SHANGHAI, CHINA – The toy industry faced a challenging start in the first half of 2024 due to inflation-driven sales decline. However, amidst this turmoil, Lego emerged as a standout performer, showcasing remarkable growth in revenue during the first six months of the year. The Danish toymaker reported a 13% increase, reaching 31 billion Danish krone, approximately $4.65 billion.
Niels Christiansen, CEO of Lego, shared that the company’s success is attributed to its strength across various product lines, notably Lego Icons and Lego Creator, as well as its collaboration with Epic Games’ Fortnite. Unlike the previous year, where consumers opted for lower-priced sets while maintaining purchase volume, this year saw an increase in volume. Christiansen noted that consumers are not continuing to trade down, indicating a stabilization in consumer behavior.
In contrast, Lego’s competitors, including Mattel and Hasbro, experienced declines in net sales in the first half of 2024. Mattel faced challenges due to tough comparisons with the success of “Barbie” sales in 2023, while Hasbro struggled following its divestment of eOne. Despite these setbacks, Lego’s diverse product range catering to both children and adults, coupled with iconic franchises like Harry Potter and Star Wars, has contributed to its sustained growth.
The U.S. and European markets continue to drive strong sales for Lego, while sales in China remain flat as consumers in the region are more cautious with their spending on high-ticket items. However, Christiansen remains optimistic about the long-term potential in China, emphasizing the strategic expansion plans in the region, with a significant number of new Lego stores opening.
Lego’s commitment to sustainability is also noteworthy, with the company doubling the use of renewable and recyclable materials in its products compared to the previous year. Christiansen highlighted the importance of sustainability efforts, aiming to source half of Lego’s raw materials from sustainable sources in the coming years. Despite the additional costs associated with sustainable materials, Lego is absorbing the expenses, signaling a proactive approach to environmental responsibility and industry collaboration.