Two major U.S. toy companies, Mattel and Jazwares, are stepping into the construction toy market, aiming to challenge Lego’s dominance in the industry. Lego, known for its iconic brick-building sets, reported over $10 billion in revenue in 2024, showcasing its stronghold in the toy market.
Despite Lego’s market share, there seems to be an opportunity for new players to enter the construction toy category. Chris Byrne, an independent toy consultant, highlighted the increasing demand for construction toys in both collectors and adult enthusiasts. While Lego remains the dominant player, Mattel and Jazwares are making their mark with innovative brick-based construction sets.
In January, Mattel unveiled its new brand, Mattel Brick Shop, teasing audiences with a sneak peek at the Nuremberg International Toy Fair. The brand promises to disrupt the status quo with unique features and affordable prices, targeting consumers who seek a quality building experience at a lower cost. Mattel’s acquisition of Mega Brands in 2014 has provided a solid foundation for its foray into the construction toy market.
Jazwares, renowned for its Squishmallows plush toys, introduced its construction toy brand, BLDR, in January. Leveraging its popular IPs like Hello Kitty, Crunchyroll, and Squishmallows, Jazwares offers a fresh approach to building sets, incorporating distinctive elements from each property. With a focus on creativity and innovation, Jazwares aims to capture niche markets and meet consumer demands in the construction toy segment.
Both Mattel and Jazwares identify an opportunity in the construction toy market, characterized by high demand and strong consumer interest. By offering a diverse range of products at competitive prices, these companies aim to challenge Lego’s dominance and carve out their space in the industry. With a strategic focus on quality, innovation, and affordability, Mattel and Jazwares are poised to make a significant impact in the construction toy category.
As the toy industry evolves, Mattel and Jazwares’ entry into the construction toy market signals a shift in the competitive landscape, opening up opportunities for new players to thrive alongside industry giants like Lego. With a commitment to excellence and consumer-centric offerings, Mattel and Jazwares are poised to make waves in the construction toy category, catering to a diverse audience of builders and enthusiasts alike.