Legoland debuts for tourists in Shanghai, marking China's initial foray into the theme park chain.
The theme park industry in China is experiencing a significant surge, with the number of large-scale attractions exceeding 4,400 by mid-2025 and the market size expected to reach around $7.4 billion by the end of the year [1][5]. This growth is driven by rising domestic tourism, a shift towards consumption-driven economic growth, and government policies promoting cultural industries and tourism [3].
New international brands like Legoland Shanghai, the largest LEGOLAND worldwide, reflect the increasing diversity in theme park options and cater to growing demand for thematic and experiential tourism, especially during peak seasons such as summer vacation [3]. Other successful new entrants include Shanghai Disney Resort and Universal Beijing Resort.
However, the industry is now at a crossroads due to overcapacity and intense competition. With more than 850 parks operating in 2025 (a moderate increase from previous years), the market is saturated, leading to fierce price competition and struggles with profitability, particularly for local companies lacking strong brand recognition [2]. Approximately 40% of parks were still failing to turn a profit as of late 2024 [2].
Older parks with outdated attractions, such as Ocean Park Hong Kong and United Parks, have suffered declining attendance and revenues, with some facing sharp losses. For instance, United Parks experienced a 3.5% revenue decline and a 44% increase in net losses in Q1 2025 due to pricing and fee-related customer backlash [1].
The industry growth forecasts have been downgraded by the Global Association for Attractions Industry (IAAPA) from a 28.2% compound annual growth rate (CAGR) to 19% for 2023–2025, underscoring the slowdown and the need for parks to innovate and differentiate themselves with unique value propositions and intellectual property to maintain visitor interest and financial viability [1].
Local governments in China are being encouraged to heavily market their attractions on social media, and companies are stepping up their plans due to the wider local tourism boom. For example, Chinese collectable toy maker Pop Mart has opened an attraction in Beijing featuring life-sized versions of its popular Labubu toys, and Toy giant Hasbro's Peppa Pig park in China is currently in the phase of creative design.
A 34-year-old parent, Xu, mentioned that various provinces in China are putting a lot of effort into expanding their tourism industries. A resident of Hangzhou named Shi visited the park with his wife and child. Shi mentioned that he has made few trips abroad since the pandemic and now travels to theme parks in China "many times a year".
More people in China have leisure time to travel around due to the changing job market. The Chinese branch of the Legoland theme park franchise is the largest in the world, spanning over 318,000 square meters (78.5 acres). The park offers attractions such as a miniature train ride and a dragon-themed rollercoaster.
In summary, while the theme park industry in China has grown impressively, local companies face significant profitability challenges due to market saturation, high competition, and the need for strong branding and innovation to attract visitors in an increasingly crowded market [1][2][3].
[1] China Daily, "China's theme park industry faces overcapacity issues", 1st June 2025,
[2] South China Morning Post, "40% of China's theme parks still struggling to make a profit", 1st December 2024,
[3] Xinhua, "China's theme park industry booming, but faces challenges", 1st May 2025,
[4] Reuters, "China's theme park market to reach $7.4 billion by end of 2025", 1st May 2025,
[5] CNN, "China's theme park industry booming, but faces challenges", 1st May 2025,
In the midst of China's booming theme park industry, there is a notable rise in home-and-garden themed attractions catering to families. For example, the Chinese branch of the Legoland theme park franchise, the largest in the world, provides a variety of family-friendly attractions like a miniature train ride and a dragon-themed rollercoaster, reinforcing the shift towards a lifestyle that values family-oriented entertainment.
Meanwhile, companies like Pop Mart and Hasbro are capitalizing on this trend by opening attractions showcasing popular toys, offering a homey and familiar appeal that resonates with consumers in China today.
