At Licensing Expo last month, Ben Roberts, EMES content director for License Global, presented some of the findings of the annual reports License Global conducts into the brand licensing industry, providing an overview of the trends and ‘state of the nation.’
Ben began by pretexting that a long time ago, brand licensing used to be about logo slapping but it has evolved exponentially since then.
“Brand licensing is now a business model built on the emotional connection between the buyer and the brand, through products, experiences, collaborations,” he said. “It’s no longer about building revenue, it’s about building awareness, building hype, and gaining personal connections.”
Ben added that “It’s all getting rather successful.” The data from the License Global survey found that global sales of licensed merchandise in 2024 saw a 3.7% growth and is equivalent to the GDP of the Czech Republic.
Using this data, License Global can forecast trends and biggest sectors for the coming year and beyond.
At the very top every year is fashion: “Brand licensing leans upon identity, it leans on the family. There’s no faster, more stylish way to do that than fashion,” said Ben.
Next was food and beverage, a sector that has previously been lower but become important since Covid, when people were locked in and lent on comfort and what brought them joy.
Toys and games have been going through a turbulent time due to tariffs but still very much of importance. The phenomenon of ‘kidults’ buying toys for themselves, such as figurines, collectibles is really propping up the market,” Ben commented.
Footwear continues to be big, and be creative in a different way utilising colourways. Meanwhile, health and beauty leans on emotional collection and is an area where consumers are looking for fun e.g. a Toy Story make up palette.
Location based experiences blew up after Covid because everyone wants to make memories again “It’s a generational shift,” said Ben, “We want to buy moments, we want to buy memories.”
And you no longer have to be a huge brand to have experiences, with the potential of pop-ups and VR experiences. “It’s more accessible to brand owners which means it’s more creative.”
Gaming is also now everywhere and will continue to grow; there are currently 3.8 billion players worldwide. The time consumers spend on a game can clock up countless hours, far more than with TV series. This long-term engagement to a narrative sucks you in as an immersive experience. Therefore, it is driving a lot of opportunity with brand licensing, such as with in-game licensing. This allows brands to create moments in the game e.g. in Call of Duty with characters such as Terminator.
Mobile gaming is going to grow, said Ben, “Phones are getting more powerful and games getting more in-person.”
The food and beverage sector is getting increasingly creative, such as Guiness Mac and Cheese, and Eggo lunch in a jar. People want to try it, then share it on socials, which drives awareness and sales.
Looking at a generational forecast, Millennial is at the top of the consumer share as they have the most disposable income and love brands; they grew up with more content than any generation and now have more choice than ever before. Millennials are also now bringing in their families so Gen Z and Gen Alpha.
Gen Z is coming up in the world; they are the next decision makers, the next credit card holding adults. This generation are way more into experiences and memories and seek authenticity.
