BRAND LICENSING MARKET SIZE AND SHARE ANALYSIS - GROWTH TRENDS AND FORECASTS (2024-2031)

Brand Licensing Market Size and Forecast – 2024-2031

Global Brand Licensing Market is estimated to be valued at USD 27.65 bn in 2024 and is expected to reach USD 37.62 bn by 2031, growing at a compound annual growth rate (CAGR) of 4.5% from 2024 to 2031.

Key Takeaways from the Brand Licensing Market Report:

• Apparels are anticipated a market share of 51.8% share in 2024.
• Entertainment enjoys the highest market share of 39.3% in 2024.
• North America is a leading market with a projected share of 42.1% share in 2024.
• Asia Pacific is the fast-growing market expected to account for 32.5% market share in 2024.

Market Overview:

Brand licensing has become a prominent means for brands to generate additional revenue and establish partnerships as the market has witnessed a steady growth in the recent past. Trends in the market indicate a rising demand for brand licensing deals across diverse industries such as toys, food and beverages, apparel, and personal care. Consumer preference for established brands coupled with the willingness of companies to pay premium prices for strong brand associations are driving greater collaborations. Popular culture figures and characters also experience increase in monetization channels through licensing agreements.

Segmental Insights

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Type Insights: Peaked Demand for Branded Apparels

By Type, Apparels are expected to lead in 2024 with a projected market share of 51.8% share in 2024. The apparel segment has long dominated the brand licensing market share due to the ubiquitous nature of clothing. Wearing branded apparel is a subtle yet powerful way for consumers to express their interests and affiliations. Whether it's a classic logo t-shirt from a favorite sports team or a stylish top printed with a famous character, branded apparel allows people to showcase what they love through their wardrobe.

Application Insights, Engaged Fanbases and New Revenue Streams Drives Entertainment

The entertainment segment currently commands the highest market share with a projected market share of 39.3% in 2024. Thanks to engaged fan communities and innovative new monetization strategies. Whether film, television, music, or gaming, entertainment properties cultivate passionate followings that flock to branded merchandise. Licensing expands the revenue potential of popular franchises and characters into physical goods. Engaged fanbases form a built-in customer base hungry for officially licensed products representing their favorite shows, movies, artists, and games.

Regional Insights

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North America Brand Licensing Market Trends

North America is a leading market with a projected share of 42.1% share in 2024. The dominance in the brand licensing market can be attributed to the robust presence of major companies and brands. Strategic partnerships and licensing of popular intellectual properties have boosted new product development. A supportive regulatory environment and sophisticated consumer base have also facilitated market growth.

Asia Pacific Brand Licensing Market Trends

Asia Pacific is expected to exhibit the fastest growth with 32.5% market share in 2024. The growth is  driven by rising incomes, urbanization, and a growing middle class with purchasing power in countries such as China, India, and Southeast Asia. Local brands are increasingly leveraging the licensing model to expand their reach in both domestic and global markets.

Brand Licensing Market Outlook for Key Countries

United States Brand Licensing Market

The brand licensing market in the U.S. has seen significant changes in recent trends that have influenced growth opportunities. With the rise of conscious consumerism, there is an increased focus on brands that support good causes, sustainability and social responsibility. Licensees are seeing commercial success by aligning their products with licensors who have strong missions and values that resonate with today's customers. For example, non-profit organizations are increasingly licensing their brands to boost awareness and raise funds.

China Brand Licensing Market

In recent years, there has been a significant rise in the number of Chinese brands that are seeking to grow their domestic and global presence through brand licensing deals. An increasing number of Chinese companies recognize the commercial potential of leveraging their intellectual property by partnering with licensees that have expertise in product development and diverse distribution networks. This trend has been driven by growing national pride in Chinese brands as the country's economy and global clout expands. More Chinese consumers are seeking out products from domestic brands that they feel represent their culture and values. This domestic demand has encouraged Chinese brands to protect and promote their identities internationally through strategic licensing programs.

India Brand Licensing Market

The brand licensing market in India has seen significant changes in recent years due to evolving licensing trends. With growing awareness and acceptance of global brands among Indian consumers, many international brands are actively pursuing licensing partnerships to expand their presence in the Indian market. This allows brands to leverage local manufacturers' expertise to cater to domestic demand in a more cost-effective way, especially for product categories requiring complex manufacturing processes or significant customization.

Japan Brand Licensing Market

Over the past few years, there has been a noticeable rise in popularity of Japanese pop culture such as anime, manga and video games globally. This growing international audience for uniquely Japanese cultural properties has significantly boosted the Japan Brand licensing market. Properties from well-known Japanese video game and animation franchises are much sought after for licensing deals by merchandisers and manufacturers around the world. As a result, many Japanese intellectual property (IP) owners are aggressively expanding their brand licensing programs overseas. For example, leading Japanese game publisher Capcom has reported significant year-over-year increases in licensing revenues from its top game brands abroad including Monster Hunter and Resident Evil.

Brazil Brand Licensing Market

Brazil's brand licensing market has seen significant changes in recent trends that are influencing growth opportunities. There is a rising focus on developing licensable brands that reflect Brazil's vibrant culture and celebrate diversity. Properties featuring strong Brazilian identities, themes of social issues and local heritage/traditions have become very popular among consumers. For example, properties based on Brazilian folklore creatures like "Curupira" which promotes environmentalism or shows highlighting indigenous communities are seeing growing demand in licensed products. 

Market Players, Key Devlopment, and Competitive Intelligence

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Key Developments:

• In January 2024, Authentic Brands Group (ABG) Acquired Sperry, ABG purchased the iconic footwear brand Sperry from Wolverine World Wide. Subsequently, ABG licensed Sperry's North American operations to the Aldo Group, aiming to leverage Aldo's retail expertise to expand Sperry's market presence.
• In June 2024, Hanesbrands revealed plans to sell the Champion brand to ABG for USD 1.2 billion. This strategic move is intended to streamline Hanesbrands' portfolio and allow ABG to further develop Champion's global reach through targeted licensing agreements.
• In August 2024, Versace introduced its Mercury sneakers using augmented reality (AR) and gaming platforms like Fortnite and Snapchat. This innovative approach aimed to engage digital-first consumers and expand brand reach through virtual activations.
• In September 2024, Gucci retained its position as a leader in luxury brand innovation, closely followed by Hugo Boss and Versace. The brand's continuous investment in digital experiences and virtual activations has reinforced its market position.

Top Strategies Followed by Brand Licensing Market Players

Established Players: Leading companies significantly invest in research and development to launch innovative products. Nike spends over USD one billion annually on R&D to develop advanced athletic shoes and apparels. Adidas also dedicates significant resources to labs focused on developing cutting-edge fabrics and designs. This extensive R&D allows them to maintain industry leadership. Large players often partner with other major brands to augment their product lines.

• For example, Disney has licensing deals with many toy and clothing brands to promote its movies and characters. Marvel similarly collaborates with various manufacturers to bring its superheroes to different merchandise categories. Such strategic alliances help maximize revenue streams.

Mid-Level Players:  Medium players focus on affordable pricing to attract cost-conscious buyers.

• For example, In India, mid-level apparel brands replicate the styles of global luxury brands like Gucci, Zara, or Sabyasachi. These brands use lower-cost materials but maintain reasonable quality, allowing cost-conscious buyers to access fashionable designs. Affordable pricing enables these brands to cater to a larger demographic.
• Mid-sized players leverage tie-ups to bolster manufacturing. Sport-O-Rama works with small factories to outsource production of its low-cost soccer gear. It has grown to over 50 outlets in 5 years with this scalable model. Kingdom Apparel also partners with tribal artisans, helping both parties expand.

Emerging Startups – Brand Licensing Industry Ecosystem

• Innovative Technologies: Tech startups like Nanotronics are developing smart fabrics integrated with sensors and computers. SenseIt applies AI to enable appliances and home security systems with touch interfaces.
• Sustainable Solutions: Better Pack uses recycled cardboard and corn starch for eco-friendly lunch boxes. Ethical Ocean applies blockchain to track sustainable fishing practices and combat illegal activities. Such startups can revolutionize the industry through novel sustainable solutions.
• Market Contribution: Startups often collaborate to broaden their expertise and market reach. SenseIt partners with Smart Home Inc. to launch a virtual assistant product powered by its AI-enabled fabrics.

Market Report Scope

Market Dynamics

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Market Driver - Increasing Population and Electricity Demand

As the global population continues to steadily grow year after year, it has put increasing strain on power grids and electricity generation abilities around the world. Recent estimates released by the United Nations show that worldwide population reached nearly eight billion people as of late 2022, representing a growth of over one billion people in just the past 12 years alone. Much of this population increase has been concentrated in developing regions of Asia, Africa, and South America. As populations in these areas continue to swell with more individuals moving to urban centers and seeking higher standards of living, demand for electricity to power homes, businesses and overall development activities have also sharply increased. Government statistics from India for example indicate that annual electricity consumption across the residential, commercial and industrial sectors grew by over 50% from 2010 to 2020.

Market Challenge - High Initial Installation Costs

One of the major challenges that the brand licensing market faces is the high initial installation costs associated with setting up brand licensing operations. Entering a new market through brand licensing requires businesses to invest heavily in market research, negotiating licensing agreements, developing brand guidelines and controls, educating and training licensee partners, and marketing and promoting the brand. This upfront investment can run into several millions of dollars. For many small and medium businesses, finding the capital required for these initial setup costs poses a significant barrier to adopting a brand licensing strategy and expanding into new markets. High costs also deter potential licensee partners who may not want to take on a large financial commitment without a proven track record of sales. Managing these high initial expenses remains a challenge that businesses must overcome to capitalize on the opportunities afforded by brand licensing.

Brand Licensing Market Opportunity- Off-grid and Decentralized Renewable Energy Systems

One of the major opportunities for the brand licensing market lies in the rising segment of off-grid and decentralized renewable energy systems. As reliable electricity access remains out of reach for millions globally, especially in rural areas of developing nations, the market for small-scale solar home systems and mini-grids powered by renewable energy sources is growing rapidly. Brand licensing provides an effective strategy for established energy companies to enter this off-grid market by partnering with local manufacturers and suppliers through licensee agreements. This decentralized business model helps drive down costs and accelerate the deployment of renewable energy solutions in remote communities currently underserved by national power grids. The expansion of brand licensing arrangements focused on off-grid energy systems can thus tap into substantial commercial potential and fulfill the pressing social need of expanding access to clean and affordable energy worldwide.

Analyst Opinion (Expert Opinion)

• The brand licensing market continues to benefit from the growing popularity of brand extensions. As more consumers seek familiarity in their purchases, licensed brands provide a sense of trust and quality. North America has long dominated global licensing revenues due to the size of the U.S. consumer market and culture of branded merchandise. However, Asia is emerging as a fast-growing licensing hub led by China. One driver is the rise of middle-class populations with disposable incomes in developing markets.
• While licensing allows brands to reach new audiences and generate additional revenue streams, it also risks oversaturation and dilution of the original brand equity if not carefully managed. Quality control is a challenge as licenses are issued to third parties across product categories worldwide. Economic downturns pose a threat as discretionary consumer spending is often the first to be cut. Younger demographics now demand instant access to media on their smartphones, posing a restraint to licensing of traditional television and film properties.
• Opportunities lie in leveraging current events and pop culture trends to develop short-lived licenses before public interest shifts. Successful examples include fashion collaborations between lifestyle brands and content properties. Licensing also enables brands to pursue new revenue opportunities through interactive experiences on digital platforms.

Market Segmentation

• Type Insights (Revenue, USD Bn, 2019 - 2031)
• • Apparels
  • Toys
  • Home Decoration
  • Others
•  Application Insights (Revenue, USD Bn, 2019 - 2031)
• • Entertainment
  • Corporate Trademarks
  • Fashion
  • Sports
  • Others
• Regional Insights (Revenue, USD Bn, 2019 - 2031)
• • North America
    • U.S.
    • Canada
  • Latin America
    • Brazil
    • Argentina
    • Mexico
    • Rest of Latin America
  • Europe
    • Germany
    • U.K.
    • Spain
    • France
    • Italy
    • Russia
    • Rest of Europe
  • Asia Pacific
    • China
    • India
    • Japan
    • Australia
    • South Korea
    • ASEAN
    • Rest of Asia Pacific
  • Middle East
    • GCC Countries
    • Israel
    • Rest of Middle East
  • Africa
    • South Africa
    • North Africa
    • Central Africa
• Key Players Insights
  • The Walt Disney Company
  • Meredith Corporation
  • PVH Corp.
  • Iconix Brand Group
  • Authentic Brands Group
  • Universal Brand Development
  • Nickelodeon (ViacomCBS)
  • Major League Baseball
  • Learfield IMG College
  • Sanrio