Brand licensing refers to the practice of licensing trademarks from brand owners to manufacturers for production and distribution of various goods and services across categories. Brand licensing provides a source of additional revenue for brand owners and expands their product portfolio and market reach without direct investment or operations. It allows brand owners to leverage their brand names across consumer goods categories such as apparel, accessories, beauty and cosmetics, electronics, homeware, and collectibles among others. Brand licensing has become a popular marketing strategy for established brands to increase brand promotions, tap new markets, and gain competitive advantage.
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.
Brand Licensing Market Growth as an effective marketing tool for companies to promote their brands and expand consumer touchpoints. Growing consumer demand for popular lifestyle brands on various products has boosted licensing agreements between brand owners and manufacturers. Additionally, increased digitalization and availability of products online have increased promotional avenues for licensed products.
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
These companies generate significant revenues through licensing their brands to various consumer goods categories.
Key opportunities in the market include developing new product categories under popular brand names and expanding to international markets. Manufacturers are keen on licensing deals with prominent global and local brands to establish market presence.
Global expansion is another major focus area. Leading brands are focusing on extending their licensing portfolios to emerging markets through strategic local partnerships. Asia Pacific and Latin America offer high growth potential owing to rising disposable incomes and growing affinity towards global brands.
Market Drivers
Increased brand promotion: Brand Licensing Market Size and Trends provides an effective way for companies to promote brands through association with trendy consumer products. This drives higher brand awareness and recall.
Rising disposable incomes: Consumers in developing nations now have increased spending power on branded premium and lifestyle goods. This boosts demand for licensed merchandise across regions.
Market Restraints
Stringent quality controls: Brand owners impose strict quality standards and guidelines for licensed products to protect brand image and ensure consistency in customer experience. This increases operational costs.
Cultural adaptation: Licensed products need to account for local consumer preferences, cultural contexts and regulations while extending to international markets. This poses challenges regarding design and marketing adaptation.
Segment Analysis
The brand licensing market for apparel dominates the overall market. Licensing of apparel brands helps companies expand and diversify their product offerings. It also allows brands to reach wider audiences at low costs. Children apparel holds a sizeable share in the apparel segment due to growing preference of parents towards branded clothes for their children. This sub-segment is expected to remain dominant during the forecast period due to rising disposable incomes of families and increasing willingness to spend on children's clothing brands.
Global Analysis
The Asia Pacific region is projected to grow at the highest CAGR during the forecast period. Rising urbanization and growth in middle-class population in countries like China and India are key factors driving demand for branded clothes. Abundant opportunities for western brands to enter emerging markets further support the market growth in Asia Pacific. North America currently holds a major share of the global brand licensing market. Presence of several key players and high demand for lifestyle brands from consumers keep North America at the forefront. Europe holds a significant share attributable to growing adoption of co-branded products across various industries in the region.
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