Lego boom: The toy giant continues to grow – despite inflation

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Through its many ventures, Lego has developed into a company that is almost protected against inflation – one toy brick at a time.

Lego creates buffer zone

While inflation has touched other industries, including most toy manufacturers, Lego has created a buffer zone with its extensive product portfolio and related entertainment offerings.

The company said its revenue rose 13 percent to $4.6 billion (€4.1 billion) in the first half of 2024. Lego noted that its double-digit growth “significantly outperformed” the toy industry. According to the Toy Association, overall industry revenues fell one percent in the first half of 2024 compared to the same period last year.

Here are some of the strategic steps the company has taken to achieve such positive results:

Addressing a broad audience

Lego is a rare toy that appeals to an audience beyond children.

The company attracts adult consumers, or “kidults,” with product lines like Lego Icons, which the company says include Lego sets featuring “impressive landmarks, modular buildings, classic vehicles, pop culture favorites and beautiful home accessories.” Adults can spend $850 (about €760) on a Star Wars Millennium Falcon or $680 (about €610) on a replica of the Titanic.

The Danish family company's investment in a wider audience has paid off. While the toy market has shrunk over the past 15 years, Lego has outperformed competitors such as Mattel, the maker of Barbie, and Hasbro, the maker of GI Joe. Lego has doubled its sales in the past decade.

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Strategic partnerships and entertainment projects

“Everything is great! Everything is cool when you're part of a team! Everything is great when we live our dream!” Everything is indeed great. Especially when a company is involved in many areas, including lucrative film and entertainment projects. Several films delve into the Lego universe, and it has paid off.

With its catchy “everything's great” refrain and some humorous tropes about adulthood to appeal to a wide audience, “The Lego Movie” was a huge success for an animated film when it was released in 2014, grossing over $468 million worldwide.

In 2017, The Lego Batman Movie and The Lego Ninjago Movie grossed $312 million and $123 million, respectively, worldwide. The Lego Movie 2, released in 2019, grossed $192 million worldwide.

Just as the Lego franchise saw a number of successes when they expanded into films they did the same by partnering with other popular brands, such as Adidas and Ikea. Customers can buy Adidas shoes that contain Lego pieces, or Ikea storage boxes with Lego studs and accompanying Lego bricks.

Lego in a digital world

Lego has also taken its plastic blocks into a new world: the digital world. Lego Fortnite, which is rated for players ages 10 and up, attracted millions of players when it launched in December. Players can build villages and “let it rip” with their friends.

This month, Lego announced that it had attracted an impressive 83 million players to the game. The company is looking for more digital partnerships to replicate the success of Lego Fortnite, Bloomberg reported.

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“We will continue to develop in the digital world,” Lego CEO Niels B. Christiansen told Bloomberg. “It is not new for the Lego Group to enter into partnerships and licensing agreements, and it is clearly our goal that we will do more.”