The brand licensing market involves granting of permission by brands to third-parties to use their intellectual properties like trademarks, designs, characters, and logos on merchandise, packaging or within marketing activities for promotional purposes, in exchange for royalty payments. This allows brands to expand their product portfolio and increase their global footprint without making additional investments or compromising on quality. Growing popularity of celebrity and movie character licensing along with changing consumer preferences towards branded merchandise are driving the demand for brand licensing worldwide.

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

Key players: Key players operating in the Brand Licensing market are 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

Key opportunities: Rapid expansion of e-commerce platforms and social media is enabling brands to promote their licensed products to untapped markets globally. Furthermore, growing interest of millennials in personalized and specialty products is encouraging licensing of niche brands.

Global expansion: Major Brand Licensing Market Growth are focusing on expanding their licensing footprints in developing Asian economies like India and China owing to increased spending on lifestyle products. Furthermore, brands are exploring licensing opportunities in African markets to capitalize on the growing middle-class population.

Market drivers

Increasing focus of brands on revenue generation through licensing is a key driver behind the rapid Brand Licensing Market Size and Trends. Licensing allows brands to earn substantial royalty payments without substantial investments. This provides brands an opportunity to diversify their revenue streams. With rising popularity of celebrity and fictional character licensing, more brands are opting for licensing to leverage the popularity of such icons and characters.
PEST Analysis

Political: The licensing policies and regulations in various countries and regions impact the licensing agreements between brands and manufacturers. Stringent quality controls and environmental norms also affect market dynamics.

Economic: Factors like rising disposable incomes, changing consumer spending patterns, and economic growth especially in developing nations contribute to the demand for licensed consumer products.

Social: Products launched under popular brands appeal to consumers' sense of social belonging, identity, and status. Younger generations highly value self-expression through fashion and accessories.

Technological: Digitization leads to new opportunities like digital brand merchandising and virtual product launches. Technological innovations help manufacturers maintain quality standards and design aesthetically appealing products at competitive prices.

The North American and European markets currently account for the major share of the global brand licensing market in terms of value. The United States alone contributes over 30% owing to the high spending power of consumers and strong brand culture. Large conglomerates hold licensing rights to multiple international brands which are popular among the masses.

The Asia Pacific region excluding Japan is projected to be the fastest growing geographical segment during the forecast period. Rapid economic development, rising middle class, changing lifestyles and aspirations are driving the demand for licensed lifestyle products especially in populous nations like China and India. Local and regional brands are also exploring licensing deals to expand their reach across the developing Asian markets.

About Author:

Vaagisha brings over three years of expertise as a content editor in the market research domain. Originally a creative writer, she discovered her passion for editing, combining her flair for writing with a meticulous eye for detail. Her ability to craft and refine compelling content makes her an invaluable asset in delivering polished and engaging write-ups.

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