Licensed Toy Market Size – By Product Type, By Price Range, By Age Group, By End-Use, By Distribution Channel, Analysis, Share, Growth Forecast, 2024 - 2032

Licensed Toy Market Size

The global licensed toy market was valued at USD 28.9 billion in 2023 and is estimated to grow at a CAGR of over 4.7% from 2024 to 2032.
 

It is true that technologies such as AR, VR, or AI are becoming an integral part of licensed toys for kids. All these technologies help to enhance the interactivity and interconnectivity of the toy, implying an appeal to a more technologically accomplished demographic, which includes the ever-growing collector community comprising of adults who are fond of thrilling franchises, including Star Wars, Marvel, or Harry Potter. Limited edition niche collectibles for movies, games, and anniversaries are increasingly becoming popular, and the market for such keeps expanding.

Licensed Toy Market Trends

This trend seems to be repaid by the parents as they appreciate branded educational toys and, for example, endorse Lego Education or PBS Kids due to its effective fusion of fun and brain-enhancing entertainment, especially STEM learning.
 

Licensed Toy Market Analysis

E-commerce now controls the global toy market, which offers more expansive access to licensed toys' revenue. Selling exclusives online, such as through Amazon and Walmart, has improved sales. Likewise, cross-linking of licensed toys from movies, TV, games, and other social media has proven most profitable. Multi-platforming allows sustaining consumers' interests in both franchises and their toys.
 

Less established producers usually regard the expenses of purchasing licensing rights for famous franchises to be very high and refrain from entering the market. Moreover, the proliferation of fake toys in the Asian markets devastates the reputation of a brand and causes substantial revenue losses to the manufacturers of licensed toys.
 

• Based on product type, the licensed toy market can be segmented into action figures, dolls & plush toys, arts & crafts, games & puzzles, outdoor & sports toys, construction sets, educational toys, and others. In 2023, revenue from the licensed action figures segment was around USD 6.6 billion, which is expected to increase at an estimated CAGR of 5.4% over the next 8-9 years spanning from 2024 to 2032. The large fan following for action figures comes from its blockbuster franchises such as Marvel, DC Comics, Star Wars, and Transformers.
   
• The appeal of these action figures, due to their association with popular movies, famous television series, or video games, ensures their explosive demand coupled with vast market reach. Hot Toys, Hasbro, and McFarlane Toys are among those dedicated to the making of high-end, collectible, action figures. Such clients and audiences are willing to pay a higher margin over the average selling price, making these products highly profitable.

• Based on the end-use, the global licensed toy market is categorized as individual and commercial. The commercial part accounted for approximately 56% of the overall market in 2023 and is projected to expand at a CAGR of 4.8% throughout the forecast period. Walmart, Target, Toys `R’ Us, and other large chain stores, as well as many independent hobby shops, carry licensed toys.
   
• Such partnerships will not only enhance distribution but also provide assured shelf space for the items and offer an opportunity to launch new products, thus increasing the demand in the commercial sector. Licensed toys are widely used by theme parks and attractions, including those owned by Disney, Universal Studios, and LEGO, as merchandising – usually as part of the franchise.

• The U.S. licensed toy market accounted for revenue of around USD 6.1 Billion in the year 2023 in North America and is estimated to grow at a CAGR of around 4.8% from 2024 to 2032. Home to Disney, Warner Bros, and Marvel Studios, the US tops the entertainment industry, and the US has created huge franchises like Star Wars, Harry Potter, and Frozen. 
   
• These franchises, when averaged with the release of a movie or show, drive high sales for merchandise such as toys and other licensed items. Additionally, the US is a hub for popular fan conventions and collector communities such as Comic-Con and Star Wars Celebration, making the US market stronger since these activities and communities act as a strong incentive for changes.
   

North America: Hasbro, Mattel, and Funko are North American companies that manufacture licensed toys. They are known for their creativity and are leaders in creating trends. Above all, North American manufacturers set global standards and are at the forefront of the changing global toy industry. New technology, sustainability, or simply new interactive toys themselves are examples of innovations offered. In the San Diego Comic-Con, D23 Expo, and other fan conventions, licensed toys get enough attention. Such events generate international interest in limited-edition collectibles, which, in turn, boosts the demand for such items in global markets, thus influencing the strategy for ensuring future releases of toys.
 

Europe: Germany licensed toy market can be regarded as the European center of high-quality toy production. Companies such as Playmobil, Ravensburger, and Schleich also make licensed toys, which enjoy an increasing market acceptance in Germany due to their safety and quality standards. Besides, it is Germany which is propounding greater emphasis on education as well as on skill development, which complements the ongoing increase in demand for licensed STEM-based toys and educational games. In Germany, for example, the LEGO brand and Ravensburger puzzles are very popular, and these toys are licensed products.
 

Asia Pacific: China’s population growth has led licensed toy industry to an increase in middle-class households. As a consequence, parents have started spending more money on higher-end educational toys. It has led to an increase in demand for well-reputed franchises such as LEGO, Disney, and Marvel. Furthermore, "Pleasant Goat and Big Big Wolf," "Boonie Bears," and "Monkey King" are enabling the increase in demand for licensed toys in China as well as across Asia. As a result, these toys are able to compete with the global market.
 

Middle East: The licensed toy market in Saudi Arabia has been prosperous owing to the increase in demand amongst those aged under fifteen. Toys featuring a collaboration with Disney, Marvel, and Barbie are a great hit. The reach of big retail alternatives like Toys “R” Us or Virgin Megastore, as well as local favorites such as Extra Stores, offers easy access to branded toys. In addition, the malls in the Middle East provide easy access to children’s toy brands as well.
 

Licensed Toy Market Share

The market highlights a competitive environment bursting with players that run the gamut from international corporations to local producers and niche businesses. Such companies include The LEGO Group, Mattel, Hasbro, the Bandai Namco Holdings Incorporation, and Spin Master Corporation, which command a high market share due to their extensive portfolio and their strong brand equity. The e-commerce boom has expanded online sales channels so that brands access more audiences and can increase customer interaction through digital marketing.
 

Licensed Toy Market Companies

Major players operating in the licensed toy industry are:

• Bandai Namco Holdings Inc.
• Basic Fun!
• Fisher-Price (Division of Mattel)
• Funko Inc.
• Hasbro Inc.
• JAKKS Pacific Inc.
• LEGO Group
• Mattel Inc.
• Mega Brands Inc. (Owned by Mattel)
• Melissa & Doug LLC
• Playmobil (Brand of Geobra Brandstätter Stiftung & Co. KG)
• Ravensburger AG
• Spin Master Corp.
• Tomy Company Ltd.
• VTech Holdings Ltd.
   

Licensed Toy Industry News

• In November 2024, the LEGO Group made a stupendous announcement about joining hands with the world of Formula 1 for the purpose of creating auto racing toys. From the beginning of January 2025, 17 new products have been unveiled under the LEGO City and the Duplo toy ranges, available for all fans of Formula 1. This engagement not only marks the first licensed deal ever for LEGO but also brings the thrill of motorsport together with LEGO’s creativity and innovation.
   
• In March of 2022, the focus was on Mattel, which signed a multi-year global licensing agreement with Universal Brand Development with regard to the widely loved franchise of DreamWorks Animation, the Trolls. As a result of this agreement, Mattel obtains exclusive rights to develop, manufacture, and sell a wide series of products and toys based on the hugely famous Trolls franchise.
   

This Licensed Toy market research report includes in-depth coverage of the industry with estimates & forecast in terms of revenue (USD Billion) & volume (Billion Units) from 2021 to 2032, for the following segments:

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Market, By Product Type

• Action Figures
• Dolls & Plush Toys
• Arts & Crafts
• Games & Puzzles
• Outdoor & Sports Toys
• Construction Sets
• Educational Toys
• Others (Vehicles, Etc)

Market, Price Range

• Low
• Medium
• High

Market, Age Group

• Below 1 Yrs.
• Age 1- 3
• Age 3- 5
• Age 5- 12
• Age 12+

Market, End-Use

• Individual
• Commercial

Market, Distribution Channel

• Online
  • E-Commerce Website
  • Company Owned Website 
• Offline
  • Hypermarket/Supermarket
  • Departmental Stores
  • Specialized Stores
  • Other Retail Stores

The above information is provided for the following regions and countries:

• North America
  • U.S.
  • Canada
• Europe
  • UK
  • Germany
  • France
  • Italy
  • Spain
  • Russia
• Asia Pacific
  • China
  • India
  • Japan
  • South Korea
  • Australia 
• Latin America
  • Brazil
  • Mexico 
• MEA
  • UAE
  • Saudi Arabia
  • South Africa