Licensed Merchandise Market Size, Share, and Industry Analysis By Category (Apparel & Accessories, Home Décor, Sports Merchandise, Food & Beverages, Stationery & School Supplies, Toys, Technology Gadgets, and Others), By Sales Channel (Online/E-commerce, Brick-and-Mortar Stores, and Others), and Regional Forecast till 2032

The global licensed merchandise market is expanding rapidly, driven by the growing popularity of entertainment franchises such as movies, TV shows, and sports teams. Licensed merchandise, therefore, means products that bear the logos, names, or characters of these popular entities. The licensing market enjoys this cross-industry benefit, which goes as far as brand recognition translating into fan loyalty.

• As per the U.S. International Trade Commission (USITC), the U.S. licensed merchandise market was valued at $20.5 billion in 2023. This fact shows the upward growth in this area that promises an economic boost from increasing consumer interest in products that revolve around iconic brands and entertainment properties.

E-commerce is perhaps the largest exponential growth driver for this market, as it facilitates the ability of consumers worldwide to shop for licensed products. Access to licensed products has also become enhanced by digital platforms.

Licensed Merchandise Market Driver

Entertainment Franchises Drive Significant Market Growth

The popularity of entertainment franchises is one of the driving forces behind the licensed merchandise markets, as consumers search for different products connected with their preferred movies, television shows, or sports teams. The NPD Group reports that U.S. toy sales on licensed characters were $3.4 billion in 2023.

Meanwhile, evidence abounds indicating that demand for branded products continues to skyrocket. U.S. sales in licensed merchandise of sports leagues reached $2.4 billion in 2023. E-commerce platform expansion thus adds further impetus to market development as access to licensed products broadens and, with them, increases the consumer base worldwide.

Licensed Merchandise Market Restraint

Supply Chain Disruptions And Counterfeits Hinder Market Growth

They have also directly influenced the availability of products in terms of time, which in most cases has pressured the manufacturers. Changes in the prices of raw materials also increase production costs, together with profit margins, and impede growth. The volume of counterfeit products is increasing consumer confidence, which reduces the number of sales made for real merchandise.

Licensed Merchandise Market Opportunity

Emerging Markets And Innovations Drive Market Growth

The potential for growth in the emerging markets, especially Southeast Asia and Africa, is tremendous. Middle-class incomes are on the rise and are resulting in unprecedented purchasing power. Meanwhile, novelty value from technologies such as Augmented Reality and Virtual Reality will create heightened consumer awareness, which in turn impacts product development. The relationship with influencers and celebrities acts as a figurative umbrella to target different segments, augmenting the overall attractiveness of markets.

Segmentation

Key Insights

The report covers the following key insights:

• Market Segmentation: Apparel & Accessories, Sports Merchandise, Toys
• Drivers, Restraints, Trends, and Opportunities
• Economic Indicators and Consumer Demand Trends
• Key Industry Developments (Mergers, Acquisitions, Partnerships)
• Regional Insights: North America, Europe, Asia-Pacific
• E-commerce Growth and Online Retail Expansion
• Regulatory and Licensing Landscape

Analysis by Category

By category, the market is divided into apparel & accessories, home décor, sports merchandise, food & beverages, stationery & school supplies, toys, technology gadgets, and others.

Apparel & accessories are estimated to dominate the licensed merchandise market as consumers widely demand branded clothing, footwear, and fashion accessories associated with various franchises. Furthermore, licensed apparel is also regarded as a status symbol and is projected to have a very optimistic growth trend tied to entertainment franchises and fashion houses. This scenario will also trigger further growth, especially with the advent of the pop culture fashion phenomenon.

The significantly growing segment, such as home décor, includes licensed products used in the personalization of indoor spaces. While consumers clamored for such things, examples of themed furniture and bed linens, as well as wall art, revolved around highly popular movies, TV shows, and sporting teams. This inevitably brings even a growing expansion in this segment in the coming years as more and more consumers develop a greater interest in unique home decorations.

Analysis by Sales Channel

By sales channel, the market is divided into online/e-commerce, brick-and-mortar stores, and others.

It is perceived that in terms of sales channel, online/e-commerce is a long way from becoming the dominantly acknowledged channel for licensed merchandise. The convenience provided by shopping online, alongside the ability to access a wide assortment of licensed products, is resulting in the growth of this segment. Growth of online retail platforms will continue to provide a substantial impetus for growth in the years ahead.

Brick-and-mortar stores maintain significant growth in the licensed merchandise category, particularly in regions still under the spell of physical retailing. However, it is facing negative competition from online sales; hence, while it will continue to grow, this segment is expected to record a slower growth rate compared to e-commerce. Traditional retail stores are indispensable for showcasing high-demand merchandise tied to popular franchises.

Regional Analysis

Based on geography, the market has been studied across North America, Europe, Asia-Pacific, South America, and the Middle East & Africa.

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North America is expected to remain the leading regional market, fuelled by the eminent presence of major entertainment and sports franchises. Consumer spending on licensed merchandise in the region is high, whereas the advanced retail infrastructure supports extensive distribution. This robust market is expected to display a steadier growth trend over the years as demand continues to pour in from consumers and businesses alike.

Europe contributes its fair share to the licensed merchandise market through the active contributions of its historically rich cultural heritage and simple consumer preferences. Collaborative efforts between the increasing fashion industry and licensed brands, as well as the popularity of merchandising in sports product categories, are primary factors pushing further market growth. Growth in the region is expected to be sustained and bolstered by these trends and a strong retail network.

Urbanization and increasing disposable income are heavily boosting the growth of the Asia-Pacific region, and huge demand for licensed merchandise. Another favorable point is the rising fan clubs of international entertainment and sports that get promoted, increasing with the rise of e-commerce platforms, which give easy access to licensed merchandise. All the above points will provide the region with a great opportunity for future growth.

Key Players Covered

The report includes the profiles of the following key players:

• Mattel (U.S.)
• Bluestar Alliance (U.S.)
• Hasbro (U.S.)
• The Walt Disney Company (U.S.)
• Authentic Brands Group (U.S.)
• Dotdash Meredith (U.S.)
• Warner Bros. Discovery (U.S.)
• NBCUNIVERSAL (U.S.)
• The Pokémon Company International (Japan)
• WHP Global (U.S.)

Key Industry Developments

• In October 2022, as part of an extended working relationship with Nike concerning the licensed sports merchandising base, the South African Rugby Union collaborated with Nike for promotional campaigns related to the Rugby World Cups. This deal taps into Nike's reservoir of overall presence with a great heritage brand image of the rugby union as an endeavor to increase the attractiveness and availability of licensed rugby products.
• In August 2024, New Era Cap acquired '47, a competitor in the licensed sports league headwear and apparel space. The objective is to consolidate both brands while further strengthening interests within the scope of their specific uniqueness, building within the sports merchandise segment. This will, by extension, engender an edge and reach for the brands in the industry.
• In January 2025, ACON Investments acquired a controlling share in True Religion: a lifestyle apparel and accessories brand. This acquisition would help the company attain a licensing foothold, which can develop product extension and brand growth opportunities in fashion for True Religion at some point in time.