Animated content and sports drive toy licensing growth in Europe: Report  

Licensed toys have continued to outperform the overall toy market in 2024, according to new data published by Circana, an advisor on the complexity of consumer behaviour.

According to Circana’s State of the Toys Consumer: Teens & Adults report, licensed toy sales have grown by 2.4 per cent in Europe (EU5: France, Germany, Italy, Spain and the UK) curbing an industry decline of 3.1 percent during the first seven months of this year, thanks in part to the popularity of major sporting events this summer, including the UEFA Football Championships (Euro 2024).

Licences now represent 28.8 percent of total toy sales in EU5 with licensing gaining share in every country. Top gaining licences in Europe this year were UEFA National – European Cup, Disney’s Lilo & Stitch and Mercedes Benz, displaying the breadth of licences embraced by the toy market.

As an effect of well known franchises like Star Wars, Marvel and Pokémon distributing more content on streaming platforms in addition to cinema and entertainment, has led to a boost in toy licensing. The toy industry has also seen recent incremental growth thanks to older consumers, with the big studios focusing on fans and particularly older fans. The report has mentioned that Star Wars is unique in the industry, with over half of total sales among consumers aged over 12 years, while Pokémon is also growing its share among older fans.

That said, sport licences, with 2.2 per cent of overall toy sales in Europe, are the main growth driver (an increase of 34 per cent) this year. Toys derived from anime represent an even larger share, with 5.8 per cent of total toy sales and also contributing to growth, up eight per cent year-on-year. The rising popularity of anime in the European market has been facilitated by the likes of streaming giants, Netflix and Amazon, and dedicated animé platforms such as Crunchyroll.

Circana UK toys director Melissa Symonds commented, “The UK really embraces both characters and licences. Football, of course, is particularly strong here and with England’s men making it through to the final of the Euros, sales of related merchandise did really well despite the team falling short against Spain. In a year with fewer blockbusters, the toy industry was able to successfully pivot from big screen names to small screen legends and sports heroes.”

Future trends

Major film releases will resume in the final quarter of this year with Wicked, Sonic and the Moana sequel which may lead to growth in the sales of their licensed toys and other merchandise. As for 2025 the franchises like Jurassic World, Superman, James Cameron’s Avatar, Fantastic Four, Captain America, and Gabby’s Dollhouse, and live action movies, Minecraft and Stitch, will also provide a lot potential for sales of toys and action figures of the respective franchises

Circana global toys industry advisor added, “Even if the box office drives the bulk of consumer product sales, licensing is more than just what’s on the big screen for the toy industry; it’s about collaborations with consumer brands, sports teams and motor vehicles, video games and music content, as well as shows from streaming platforms. It’s about building new franchises for new generations, but also nurturing fandom and nostalgia, particularly among older toy buyers. Most of the major franchises are fuelling this fandom among kids and adults who enjoy buying merchandise of their favourite characters. It’s a lucrative market with a healthy pipeline.”

Circana is a market research and technology company based in Chicago, USA. The company was formed in 2022 and helps businesses understand consumer behaviour and make better decisions. The research company serves a wide variety of industries including manufacturing, retail, video games, books and kids products.