The Booming World of Licensed Products: Insights from the 2025 Top Global Licensors Report

Table of Contents

1. Key Highlights:
2. Introduction
3. The Landscape of Licensed Products
4. Growth Categories and Emerging Trends
5. The Importance of Emotional Connections
6. The Future of Licensed Products
7. Conclusion

Key Highlights:

• Licensed product sales reached $307.9 billion in 2024, marking a 10% year-over-year increase.
• Disney leads the market with $63 billion in sales, representing over 20% of the total licensed products sold.
• Apparel is projected to remain the top growth category, with a significant generational shift in purchasing patterns anticipated as Gen Z overtakes millennials in buying licensed products.

Introduction

The licensed products market is experiencing unprecedented growth, with total retail sales surpassing $300 billion for the first time in 2024. This surge is indicative of shifting consumer preferences and an evolving landscape in brand loyalty and marketing strategies. The recently released 2025 Top Global Licensors report by License Global offers critical insights into this booming sector, highlighting key players, market trends, and the implications for future buying behaviors. As brands strive to create deeper emotional connections with consumers, understanding these dynamics is essential for businesses looking to capitalize on the lucrative licensed products market.

The Landscape of Licensed Products

The global licensed products market has entered a new phase of development, with total retail sales reaching an impressive $307.9 billion in 2024, according to the License Global report. This figure represents a remarkable 10% increase from the previous year, showcasing the resilience of the sector even amid economic uncertainties. The report emphasizes that the top ten licensors alone have generated sales exceeding $1 trillion over the past five years, highlighting the significant impact these companies have on the market.

Disney: The Unrivaled Leader

Disney continues to dominate the licensed products market, with estimated sales of $63 billion, accounting for roughly 20% of overall sales. This steady performance indicates the effectiveness of Disney's extensive portfolio, which includes beloved characters and franchises that resonate across generations. Following Disney are other prominent licensors, such as Authentic Brands Group at $32 billion, Dotdash Meredith at $26.7 billion, and NBCUniversal at $17 billion, showcasing a competitive landscape where brand identity and recognition play crucial roles.

The consistent sales figures for Disney demonstrate its ability to maintain relevance and appeal in a fast-changing market. The company's strategic initiatives, such as collaborations with various product manufacturers and expanding its digital presence, have reinforced its position as a leader in the licensed products sector.

Growth Categories and Emerging Trends

The License Global report identifies apparel as the top growth category, with 70% of brand owners highlighting it as a key opportunity for licensed consumer goods in 2025-26. This trend is supported by a growing consumer interest in fashion that reflects personal identities and cultural affiliations. Brands are increasingly leveraging licensed merchandise to create apparel that resonates with consumers on an emotional level, thereby fostering brand loyalty.

Following apparel are toys and games, which are highlighted by 54% of brand owners as significant growth areas, and food and beverage, with 52% citing its rising importance. The latter category, in particular, reflects a strategic shift as brands seek to engage consumers through experiential marketing and product innovation.

The Generational Shift in Purchasing Behavior

As the market evolves, a notable generational shift in purchasing patterns is emerging. Millennials currently lead the market, accounting for 28% of total sales in 2024, but projections indicate that Gen Z will take a slight lead in 2025-26 with a 27% market share. Millennials are expected to follow closely at 24%, while Gen Alpha will account for 22%. This shift underscores the necessity for brands to adapt their marketing strategies to engage younger consumers effectively.

Gen Z's purchasing habits are characterized by a preference for brands that align with their values and lifestyle choices. As digital natives, they seek products that offer authenticity and meaningful connections. Brands that can create integrated experiences across physical, digital, and hybrid platforms are likely to thrive in this new consumer landscape.

The Importance of Emotional Connections

The License Global report highlights the increasing significance of emotional connections in consumer decision-making. As economic pressures mount, consumers are prioritizing brands that resonate personally with them, leading to a foundation of loyalty that transcends traditional market forces. Ben Roberts, content director at License Global, notes that "successful brands will move beyond individual products to create integrated experiences."

This sentiment reflects a broader trend towards experiential marketing, where brands aim to create immersive environments that foster consumer engagement. Companies are investing in storytelling and brand narratives that evoke nostalgia and identity expression, which are critical in building lasting consumer relationships.

Real-World Examples of Brand Success

Several brands exemplify this approach in their marketing strategies. For instance, LEGO has successfully tapped into nostalgia by launching product lines that harken back to classic sets while also introducing new themes that appeal to younger audiences. Their marketing campaigns often emphasize creativity and community, reinforcing emotional connections with consumers.

Similarly, brands like Coca-Cola have embraced experiential marketing by creating interactive campaigns that encourage consumer participation. Their initiatives, such as personalized bottles and social media engagement, have allowed them to connect with consumers on a deeper level, fostering brand loyalty.

The Future of Licensed Products

As we look ahead, the licensed products market is poised for continued growth, driven by evolving consumer preferences and innovative marketing strategies. Brands that can adapt to shifting demographics and prioritize emotional connections will likely emerge as winners in this competitive landscape.

Strategies for Success

To thrive in the future, brands should consider the following strategies:

1. Embrace Digital Transformation: As consumers increasingly shop online, brands must enhance their digital presence and create seamless online shopping experiences. This includes investing in e-commerce platforms and leveraging data analytics to understand consumer behavior better.
2. Focus on Sustainability: As environmental concerns become more prominent, consumers are gravitating towards brands that prioritize sustainability. Brands that implement eco-friendly practices and transparently communicate their efforts can build trust and loyalty among consumers.
3. Leverage Social Media: Social media platforms serve as powerful tools for brands to connect with younger audiences. Creating engaging content and fostering community interactions can enhance brand visibility and consumer engagement.
4. Develop Integrated Experiences: Brands should aim to create holistic experiences that span across physical, digital, and hybrid channels. This could involve collaborations with other brands, events, and unique product offerings that resonate with consumers emotionally.

Conclusion

The licensed products market is at a pivotal moment, characterized by significant growth and evolving consumer dynamics. Brands like Disney continue to lead, but the competitive landscape is rich with opportunities for those willing to innovate and adapt. As purchasing behavior shifts towards younger generations, the emphasis on emotional connections, experiential marketing, and sustainability will shape the future of this industry. Brands that recognize and respond to these trends will not only thrive but also redefine the very essence of consumer loyalty in the licensed products market.

FAQ

What are licensed products?

Licensed products are items that companies produce under a license agreement with a brand owner, allowing them to use the brand's intellectual property, such as logos, characters, and trademarks.

How did Disney become the leading licensor?

Disney's success as a leading licensor stems from its iconic and diverse portfolio of characters and franchises, strategic partnerships, and a strong focus on branding and marketing.

What factors are driving the growth of licensed products?

Key factors driving growth include the increasing demand for branded merchandise, the rise of experiential marketing, and the importance of emotional connections in consumer purchasing decisions.

How are consumer preferences changing in the licensed products market?

Consumer preferences are shifting towards brands that align with personal values, offer meaningful connections, and create integrated experiences across various platforms.

What strategies can brands employ to succeed in the licensed products market?

Brands can succeed by embracing digital transformation, focusing on sustainability, leveraging social media, and developing integrated experiences that resonate with consumers.