NPD Insight
Toy licensing
in Europe
This month, Rory examines the growth of licensing in the European toy market and the factors that are influencing this boom.
T
he toy market across the European G5 is currently +6% using latest NPD EPOS data for 2021. That is an impressive performance considering the challenges still facing the industry across Europe. However, one area of the toy market is doing even better in 2021 and that is licensing, with consistent growth across all European countries. Let’s take a closer look at what exactly is driving this growth with a breakdown of the performance in each country to see what the similarities are, as well as the differences.
around a quarter of all toy sales, but the strongest growth is coming from sales linked to video games, growing at +95% against the same period in 2020. France represents around 40% of all toy sales linked to video games and is also the top growth country, up +122% vs. last year. Pokémon is the key licence here in the brand’s 25th anniversary year, with growth in the core Strategic Trading Cards as well as in Action Figure Collectibles, Plush and Building Sets. Minecraft and Super Mario Brothers are two other video game licences also adding value this year, with both being driven by sales from Lego in 2021.
Rory Partis
Director UK Toys & EuroToys NPD is Paw Patrol which has seen +22% growth in Europe, across all five countries. This is a property that has also moved into cinema with the Paw Patrol movie opening across Europe in August this year. The trend here also emphasises the impact that movies can have on the overall success of the brand: August was a particularly strong month for Paw Patrol, with +53% growth in France and +21% growth in Germany versus August 2020.
As already mentioned, the growth for the G5 this year is +6% in value but for the same five countries licensed growth is +16%, growing nearly three times as fast as the In Europe, Dress overall toy market. Up is an area where Licences make up licensing is key. nearly 24% of the The UK costumes overall toy market market is the most in Europe this year Licences of EU5 Toys heavily licensed, Licences outperform overall% market in all countries in 2021 -the highest share 23.8% where 81% of the total for four years. The 22.8% costumes market are five countries show based on licensed double digit growth 21.5% Licences % of21.7% EU5 Toys properties. This is 23.8% for licences across 22.8% another area where the board, with the 21.7% 21.5% the strength of move highest growth in based properties is Italy at +28% value critical; across the growth vs. the same G5 combined, the period in 2020. This top three licences means Italy has are all movie based: 2018 2019 2020 2021 the highest share 2018 2019 2020 2021 Avengers, Disney for licences in the Frozen and SpiderG5 with nearly 27% Source: The NPD Group | Retail Tracking Service Projected | EU5 | YTD Jul-21 Man. With a new of the market, five 1 The NPD Group, Inc. | Proprietary and confidential Source: The NPD Group | Retail Tracking Service Projected | EU5 | YTD Jul-21 Spider-Man movie coming in December this year, Although the influence of video games has added percentage points ahead of France which has the we should see sales for these costumes grow more value in 2021 than any other category, it still lowest share at 22%. The UK has second 1 across Thethe NPD Group,highest Inc. | Proprietary and confidential represents under 5% of the total toy market. TV/Digital Europe in Q4. share of licences in the G5 with just over 26%, and is still the largest influence, being 15% of the European although the overall toy market is flat versus last year, Licensing as a whole appears to be in a very market and adding €70m so far in 2021. All five licensed sales are up +10%. healthy state across Europe. There is growth across countries have seen value increases for TV/Digital, all countries and across different types of licence, It’s clear that licensed toy sales are thriving in with Germany and the UK leading the way in terms of from video games through to TV and movies. A full 2021, but what is driving this performance? Looking growth. These two countries make up around 60% of calendar of new movie releases should result in see at the European toy market in 2021 we can see sales all TV/Digital toy sales so far in 2021 in the G5. One of another strong year for movie-based licences in 2022. linked to TV/Digital are growing +10% and movies are the top performing properties for TV/Digital this year growing at a more modest +1%. These areas represent
Licences at their Highest Share in 4 Years Licences outperform overall market in all countries in 2021
Licences at their Highest Share in 4 Years
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