, and strategic initiatives to provide investors with a balanced perspective. The numbers are clear: the company is thriving. The question remains whether the fundamentals can outpace the skepticism priced into its stock.
