Danish toy maker Lego announced that it will be launching a new product line aimed for girls - the Lego Elves - this year as demand for other Lego products continue to rise.

Demand for Lego City, Lego Star Wars and Lego Friends sets continued to be strong in 2014 and the toy company was confident that its new Lego Elves will appeal to girls when launched this year.

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Lego made the announcement as it is poised to dominate the global toy market soon after it narrowed its gap on market leader Mattel in 2014.

Lego's revenue grew revenues grew 13 percent to 28.6 billion Danish crowns (US$4.4 billion) while US Barbie-maker Mattel's sales dropped 7 percent to US$6 billion, further shrinking the between the world's two largest toy manufacturers.

Lego's growth outpaced the modest growth seen in the toy market as it delivered its 10th consecutive record-breaking earnings report for 2014.

Thanks to The Lego Movie, the company, owned by the family founder Ole Kirk Kristiansen, sold 28.58 billion kroner (US$4.34 billion) worth of toys last year.

Lego, a privately held toy company, expects continued sales growth in 2015 and forecasts to keep outperforming rivals.

"The Asia toy markets experienced the strongest regional growth, with both more established markets such as Japan and South Korea and emerging markets such as China experiencing year over year increases," Lego said.

Lego said it will turn east and cash in on the growth of the Asian toy market as part of its long-term strategy.

The Danish toy manufacturer has laid the foundation for a toy manufacturing plant in China to address demands of Asian customers.

According to a recent study, Asia Pacific will become the world's largest traditional toy market in 2017, overtaking North America in sales.

TagsLego, Lego Elves