Brands at Play: The Resilience of Toys and Games

This year, License Global’s Top Global Licensing Agents and Top Global Licensors report again highlighted the focal categories for brand owners worldwide for 2025. In both surveys, a combined 39.4% of brand owners and agents forecasted the continued importance of toys in the future of the $356.5 billion brand licensing business. As a category, toys and games have long played an essential role in expanding intellectual property, engaging everyone from kids to adults and bringing brands to life for fans of all ages. 

Despite facing challenging times, the toy business has shown remarkable resilience. After a decline in sales of licensed and non-licensed items in 2023, toy sales seem to have stabilized in the first half this year. This stabilization, in terms of value and units sold, is a testament to the industry’s ability to adapt and thrive. Sales grew by 1% across G12 countries from January to June this year versus the same period in 2023, generating $24.5 billion worldwide and holding momentum thanks to adult collectors, kidult culture and multi-generational play patterns, according to Circana.

Building sets became the main driver behind industry performance with 20% sales growth, followed by explorative toys, plush and vehicles. Film-related licensed toys accounted for 32% of the total toy market (value sales) in the first half – 5% higher than the same period in 2021 – and sales grew by 6% compared to 2023. 

Related:Circana Reports on First Half 2024 Global Toy Industry Retail Sales

Licensing International also highlighted the trend of classic and long-standing intellectual properties, taking both the box office and the toy aisle by force and being reignited in 2023.

Jane Neal, content editor, License Global, spotlighted the brands and intellectual properties at the box office continuing that trend this year, with “Deadpool and Wolverine” becoming the second billion-dollar film of the year within three weeks of release and Pixar’s “Inside Out 2” reaching over $1.6 billion globally as of August – each featuring a range of toys and licensed goods ahead of, and during, launch. However, toys don’t necessarily have to be tied to a film to do well, according to Neal’s report on Circana’s promising data. Pokémon is still in first position among the top brands and licenses globally for the fourth year running, according to Circana. Filling out the remaining top five properties are Squishmallows (Jazwares), “Star Wars” (Disney), Marvel Universe (Disney) and Hot Wheels (Mattel). These properties are, however, challenged by innovative new and expanding brands adapting to the ever-changing consumer. So far this year, the top five gaining properties include LEGO Icons – targeted at older consumers – the NBA sports license, the new collectible line, Miniverse, from MGA Entertainment and “Bluey,” which was a significant driver for animation, driving a 10% growth in consumer product sales, according to the BBC annual report 23/24.

At Brand Licensing Europe, we’re expecting to see the licensed toys and games market come to life once again as exhibitors and attendees take to ExCeL to discuss how to keep that momentum going. Major players such as Hasbro, which saw monumental growth through digital gaming in 2023 with “Monopoly Go!” and “Baldur’s Gate III” and Mattel, which is celebrating its 80th anniversary this year, alongside Jazwares, IMC Toys, Bandai Namco, Aurora, Alpha Group, NECA, Pokémon, Spin Master and Games Workshop, all are set to return, with leading intellectual property owners joining in force.As the industry continues to adapt, one thing is clear: the power of intellectual property to engage, entertain and inspire through toys and games remains as strong as ever. Brands are not merely surviving but thriving by tapping into a potent mix of nostalgia, creativity and forward-thinking innovation. This dynamic interplay between the old and the new is driving the industry forward, ensuring the future of licensed toys and games looks stable in the face of economic uncertainty. The convergence of nostalgic elements for adult collectors, new ways to play for children, the ongoing success of video games and the market’s synergy with toys is setting the stage for what could be a transformative year in 2025. As brands continue to leverage immersive experiences, consumer products and collaborations to emphasize cross-generational appeal, the market is poised to expand through a new wave of products and partnerships, creating new opportunities to maintain momentum at Brand Licensing Europe 2024.

This story was taken from the September 2024 issue of License Global. Read the full issue here …