Toys and Play: LEGO, Pokémon, Labubu and Toy Safety — 2026-10-12
LEGO is preparing to retire 34 sets by the end of 2026 while a leak suggests Pokémon blind boxes are coming in 2027. Meanwhile, major recalls involving squishy toys with deadly water beads and magnetic fidget sliders have prompted urgent safety warnings from the CPSC. In China, Labubu’s market dominance shows signs of cooling as secondary prices drop and consumer interest shifts.
Toys and Play: LEGO, Pokémon, Labubu and Toy Safety — 2026-10-12
Top developments
LEGO Retiring 34 Sets and Pokémon Blind Box Leaks
LEGO has officially confirmed that 34 sets will be retired at the end of 2026, including collaborations with popular gaming franchises like Super Mario and Animal Crossing. Concurrently, leaks indicate that LEGO and The Pokémon Company International may launch blind box-style minifigure packs in early 2027, mirroring the successful Super Mario Character Pack model. This move would significantly impact LEGO’s revenue streams by tapping into the high-margin, collectible-focused "kidult" market that drives current growth.

Major Recalls for Squishy Toys and Magnetic Sliders
The Consumer Product Safety Commission (CPSC) has issued urgent recalls for over 37,000 squishy dumpling toys due to hidden water beads that can expand inside a child’s body, posing fatal intestinal obstruction risks. Additionally, magnetic fidget sliders and play purses were recalled in early October for violating mandatory safety standards regarding button cell batteries and high-powered magnet ingestion hazards. These incidents underscore the ongoing tension between viral toy trends and stringent safety compliance.

Labubu’s Market Correction in China
In China, the "Labubu" craze is showing signs of stabilization as secondary market prices for some items have dropped to around 50 yuan, with retailers like HotMaxx selling them at 19.9 yuan. While Pop Mart’s mid-term financials showed revenue growth, it missed market expectations, leading to a stock price correction and media reports questioning if the IP is "stagnating". Despite this, the "The Monsters" 10th-anniversary global tour finale in Beijing saw significant queues, indicating that while speculative buying cools, core fan engagement remains strong.

Local view
In Japan, local media highlighted the "TOKYO Toy Show 2026" which attracted over 70,000 visitors, noting a trend of "analog fusion" where toys integrate physical play with digital elements to combat smartphone dependency among children. Nikkei Cross Trend reported that these hybrid toys are becoming a key strategy for manufacturers like Bandai and Takara Tomy to engage both kids and adults. Meanwhile, Chinese outlet 21st Century Business Herald analyzed Pop Mart’s production capacity, noting that Labubu figures are being produced at a rate of 10 million units per month in Dongguan, aiming to saturate the market and curb scalping.
Context & numbers
- LEGO Financials: LEGO reported a net turnover of 83.5 billion DKK for 2025, with H1 2026 sales rising 21% to nearly 42 billion DKK.
- US Market Growth: Circana reports that the US toy industry had its best first-half performance in six years, with building sets growing 20%, driven by LEGO Botanicals and Formula 1 sets.
- Adult Collector Share: Adults buying for themselves now account for 25-30% of global toy sales, a trend heavily supported by LEGO’s adult-focused lines and Pop Mart’s collectibles.

On the radar
- Pokémon Polybag Reward: A LEGO Pokémon polybag previously given as a gift-with-purchase is returning as an Insiders reward for 500 points this week.
- Prime Day Deals: The Strategist notes rare discounts on the Pokémon Eevee LEGO set and Duplo kits during early October sales events.
- CPSC Magnet Standards: The CPSC continues to enforce new federal safety standards for water beads and high-powered magnets, with ongoing warnings about counterfeit squishy toys posing burn hazards.
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