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Yuke Xie

The rise of Pop Mart’s The Monsters series, as well as new games and animations reimagining mythological figures like the Monkey King and Ne Zha, has driven rapid growth in China’s intellectual property (IP) industry in recent years, with analysts saying the trend is likely to continue.
“While the economy is sluggish, it continues to grow and generate consumption,” wrote Ivan Su, a senior equity analyst for Morningstar. “This increasing growth in China will help lead to the creation of and investment in more home-grown IPs.”
He said IPs were targeting consumers with rising incomes who desired social belonging and esteem. He added that consumers accustomed to spending on IPs made up a growing share of the population.
For toys, China’s IP sales were projected to grow at an annual rate of 17.2 per cent through 2029 after reaching 7.6 billion yuan (US$1 billion) in 2024, investment bank CICC said in a report last week, citing data from China Insights Consultancy.
Over the same time period, global IP growth was expected to reach 8 per cent a year after hitting 525.1 billion yuan in 2024, CICC said, adding that China and Southeast Asia were expected to contribute nearly half of the industry’s total growth over the next four years.
But analysts said the industry’s long-term momentum also depended on companies’ ability to keep their IPs hot after the initial buzz faded.
Pop Mart is an illustrative recent example. The Beijing-based toymaker behind the popular “Labubu” dolls saw its shares plunge nearly 15 per cent last week after restocking its latest Labubu 3.0 series. The move sent resale prices tumbling temporarily and raised concerns that the company’s rapid growth was cooling.
“But what a lot of investors fail to see is that the rebalancing of supply and demand could actually be a good thing,” said Richard Lin, chief consumer analyst at SPDB International, a Hong Kong-based investment bank. He said that by selling the toys directly, Pop Mart was able to capture more revenue rather than leaving it to resellers.
The correction in resale prices could also bolster Pop Mart’s public image at a time when Chinese regulators are cracking down on mystery boxes and other consumer products that have sparked impulse buying.
“In other words, when the heat comes down, it’s actually positive for the company’s sustainable development, and Labubu could very well become a classic IP that could be monetised in the long run,” Lin said.
According to Tianyancha.com, a corporate database, China was home to more than 50,000 companies in the trend toy sector, with around 3,100 new registrations in the first half of 2025. Social media played a role in amplifying the popularity of IP characters around the world, Morningstar’s Su said. He added that slowing economic growth had forced Chinese consumers to spend on more affordable luxury goods, which has been a boon for IPs.
Pop Mart’s shares have risen more than 160 per cent this year, pushing its market capitalisation to nearly US$40 billion. Its first-quarter revenue rose 170 per cent from a year earlier, aided by 600 and 900 per cent gains, respectively, in Europe and the US. Revenue in China grew 100 per cent during the period.
Other companies are seeking to ride the IP wave. Last year, budget retailer Miniso said it would “take 100 Chinese IPs to the world” and was reportedly planning an initial public offering (IPO) for Top Toy, its trend-toy business. Bloks, which makes Lego-like toys and has a portfolio of licenses that includes Transformers and Naruto, launched its Hong Kong IPO in January and has gained 64 per cent year-to-date. Trading-card producer Kayou and Pop Mart rival 52Toys were also preparing to go public in Hong Kong.
“There has also been a strategic push by local governments and companies in China to build broader ecosystems to foster and grow cultural brands, from licensing and merchandising to offline retail experiences like pop-ups and exhibitions,” said Chris Pereia, founder of Singapore-based brand consulting firm iMpact. “This level of vertical integration shortens the time from concept to commercial success.”


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China’s IP sales are projected to grow at an annual rate of 17.2 per cent through 2029 after reaching US$1 billion in 2024, CICC says


China’s IP sales are projected to grow at an annual rate of 17.2 per cent through 2029 after reaching US$1 billion in 2024, CICC says.


With The Monsters, Monkey King and Ne Zha, China’s IP-driven businesses brace for growth

.css-1c6uqr6{color:inherit;font-weight:inherit;font-size:inherit;font-family:inherit;line-height:inherit;overflow-wrap:break-word;}China’s IP sales are projected to grow at an annual rate of 17.2 per cent through 2029 after reaching US$1 billion in 2024, CICC says

China’s IP sales are projected to grow at an annual rate of 17.2 per cent through 2029 after reaching US$1 billion in 2024, CICC says