‘Blind Box’ craze — how Funko and Pop Mart are fuelling explosive growth in the $294B collectibles market

ASIA: In the world of collectible toys, a unique strategy is capturing the imagination of consumers worldwide — the blind box. This trend, where buyers purchase products without knowing exactly what they’ll get, has been instrumental in driving the growth of companies like Funko and Pop Mart.

In a Retail Asia article, the mystery of blind boxes creates a sense of anticipation that keeps customers returning, according to Andy Clempson, vice president of sales for Funko’s Asia-Pacific region. The surprise element makes it more than just a purchase; it becomes part of the fun, Clempson explained to Retail Asia. “Consumers are loyal because they want to keep buying until they get their desired product.”

This blind box model has proven highly effective, particularly within the micro-collectible segment, which saw a 35% growth last year and now accounts for roughly 10% of the market. The broader global collectible market was valued at $294.2 billion in 2023, and experts predict it will continue to grow at a rate of 5.5% annually until 2030, according to Grand View Research.

Pop Mart, a Chinese collectible toy company, is another key player capitalizing on the blind box trend. In 2019, the company partnered with Belgian artist Kasing Lung to launch the Labubu bag charm product line, based on the artist’s furry elf character, “The Monsters.” This collaboration quickly gained traction, and Pop Mart has since released multiple spin-offs of Labubu, securing global attention.

In the first half of 2024, Pop Mart’s international revenue surged to $1.9 billion (RMB13.5 billion), making up nearly 30% of the company’s total sales. Justin Moon, president of Pop Mart International, attributes much of the company’s success to its collaborations with global designers. According to Moon, they blend cultural elements into their designs to appeal to local markets. Some notable examples include Taiwan’s bubble tea-inspired Molly figurine, the Merlion Labubu plush, and a UK-exclusive Pop Bean football character.

For Funko, market strategies have included tapping into local cultural icons. Clempson highlighted the Philippines as a key market, where collaboration with Jollibee, the country’s beloved fast-food mascot, resulted in a highly successful Funko Pop figure. With over 1,100 licences across top global brands like Disney, Warner Brothers, and Netflix, Funko stays ahead of the curve by constantly introducing new product lines. According to Clempson, they present their partners with 100 new lines every month to keep the market fresh and exciting.

Both Funko and Pop Mart are confident that the collectible toy industry will continue to thrive, bolstered by technological advancements, growing demand for sustainability, and the introduction of even more innovative product lines.

As these companies continue to expand their global footprint and innovate in the blind box space, it’s clear that the collectible toy market is on a rapid upward trajectory, with no signs of slowing down.