More non-toy retailers use blind boxes to boost sales

Travel, food and beverage, and fashion can also benefit from a little bit of excitement.

A surge in shoppers seeking to relieve stress is fuelling increased blind box sales in Hong Kong, prompting non-toy retailers to adopt the hype.

“Local consumers are often stressed from daily work [and] other life commitments, especially in Hong Kong, where things are more fast-paced,” Clifton Chiu, a senior analyst at Euromonitor International, told Hong Kong Business.

“Blind boxes offer an escape via the element of surprise and excitement, allowing consumers to momentarily shift their focus onto other things rather than their careers,” he said in an emailed reply to questions.

London-based market research firm Mintel Group Ltd. expects the trend to continue as brands explore new ways to engage consumers through surprise and adventure. It noted that 66% of Hong Kong consumers enjoy trying new experiences.

The blind box format can also be adopted by non-toy retailers including those in travel, food and beverage (F&B), and fashion, Chiu said, adding that the concept has expanded into digital formats.

“This trend has already evolved into digital collectibles and non-fungible tokens, with many industries and companies entering the space,” he said. “One of the most prominent examples is the Pokemon Trading Card Game Pocket app, which has generated over $3.1b (US$400m) as of January 6.”

Retail brands such as Alibaba’s Tmall have also embraced digital collectibles, offering them as giveaways through its mobile app. These virtual collectibles feature collaborations with brands like Adidas Neo, Burberry, and PUMA.

“Pop Mart’s initial IPO (initial public offering) in Hong Kong in 2020 was a landmark moment for blind boxes, turning these into a mainstream phenomenon rather than a fad,” Chiu said.

He attributed Pop Mart's popularity to international events such as Milan Fashion Week and publicity from K-pop stars like BlackPink's Lisa.

“Pop Mart's sustained success has earned it approximately 0.5% market share in the dolls and accessories market, a significant achievement considering it competes in the same space as Barbie,” he pointed out.

With an average price of $80, blind boxes have contributed to the trend of “affordable luxury” since being rare enhances their value.

The global blind box toy market was valued at $14.3b in 2024 and is projected to grow 6% annually to $21.4b through 2031, according to India-based Cognitive Market Research. Whilst North America dominates the blind box toy business, the Asia-Pacific region is expected to post the biggest growth due to growing interest in collector toys among children and adults.

“The region's rich toy culture, driven by both local trends and global franchises, drives up demand for one-of-a-kind and limited-edition releases,” it said in a December 2024 report.

Sales of action figures, construction toys, and dolls and accessories rose 2% to 5% in Hong Kong last year, signaling a change in the demographic for the market as a whole, Chiu said.

“A large proportion of blind box consumers value the experience,” he said. “According to Euromonitor’s Consumer Lifestyle Survey 2024, one-third of global consumers are experience seekers who value the process of purchase more than the actual purchase itself.”

Chiu said companies should use blind boxes to boost revenue, as well as for marketing.

“The long-term value blind boxes bring to companies is their ability to build brand loyalty, create engaging customer experiences, and serve as a platform for product and IP (intellectual property) development,” he added.