Lego Sales Rise: Kids Away from Smartphones
Lego sales Surge: A Break From Screens?
At-a-Glance
What: Lego reported record first-half sales of 34.6 billion Danish kroner (£4 billion), a 12% increase. Net profit rose 10% to 6.5 billion kroner.
Where: Globally,with renewed growth in China after a slow start to 2024. Manufacturing is strategically located near markets (e.g., Mexico for US supply).
When: First half of 2025 (reporting period).
Why it Matters: Lego’s success potentially signals a shift in consumer behavior,with parents seeking alternatives to screen time for their children. The company is capitalizing on this trend with engaging products for all ages. strong performance outpaces the broader toy market (7% growth).
What’s Next: Lego anticipates continued sales growth of around 9% in the second half of 2025. Continued expansion into digital games and partnerships with brands like Nike to appeal to older children.Key data:
| Metric | Value (First Half 2025) | Change |
|---|---|---|
| Total Sales | 34.6 billion DKK (£4 billion) | +12% |
| Net Profit | 6.5 billion DKK | +10% |
| Global Toy Market Growth | 7% | N/A |
| Yoto Sales (Previous Year) | £94.8 million | Almost Doubled |
Highlights:
Botanicals & Formula 1: Strong sales in these themed sets contributed to overall growth.
Screen-Free Trend: lego believes it’s benefiting from parents’ concerns about social media’s impact on mental health and a desire for screen-free activities.
Competition for Time: Lego views its competition as vying for children’s leisure time, not just other toy companies. Strategic Manufacturing: Proximity to markets allows Lego to manage inventory and minimize tariff impacts (some tariffs are being paid on Mexican imports to the US, but deals have mitigated some costs).
New Partnerships: Deals with Bluey and Pokémon, plus the “She Built That” campaign, are expanding lego’s reach.
digital Expansion: Lego is together developing digital games to engage tweens.