Lego top competitors by market share
LEGO dominates the US construction toy market holding 80% of the market, followed by Mattel at 11%. The global construction toy market was worth $6.694 billion in 2017 with the key players including LEGO, Vtech, Mattel, Inc., Hasbro, Bandai Co., Ltd., Mega Bloks, Knex, Melissa & Doug, Meccano, and Gebr. Märklin & Cie. GmbH. LEGO holds approximately 81% of the global construction toy market, followed by Mattel at 4% and Spin Master at 1.67%.
I have consulted a number of toy industry market reports, company financial reports, and industry sources to compile data on LEGO and its competitors. As LEGO's primary market is in the construction toy industry segment, I have looked at the overall toy market, as well as the construction toy industry, specifically. I have also looked at both US and global data to compile the relevant market share data.
The US toy market was estimated to be worth approximately $27 billion in 2017, of which the building set category accounted for $1.85 billion. In the US construction toy market, LEGO dominates the category with 80% ($8 of every $10 spent in the category), while Mattel's Mega Bloxs holds 11% of the market. Mattel acquired Mega Bloxs in 2014 for $460 million to compete with LEGO. The company is pairing some of its other top franchises with Mega Bloxs, creating American Girl branded building blocks and Hot Wheels tracks featuring Mega bricks.
70% of LEGO's sales come from the US and Europe and it is pushing to enter other markets, such as China. In 2017, they saw declines in these two primary markets, likely due to an excess of LEGOs on the market, causing them to sell some of them at a loss.
I found no additional data on the market share of specific companies in the US construction toy market, likely because the remaining 9% of the industry is highly fragmented.
In 2017, the global construction toy segment was worth $6.694 billion and is expected to reach $9.089 billion by 2022, according to a PR Newswire report. According to this report, the key market players include LEGO, Vtech, Mattel, Inc., Hasbro, Bandai Co., Ltd., Mega Bloks, Knex, Melissa & Doug, Meccano (owned by Spin Master), and Gebr. Märklin & Cie. GmbH.
LEGO's global revenue is $5.4 million. Since LEGO's products primarily fall into the construction toy category, we can estimate that LEGO holds about 81% of the global construction toy market (5.4 billion / 6.694 billion). Mattel's global revenue is $6 billion, but only $269.5 million of that is attributed to its "Construction and Arts & Crafts Brands" segment, which includes Mega Bloxs. So it holds only about 4% of the global construction toy market (269.5 million / 6.694 billion). So these two companies account for 85% of this market segment (81 + 4).
Looking at the other key players in the market, it is difficult to determine their market share within the construction toy segment, as most of these companies either do not segment their financial data by category or they are privately held companies for which we can only access estimated revenue data. However, those companies have the following global revenue:
• Vtech: $2.079 billion
• Hasbro: $5.21 billion
• Bandai Co., Ltd.: $5.61 billion (estimated, private company)
• Mega Bloks: $269.5 million (owned by Mattel)
• K'nex: $25.72 million (estimated, private company)
• Melissa & Doug: $350 million (2016)
• Meccano: Acquired in 2013 by Spin Master, which saw revenue of $1.551 billion in 2017, of which $112.1 million was attributed to its "Boys Action and High-Tech Construction" segment. Meccano's revenues have declined in recent years. Therefore, Spin Master would hold about 1.67% of the global construction toy market (112.1 million / 6.694 billion).
• Gebr. Märklin & Cie. GmbH: $117.34 million (estimated, private company)
The overall global toy industry was worth around $88.8 billion in 2016, the most recent data publicly available. Therefore, market share among the aforementioned companies would be as follows (dividing company revenues by the global market size):
Bandai Co., Ltd.: 6.3%
Spin Master: 1.75%
Melissa & Doug: 0.4%
Gebr. Märklin & Cie. GmbH: 0.13%
A 2017 Wall Street Journal article suggests that a possible merger of Mattel and Hasbro would lead to the new company holding about one-third of the US market and 22% of the global toy market, according to Euromonitor International.
In conclusion, LEGO holds about 80% of the US construction toy market and about 81% of the global market. Mattel's Mega Bloxs category makes up 11% of the US market and about 4.5% of the global market. Spin Master makes up about 1.67% of the global market.