Lego Bets on Asia as sales hit record and market share climbs
[COPENHAGEN] After posting record half-year sales figures on Wednesday (Aug 27), Lego said it would sustain its momentum by doubling down on the market in Asia.
The Danish toymaker announced 34.6 billion kroner (S$6.9 billion) in revenue for the first half of 2025 – higher than those of rivals Mattel and Hasbro, and up from US$4.8 billion for the first half of last year. Consumer sales also increased by 13 per cent.
While the toymaker expanded its market share in every major geography, chief executive officer Niels B Christiansen pointed to Asia as playing an important role in Lego’s growth strategy.
“There are a lot of children in Asia, and living standards are going up,” Christiansen said in an interview. “That makes Lego more relevant.”
To capitalise on the region’s booming middle class, Lego opened its first stores in Delhi and Bangalore earlier this year, as well as a new factory in Vietnam. It also reported positive sales in China after struggling in the country in 2024.
“China, India and many Asian countries are only now seeing the first generation grow up with Lego, so building awareness takes longer,” he said. “But it’s a clear long-term bet.”
Lego’s new Vietnam plant, its first in South-east Asia, will serve as the backbone for growth in the broader Asia-Pacific region. It also fits into a strategy of building up regional supply chains to create a buffer against ongoing global trade tensions, Christiansen said. So far, he added, that’s worked. Despite uncertainty over tariffs, he said sales rose by double-digits in the US for the first six months of the year.
“Based on the way we have factories around the world, we have some flexibility to handle some of the things that are happening right now,” he said. “And toys probably aren’t the most politically charged thing in the world, either.”
At the moment, most Legos sold in the US are produced at the company’s factory in Monterrey, Mexico. That will change when it opens a new factory in Virginia in 2027. BLOOMBERG
