2017 LIMA Global Licensing Industry Survey
LIMA announced the results of its Third Annual LIMA Global Licensing Industry Survey, quantifying worldwide royalty revenue and accompanying retail sales. According to the report, revenue derived from sales of products and services bearing trademarked names and likenesses of cartoon characters, corporate logos and brands, major sports teams and more totaled an estimated US$262.9 billion in retail sales in 2016 – a healthy 4.4% increase over 2015. Royalty revenue grew to US$14.1 billion.
By category, the licensing industry continues to be dominated by Character & Entertainment, Corporate Trademarks, Fashion, and Sports. Together, they represented 87.2% of all licensing revenues in 2016. Character & Entertainment, by far the most dominant category, accounted for 45% of the total and was more than double the next highest category, Corporate Trademark, at 20.8%.
Entertainment/Character licensing remains the largest industry category, accounting for US$118.3 billion, or 45% of the total global licensing market. Corporate/Brand Trademarks was the next biggest property type, generating US$54.6 billion in retail receipts for 20.8% of total revenues, followed by Fashion, with US$31.1 billion (11.8% of the total), and Sports at US$25.3 billion (9.6%).
The survey was conducted for the third straight year for LIMA by Brandar Consulting, LLC.
“The 2017 Survey reinforces the positive momentum of licensed products worldwide and across all categories, especially the large and growing Entertainment/Character sector,” said LIMA President Charles Riotto. “This year’s results also speak to the impressive reach and strength of licensing initiatives in growth markets around the world, contributing to the continued vitality of the industry.”
Among product categories, Apparel led the way with 14.9% of total global licensed retail sales, followed by Toys at 13.3% of the total, and Fashion Accessories at 11.3%. The fastest growing categories were Infant & Pet Products, as more licensors seek to capitalize on strong industry growth present in both sectors worldwide. Fueled by increases in home ownership and new housing starts in developing countries as well as a stronger housing market in the U.S., sales of licensed Home Décor products grew by 8.2% during the current survey period. The Video Games/Software/Apps segment was again a solid performer, growing 8.1%. It is now the fifth largest segment, accounting for 6.9% of revenue.
Royalty revenue from sales of licensed merchandise and services rose 1.3% to US$14.1 billion. This modest increase is the byproduct of a 3.5% decrease in the weighted average industry royalty rate, from 8.5% to 8.2%.
The U.S./Canada remains the largest market for licensed merchandise and services, with revenue accounting for 57.9% of the global total, up slightly from 57.7% last year. The Southeast Asia/PAC region was the fastest growing of all areas worldwide, with 6.8% year-on-year growth; it now accounts for 3.4% of global licensing revenue
The full LIMA Annual Global Licensing Study, including regional and country-by-country breakdowns for major markets, will be made available later this summer. The survey is free of charge to LIMA members and priced at $975 for non-members.