Art Toy Market Enters ‘Second Expansion Phase’ as Original IP Becomes Industry Consensus
China’s collectible toy market has entered a ‘second expansion phase,’ and the headline number is 67.69 billion RMB in 2025 domestic retail, up 45.4% year over year. The new phase is defined by diversification, with blind boxes, plush toys, trading cards, and model kits all pulling growth, and by a strategic pivot: cultivating original IP is now industry consensus. Brands that built their business on licensed characters are racing to own their own worlds, because licensed derivatives are non-exclusive and easy to discount in multi-brand stores.
The Numbers Behind the ‘Second Expansion Phase’
The market data shows growth spreading beyond the top brands. Taobao’s 2026 art toy report puts the overall market past 250 billion RMB with double-digit growth, and the story is broadening demand: ‘00s-born’ consumers on Taobao and Tmall passed 36 million with 25% penetration, while third-tier-and-below city users crossed 60 million for the first time. The category is no longer a first-tier city phenomenon.
The licensing side reinforces the shift. 2025-2026 licensed merchandise retail reached 179.85 billion RMB, up 15.9%, and toys and games are the largest licensed category, with over 40% of IP-adjacent shoppers choosing art toys first and more than 80% willing to pay a premium for limited editions. Those economics make owning the IP more valuable than renting it.
Why Everyone Is Now Building Original IP
The logic is simple: licensed IP is shared IP. A store can carry the same licensed character from ten brands and compete on price, which squeezes margins for everyone. Original IP, by contrast, creates a moat, and the industry has noticed. At the recent Shanghai International Trend Collection Expo, 52TOYS presented six in-house IPs, KAYOU debuted its first original art toy IP Harry Hatchy under a new OYYO label, and MINISO reported its original artist IP YOYO passed 100 million RMB in single-month China sales in June, reaching 53 countries within a year of launch.
The pattern is consistent: brands that started as licensees are re-positioning as originators. For the market as a whole, that means more unique character worlds, tighter edition control, and more room for new IP to break through alongside the established names.
What This Means for Collectors and the Market
For collectors, the shift to original IP is broadly positive. More owned characters mean more coherent universes with stable design languages, and brands like BaiChaoHui with the Zombie Party line are part of the same wave, building original worlds that collectors can follow across releases. Original IP tends to reward early buyers, because the characters that succeed create communities around them.
For the industry, the second expansion phase is a maturity signal. Growth is no longer coming from one dominant player or one format, but from hundreds of original worlds across multiple categories, and the data suggests that diversification, not consolidation, is the winning pattern.
Frequently Asked Questions
How big is the collectible toy market in China?
2025 domestic retail reached 67.69 billion RMB, up 45.4% year over year, and Taobao reports the overall market has passed 250 billion RMB with double-digit growth.
Why is original IP now the industry consensus?
Licensed merchandise is non-exclusive and easily diverted by multi-brand stores, which erodes margins. Brands are shifting to owning characters, with original IP now past 40% of revenue.
Who are the new collectors?
Taobao/Tmall ‘00s-born’ art toy consumers passed 36 million with 25% penetration, and third-tier-and-below city users broke 60 million for the first time.
