Toys and Play: LEGO, Pokémon, Labubu and Toy Safety — 2026-10-17

Top developments

LEGO Posts Record H1 2026 Revenue, Outpacing Global Market

The LEGO Group reported a 21% increase in revenue and a 22% rise in operating profit for the first half of 2026. This growth significantly outpaces the global toy market, which saw a 14% value sales increase according to Circana data. LEGO CEO Niels Christiansen highlighted strong demand across both ends of the pricing spectrum, noting that adults now account for 25-30% of global toy sales. This performance underscores the effectiveness of LEGO's strategy to engage "kidults" through complex sets and licensed collaborations.

Labubu Blind Box Frenzy Shows Signs of Cooling

The secondary market for Pop Mart’s Labubu blind boxes is experiencing a notable shift. The new "One Meow Becomes Cat" series, launched on October 15, 2026, did not sell out instantly as previous iterations did; instead, official stores maintained stock after 30 minutes, and some regular variants were listed below official retail price on resale platforms. While the market hasn't collapsed—with other IP like "Crybaby" still performing well—the era of guaranteed 7x premiums for hidden editions appears to be fading. Analysts suggest this reflects a maturing market where consumers are more selective, avoiding the speculative "flipping" mentality that characterized the earlier hype.

CPSC Issues Multiple Recalls for Toy Safety Hazards

The U.S. Consumer Product Safety Commission (CPSC) has issued urgent recalls for several children's toys due to severe ingestion hazards. Recent actions include the recall of ABC Trading children's toys and Kori Gey water toy kits due to risks of serious injury or death from button battery ingestion, which violate mandatory safety standards. Additionally, Montessori busy board toys were recalled for loose high-powered magnets that can attract each other in a child's intestine, causing life-threatening injuries. These recalls highlight the ongoing need for vigilance regarding small parts and battery compartments in mass-market and online-exclusive toys.

Local view

In Japan, the toy market continues to thrive with new product launches and strong consumer interest. Denfaminicogamer reported on October 16, 2026, that Pokémon is releasing new plush toys, including "Substitute" (Migawari) and "Magnemite" (Coil) figures, capitalizing on the franchise's enduring popularity. Meanwhile, ToyGet highlighted the release of new Tamagotchi devices on October 17, 2026, indicating that retro-tech toys remain a significant segment. The Japanese market's robustness is further evidenced by the success of the "TOKYO Toy Show 2026," which showcased over 35,000 new products, reinforcing Japan's role as a key innovation hub for the global toy industry.

Context & numbers

• LEGO Financials: H1 2026 revenue rose 21%; operating profit rose 22%. Full-year 2025 revenue reached 83.5 billion Danish kroner (approx. $12B).
• US Toy Market: Dollar sales jumped 17% in H1 2026, the highest growth in six years.
• Top Performing Segments: Games and puzzles grew 39% (driven by Pokémon); building sets grew 20% (driven by LEGO).
• Adult Toy Market: Adults buying for themselves now account for 25-30% of all global toy sales.

On the radar

• LEGO Set Retirements: LEGO is retiring 34 sets at the end of 2026, including collaborations with gaming franchises. Collectors are advised to monitor these sets as they may appreciate in value post-retirement.
• Double 11 Sales in China: The upcoming Double 11 shopping festival (starting Oct 20) is expected to impact blind-box pricing, with retailers potentially offering discounts that could further compress secondary market premiums.