James’ reaction as he unboxes a rare, limited edition Labubu toy can only be described as pure, unadulterated joy.

The YouTuber delightedly holds up a brown plush monster, which has been described by collectors as “cute”, “ugly”, “creepy” and everything in between.

Labubus are furry snaggletoothed gremlins, which are designed by Hong Kong-born artist Kasing Lung and sold by Chinese toy company Pop Mart.

They’re almost always sold out online and long queues often form outside the selected shops that stock them.

Labubus are also primarily sold in the blind box format, meaning customers never know what version they’ll get until they open them – a fact collectors have said adds to their appeal.

While it’s difficult to pin their recent rise in popularity to one particular ingredient, celebrity endorsement, social media unboxing videos and their ability to stir up nostalgia are all contributing factors.

James Welsh, from Hampshire, sees his Labubu collectable as an investment, which he tells the BBC “could probably earn a fair bit of money two or three years down the line”.

He has just shy of 30 Labubus which retail at around £25 for an individual toy or £153 for a box of six.

He says he has “spent hundreds and hundreds but not quite thousands” on the dolls.

Labubu maker Pop Mart has doubled its profits in the last year and is eying up global expansion in 2025.

The company, which started 15 years ago, has been described as “elevating toy buying to an act of trendy connoisseurship” and praised for embracing non-traditional designs, which have made them a hit with collectors.

Artist Kasing Lung is behind some of their popular toys including The Monsters series and Labubu.

He credits living in The Netherlands as the inspiration behind the dolls and told Hypbeast “I liked to read storybooks and was influenced by ancient European elf legends”.

Lung added that during his childhood, “there were no game consoles or computers, so I had to draw dolls with a pen, so I had the idea of painting fairy tales since I was a child”.

He first came up with the designs in 2015 and signed a licensing agreement with Pop Mart in 2019 to make them into toys.

Labubu as a name has no specific meaning, it is a fictional character based around an elf-like creature.

James says his first thought when he saw the one of the toys was, “they’re creepy but they’re also really cute and I need as many of them as I can get, I need them in every colour”.

The 36-year-old adds, “I think they [provide] some real escapism for millennials as it’s like reverting back to your youth with these toys and collectables.”

A former stylist, he now primarily creates beauty and skincare content, but has recently gained thousands of views on his channel from Labubu unboxing videos.

He tells the BBC: “there is a strong link between these plush pendants and the fashion community as well.”

“They’re a way to express who you are, you can show that through the different characters, which add a pop of colour and fashion is fun, it’s not serious at the end of the day, it’s reflective of who you are.”

There are several iterations of Labubu – from vinyl figures to plush toys – but the keychain versions have become most popular recently.

Labubu’s ascent into mainstream culture has been steady – but was elevated last year by BLACKPINK star Lisa.

The K-pop singer was seen with a Labubu creature hanging from her handbag and also called the toys “her secret obsession” in an interview.

Rihanna was also spotted with one of the toys attached to her bag in recent weeks, which has led to fashion fans replicating her look.

But for collectors such as 22-year-old Chulie, who shares her purchases on TikTok, she says Labubu becoming a “fashion trend” misses the point of why they’re so loved.

“For me, it’s all about the nostalgia and the surprise aspect,” she tells the BBC.

One of Pop Mart’s biggest selling points for collectors is the way their toys are packaged in what’s known as blind boxes, which make the experience of getting one like a lucky dip.

You don’t know what character you are getting until you unseal the package, so it’s always a gamble for collectors.

“You know it’s fun, it’s a dopamine hit”, James says.

“It’s gambling for some of us – kind of like a happy meal, you don’t know what toy you’re getting until you open it up.”

It also makes the toy perfect for the world of social media, as creators can catch their genuine surprise on camera and share it with other fans – something James says provides comfort and “escapism from the real world”.

Chulie says, as a child, she would collect Pokemon trading cards, so collecting another surprise item “triggered memories for me”.

“When you’re having a rough time, especially for me personally, it’s a big serotonin boost to not only buy a collectable and keep it, but share the experience with other people as well,” she adds.

Others have compared Labubus to Beanie Babies, which were popular in the 1990s and 2000s, and say collecting Labubus evokes feelings of childhood nostalgia.

For some fans, just documenting the experience of getting a Labubu is a talking point, with many showing the long queues and hours of research required to find out where new collections are being stocked.

It’s prompted backlash on some social media channels, with users criticising collectors that have bought large numbers of items.

“Just because you don’t understand someone’s hobby, doesn’t mean it’s not valid in any way,” James says.

While James hasn’t spent hours and hours queuing to build his collection, he says he “has gone out of my way” to source authentic dolls online. As with any popular item, counterfeits have made their way onto the market.

“I spend a fair bit of money on my hobby, but it’s my adult money,” he jokes.

Chulie says she currently has 10 Labubus, but has sold some to other fans when she’s ended up with the same toy twice.

“When I first got exposed to them, I wasn’t sure why people were spending money on them, because in the US they start at around $21 [£16], which is minimum wage for a lot of people.

“But it’s so addictive getting one, and it’s really hard to stop buying once you start,” she adds.