Founded in 1932, popular toy manufacturer Lego just celebrated its 90th year in business as a privately held company.

The widely recognized brand name stems from the Danish words “leg godt,” meaning “play well.” Even decades into existence, Lego is still “playing well.” Their CEO Niels B. Christiansen dubbed 2022 a “milestone year” for the brand

Last year, competitors experienced a drop in revenue due to decreased demand after COVID, but Lego’s 2022 profits reached approximately $2 billion. The toy maker’s online sales grew by about 10.5%. In addition to strong sales, Lego opened 155 new stores and increased production at several of its factories. Lego’s growing traction can be seen among young adult consumers, especially Gen Z. 

Lego ranked 4th in our latest AdAge-Harris Poll Gen Z brand tracker. This quarterly index uses QuestBrand data to rank the top 20 brands by brand equity growth among Gen Z adults (ages 18-24).

Lego’s Brand Equity – Gen Z Adults vs Baby Boomers – Trended 12 Week Moving Average

QuestBrand. 10/1/22-3/31/23. Base: General population of US adults (Black), n=3,011. Base: Gen Z adults (Blue), n=391. Base: Baby Boomers (Purple), n=856.

Brand equity measures the value consumers see in a brand at a particular moment of time. It is an average of four components: brand familiarity, perceived quality, purchase consideration, and perceived momentum

From Q4 2022 to Q1 2023, Lego experienced a +11.3 lift in brand equity among Gen Z adults. In contrast, the toy brand experienced a -1.2 drop in brand equity among the general population of US adults. While Lego also experienced growth among Millennials (+6.0), Lego saw the greatest drop in brand equity among Baby Boomers (-11.4), highlighting a divergence in Lego’s popularity between younger and older adults.

Many people assume that Legos are just a children’s toy; however, Lego has an entire section of their website devoted to builders ages 18+. Lego often partners with entertainment franchises that are popular with Gen Z and Millennials to design new sets. In Q1 2023, Lego released new sets featuring The Lord of the Rings, Guardians of the GalaxyJurassic Park, and Indiana Jones. They also announced sets designed by fans featuring South Korean boy band BTS and role-playing game Dungeons & Dragons. 

Lego’s Conversion Funnel – Reported Trial – Gen Z Adults vs Baby Boomers – Trended 12 Week Moving Average

QuestBrand. 10/1/22-3/31/23. Base: General population of US adults (Black), n=3,011. Base: Gen Z adults (Blue), n=391. Base: Baby Boomers (Purple), n=856.

While we can’t know for sure what is in Lego’s future, their growing “trial” numbers among Gen Z adults in Q1 2023 (shown above) signal that Lego’s future looks bright.

Lego’s trial numbers capture the number of people who report that they have “tried” Lego products, and is an essential step in the sales conversion process to converting a loyal buyer. Once consumers have interacted with a product, they are more likely to use the brand, and to recommend the brand to others.

No longer just a brand for children, many of Lego’s products have become a collectable form of buildable art. We can’t wait to see what sets Lego releases next!

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Catherine Ake

Content Strategist

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