Blind boxes may hold pleasant surprise for non-toy retailers

Fashion and beauty products can also benefit from the ‘mystery.’

More retailers outside the toy business should adopt blind boxes to boost sales, as mystery collectibles continue to capture the imagination of both serious and casual buyers worldwide.

Whilst blind boxes — product packaging with a random item from a series, where the buyer doesn't know what's inside until they open it — are popular for entertainment products, even industries like food and beverage (F&B) and fashion could use them as a sales strategy, Jason Tjiptadi, a consultant at Euromonitor International, told Singapore Business Review.

“Industries such as fashion or skin care can also adopt ‘mystery products,’ where consumers do not know which design or variant they will be getting,” he said. A T-shirt or perfume blind box can always gain traction with social media hype.”

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.

“The popularity of blind boxes is fueled by the consumer trend of seeking fun experiences to alleviate stress and monotony,” according to London-based market research firm Mintel Group Ltd. “This trend is likely to continue as brands explore innovative ways to engage consumers through surprise and adventure, creating memorable experiences that resonate emotionally.”

In Singapore, where 77% of consumers enjoy trying new experiences, the most popular blind box brands are Lego, Pop Mart, and Pokemon, it said.

“Pop Mart experienced strong growth in 2024 through Labubu's popularity on social media, with the product continuously being sold out from the shelf,” Tjiptadi said in an emailed reply to questions.

Pop Mart’s Skull Panda and Molly brands also gained traction. “Pop Mart's licensing with popular intellectual properties such as Disney, Marvel, and Harry Potter further boosts its popularity, capturing a wider audience,” he added.

Toy retailers and brands should change their marketing strategies to remain competitive with free-to-play mobile games and streaming platforms, Tjiptadi said.

“If toys and their retailers remain the same as they were 10 years ago, then they will slowly lose consumers' attention, especially with today’s shorter attention span,” he said. “Retailers must look at creating an immersive store experience while leveraging social media to create hype surrounding its products.”

The analyst said mystery products are valued more if they are rare and scarce.

“Looking at Pokémon cards, for example, some are printed in smaller quantities, making them highly appealing to collectors,” he said. “But if there are too many products in the market compared with demand, they will not hold their value.”

Creating buzz
Another key factor is the hype surrounding these toys. 

Sales of dolls and accessory blind boxes in Singapore rose 12% in 2023, while nonblind-boxed dolls and accessories fell by 3%, Tjiptadi. “This shows a shift of interest from consumers, especially kidults who now prefer to spend their money collecting blind boxes.”

A popular franchise still needs to generate the hype surrounding its toy products to keep their value, he said. Pokemon, for one, manages to retain its hype because it is collected and promoted by celebrities and content creators, he pointed out.

“This works in the same way for blind boxes,” Tjiptadi said.

In 2024, Washington-based Funko, Inc. continued to release its latest products to capitalise on momentum from movie releases. It released a Deadpool and Wolverine edition when the movie hit cinemas in Singapore.

Meanwhile, Hong Kong-listed Chinese toymaker Pop Mart International Group Ltd. took advantage of celebrity endorsements and the “fear of missing out” trend to generate buzz and boost sales.

For other brands like Lego, kidults have become a primary target market because they are drawn to toys that evoke nostalgia.

The popularity of its Lego Icons series of construction toys, which showcase landmarks, buildings, classic vehicles, and pop culture favorites that target consumers older than 18 years, has gone beyond the COVID-19 pandemic and continues to drive the bulk of its growth, Tjiptadi said.