Toys and Play: LEGO, Pokémon, Labubu and Toy Safety — 2026-09-04

Top developments

LEGO Posts Record H1 2026 Results Amid Global Toy Boom

LEGO Group announced record financial results for the first half of 2026, with revenue rising 21% to nearly £5bn (41.9 billion DKK) and net profit up 32%. The Danish toymaker attributed this growth to strong performance in licensed themes such as Star Wars, Harry Potter, and the newly launched Pokémon collection, alongside adult-focused botanical sets. This outpaced the global toy market, which Circana reported grew by 14% in the same period, solidifying LEGO’s market share gains against rivals like Mattel and Hasbro.

CPSC Issues Urgent Safety Alerts for Counterfeit Squishies and Magnetic Blocks

The US Consumer Product Safety Commission (CPSC) issued two critical safety alerts in late August and early September 2026. First, a warning against fake and counterfeit squishy toys was reiterated, citing serious burn hazards from unknown chemical compositions and lack of safety labeling. Second, consumers were urged to immediately stop using and dispose of specific magnetic building blocks due to the risk of serious injury or death if magnets are ingested, which can cause intestinal perforation. Additionally, Kori Gey water toy kits were recalled due to button battery ingestion risks that violate mandatory toy standards.

Tokyo Toy Show 2026 Highlights "Kidult" Trends and Pokémon Innovations

The Tokyo Toy Show 2026 opened on August 27 at Tokyo Big Sight, showcasing over 35,000 toys from 186 companies. The event underscored the "kidult" (adult collector) trend, which is now a primary driver of the Japanese toy market. Notable highlights included new Pokémon board games designed for shorter 15-minute play sessions to appeal to modern time-constrained consumers, as well as high-end collectible figures from Bandai and other major manufacturers. The show also featured collaborations between traditional franchises like Gundam and virtual influencers, reflecting the industry's push into hybrid entertainment.

Local view

Denmark: Local media in Billund and national outlets celebrated LEGO's "bøllebank" (thrashing) of competitors, with TV 2 and Jyllands-Posten highlighting that US rivals cannot keep pace with LEGO’s record-breaking profitability. Analysts noted that the company’s ability to attract adult customers has been decisive in its recent growth.

Japan: Japanese tech and hobby blogs like 4Gamer and Inside Games focused heavily on the nostalgia factor at the Tokyo Toy Show, noting that retro toys from the Showa and Heisei eras are selling as well as new releases. Coverage also emphasized the expansion of Pokémon merchandise, including new plush dolls and TCG Pocket updates.

Context & numbers

• LEGO Revenue: 41.9 billion DKK (~$6 billion USD) in H1 2026, up 21% year-over-year.
• Global Toy Market Growth: Circana reports global toy value sales grew 14% in H1 2026, while the US market saw a 17% jump, its best six-month performance in six years.
• Adult Market Share: Adults buying toys for themselves now account for 25–30% of all global toy sales, a segment LEGO has aggressively targeted with products like Botanical Collection and Star Wars UCS sets.
• Pokémon GO x LEGO Partnership: A physical retail partnership continues through September 30, 2026, allowing players in the US, UK, and Europe to earn in-game rewards by visiting participating LEGO stores.

On the radar

• LEGO Harry Potter Promotion: The "Back to Hogwarts" promotion is currently live on LEGO.com, offering up to 3x gift-with-purchase items and discounts for Insiders members until mid-September.
• Labubu Market Cooling: While not directly covered in this week's fresh news, previous reports indicate a stabilization in Pop Mart's Labubu secondary market prices following earlier hype cycles, with regulators in China continuing to monitor blind-box sales practices.
• Upcoming Pokémon TCG Updates: New series for Pokémon Trading Card Game Pocket are scheduled for October 2026, introducing "Dual Type" cards, which may drive further interest in physical and digital Pokémon collectibles.