License Global has released the annual Top Global Licensors Report, which examines retail sales of licensed consumer products for 2021.
The report confirms findings by The Licensing Letter’s annual Licensing Sales Report that the licensing sector recovered significantly in 2021 from the impacts of the pandemic. The Licensing Sales Report is available to subscribers in the current issue of The Licensing Letter magazine at THIS LINK.
Some of the main takeaways from the Top Global Licensor’s Report include:
- The annual report shows total revenue of $260.8 billion from the 88 companies surveyed
- The top 10 licensors played a major role in stabilizing the licensing sector’s recovery
- Forty of the brand licensors bring in at least $1 billion at retail individually
- Seven new companies made the list, including Bandai Namco Group, Serta Simmons Bedding, Nissan Motor Corporation, BMW Group, Turnowsky, Bromelia Produções, and DeAPlaneta Entertainment
The revenues reported in the Top Licensor’s Report does not represent the full global revenues of the licensing industry, but rather serves as a benchmark of the overall strength of the industry. This year the total revenue for licensed consumer products at retail reported by the 88 licensors featured accounts for $260.8 billion, with 40 of those brand licensors bringing in at least $1 billion individually.
License Global surveyed its readership between April and May to directionally inform the annual editorial forecast and better understand the licensed consumer product market. The publication says this section of the report titled “The Brand Owner’s Survey: Brandscape 2022/23” is a result of that survey and the data collected, unless otherwise noted by source.
The most important data reported by the licensors is that the world’s top licensor’s experienced a significant recovery in 2021 in comparison with 2020, when the pandemic caused a variety of licensing sectors to experience a major drop in revenues.
“For the 2022 edition, this year’s top ten licensors play a substantial role in stabilizing the market, with nearly all reporting significant year-on-year growth,” the report says. “Notably, The Walt Disney Company holds firm to its designation as the world’s leading licensor, reporting an estimated $56.2 billion, marking a $2.2 billion in growth year-on-year. Other standout companies and notable figures include:
- Authentic Brands Group, the No. 3 Top Global Licensor, had the biggest revenue growth year-on-year, reporting a $7.9 billion gain over the fiscal year 2020.
- Significant movement from The Pokémon Company International (+$3.4 billion) and Dotdash Meredith (+$5.8 billion).
- In total, the latest Top Global Licensors Report shows an upward revenue growth for licensed consumer products at retail of+$39.6 billion from the fiscal year 2020 to 2021.
- Fashion was indicated as the leading brand category currently held by licensees (70%), followed by Entertainment (i.e., streaming and gaming) and Lifestyle categories (i.e., home and beauty) at 60%, with Corporate Brands at 50%.
“Last year was a critical time for brands and retailers across all product categories as they reassessed how to support and engage with consumers amid year two of the pandemic,” said Amanda Cioletti, Vice President, Content and Strategy at the Global Licensing Group, Informa Markets. “While challenges persist, a common – and very welcome! – theme we saw woven throughout this year’s report is the unmistakable positive shift in tone as brands adapt and recover.
“All of the returning and new brands featured in the Top Global Licensors Report held a significant role in driving retail revenue, showcasing the immense power of licensed consumer products and brand extension as proven methods to engage with consumers, even amid the most challenging of times,” she added.
The results tally with key findings in The Licensing Letter’s annual Licensing Sales Report, which compiles data from an annual survey, as well as a collated collection of data from major economic research organizations.
“Through our survey and other research, The Licensing Letter has found that the licensing industry powered through the second year of the pandemic in stellar form, largely recovering from the impact of a pandemic that caused major declines in some sectors in 2020,” wrote TLL Editor in Chief Gary Symons.
In this year’s Licensing Sales Survey, 61% of respondents told us their retail revenues rose in 2021, and only 8.7% saw a decrease in revenues. That is a near total reversal of the situation in 2020, when only 25.5% said they enjoyed an increase in sales, and a whopping 45% said they experienced a decrease.
“The turnaround says a lot about the industry’s ability to adapt to difficult times,” said Symons.
A further 26% of respondents said their revenue stayed the same in 2021 compared to 2020, a figure very similar to the number who said their 2020 revenue mirrored their 2019 revenue.
So, the main headline for this year’s Licensing Sales Survey is that, overall, the industry saw an impressive recovery for the year, despite continuing issues with global logistics, including COVID-related factory closures, shipping delays, and higher container costs.
License Global’s report covers a wide cross-section of verticals, from entertainment and characters to art and design, sports, gaming, automotive, home goods, fashion and apparel, and more.
The report also lists the top global licensors for fiscal year 2021, including:
- The Walt Disney Company – $56.2B
- Dotdash Meredith – $35.9B
- Authentic Brands Group – $21.7B
- WarnerMedia/Warner Bros. Consumer Products – $15B
- The Pokémon Company International – $8.5B
- Hasbro – $8.4B
- NBCUniversal/Universal Brand Development – $8.3B
- Mattel – $7.4B
- Bluestar Alliance – $6.5B
- Paramount Global/Paramount Consumer Products and Experiences – $6B
You can download the complete Top Global Licensors Report HERE.
TLL’s annual Licensing Sales Report is available for subscribers HERE.
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