Lego is setting an ambitious goal to make half of the plastic in its iconic bricks from renewable or recycled materials by 2026. This initiative is part of the Danish toymaker’s broader effort to make its products more environmentally friendly. Currently, 22% of the plastic in Lego’s colorful bricks is derived from non-fossil-based sources. However, the company is committed to reducing its reliance on oil-based plastics, despite encountering challenges in previous efforts to use recycled bottles due to cost and production issues.
To support this transition, Lego is investing in certified renewable resin, which can cost up to 70% more than traditional materials. Despite the significant increase in production costs, Lego has decided to absorb these expenses rather than pass them on to consumers, aiming to push the industry towards more sustainable practices. The company’s ultimate goal is to fully switch to renewable and recycled plastics by 2032, having already tested over 600 alternative materials in pursuit of this objective.
In addition to its material innovations, Lego has expanded its brick takeback program, Replay, to the UK, and continues to explore similar models in the US and Europe. This program allows consumers to donate old bricks for reuse through free shipping, furthering the company’s sustainability efforts.
On the business front, Lego reported a 13% increase in sales, reaching 31 billion Danish kroner in the first half of this year, outpacing the overall toy industry. Operating profit also surged by 26% to a record 8.1 billion kroner, driven by the launch of around 300 new sets, including high-profile items like the £259.99 Lamborghini kit and the £554.99 Eiffel Tower. The brand has also seen growing appeal among adult women, particularly through its botanical collection, which has expanded its market reach.
Lego’s CEO, Niels Christiansen, emphasized that the company’s diverse product portfolio continues to resonate with all age groups, fueling demand across global markets. Despite a 7% contraction in the toy market last year, the worst in 15 years, Christiansen remains optimistic, noting that the market has stabilized in the first half of this year and may return to growth in the second half. Lego is poised to continue outperforming its competitors, backed by its strong momentum and strategic investments in sustainability and innovation.
