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LIMA Annual Global Licensing Industry Survey Shows Increase in Sales of Licensed Products Last Year

May27LIMA(2)Global sales of licensed products and services continued to grow last year, rising 4.4 percent to $262.9 billion in the U.S., according to this year’s International Licensing Industry Merchandisers’ Association’s (LIMA) Annual Global Licensing Industry Survey.

Entertainment/ Character licensing remains the largest industry category, accounting for $118.3 billion in the U.S., or 45 percent of the total global licensing market. Corporate/Brand Trademarks was the next biggest property type, generating $54.6 billion in retail receipts in the U.S. for 20.8 percent of total revenues, followed by Fashion, with $31.1 billion in the U.S. (11.8 percent of the total), and Sports at $25.3 billion in the U.S. (9.6 percent).

The survey was conducted for the third straight year for LIMA by Brandar Consulting LLC.

Among product categories, Apparel led the way with 14.9 percent of total global licensed retail sales, followed by Toys at 13.3 percent of the total, and Fashion Accessories at 11.3 percent. The fastest growing categories were Infant and Pet Products.

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 percent. The Video Games/Software/Apps segment was a solid performer, growing 8.1 percent. It is now the fifth largest segment, accounting for 6.9 perent of revenue.

Royalty revenue from sales of licensed merchandise and services rose 1.3 percent to $14.1 billion in the U.S. This modest increase is the byproduct of a 3.5 percent decrease in the weighted average industry royalty rate, from 8.5 percent to 8.2 percent.

The U.S. and Canada remain the largest market for licensed merchandise and services, with revenue accounting for 57.9 percent of the global total, up slightly from 57.7 percent last year. The Southeast Asia/PAC region was the fastest growing of all areas worldwide, with 6.8 percent year-on-year growth. It now accounts for 3.4 percent of global licensing revenue.

Further information from the LIMA Annual Global Licensing Survey will be published on LIMA’s website via the Inside Licensing news feed. The complete report, including regional and country-by-country breakdowns for major markets, will be made available to LIMA members later this summer. Non-members can purchase the survey at licensing.org.

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