The Labubu craze that once seemed unstoppable is fading fast. Pop Mart, the company behind the small furry monsters, has reported that global sales in the three months to the end of September fell by as much as half compared with the same period a year earlier.

The decline was steepest outside mainland China, with revenue in the United States down by at least 70 percent. For a while, the dolls flew off shelves around the world and collectors queued for hours to buy them, while Pop Mart became worth more than the biggest names in the toy business put together.

Pop Mart, listed in Hong Kong in 2020, now runs 500 shops in more than 30 countries alongside 2,000 vending machines, and is still worth close to 24 billion dollars.

Shares down more than half from peak

Yet its shares have fallen by more than half from last year's peak, and investors worry its global success was a passing viral moment rather than lasting growth. Pop Mart declined to comment on the share price and did not answer questions about the falling sales.

Creators who once drew huge audiences from Labubu clips say the excitement has gone quiet. Ensito, a mega-fan from North Carolina, quit his tech job in 2024 to create Labubu content full-time, and has spent more than $50,000 (£37,000) building a collection of more than 400 of the dolls. His posts now struggle to reach their old audiences, and his focus has shifted to Hello Kitty and squishies.

Ashley Dudarenok of China research firm ChoZan said the sense of exclusivity faded as Pop Mart ramped up production to meet demand. Experts say its biggest challenge now is turning a viral toy into a character people care about for years.