Licensed Toy Market Report 2026

Licensed Toy Market Overview

• Licensed Toy market size has reached to $27.2 billion in 2025 • Expected to grow to $36.6 billion in 2030 at a compound annual growth rate (CAGR) of 6.2% • Growth Driver: Increasing Popularity Of Video Games Driving The Market Growth Due To Rising Consumer Engagement • Market Trend: Licensed Entertainment Collaborations Drive Product Innovation And Consumer Engagement In The Licensed Toy • North America was the largest region in 2025 and Asia-Pacific is the fastest growing region.

What Is Covered Under Licensed Toy Market?

A licensed toy is a toy product that uses legally protected characters, logos, or brands from entertainment, sports, or other intellectual property under a formal licensing agreement with the rights owner. It is designed and manufactured by a licensee who pays royalties to the licensor in exchange for the right to create and sell toys that feature the licensed property, such as movie characters or television franchises. It helps to leverage established brand popularity to enhance consumer appeal, brand engagement, and merchandise revenue. The main product types of licensed toys include action figures, dolls and plush toys, Arts And Crafts, games and puzzles, outdoor and sports toys, construction sets, educational toys, and other product types. Action figures refer to collectible or play figurines based on popular characters from movies, television, comics, or video games, designed to encourage imaginative play and storytelling. Licensed toys are used across different age groups, including below one year, age one to three years, age three to five years, age five to twelve years, and age twelve years and above. They are distributed through hypermarkets or supermarkets, online platforms, departmental stores, specialized stores, and other distribution channels. The end users of licensed toys include individuals, schools, and commercial recreational establishments.

What Is The Licensed Toy Market Growth Forecast?

The licensed toy market size is expected to see strong growth in the next few years. It will grow to $36.6 billion in 2030 at a compound annual growth rate (CAGR) of 6.2%. The growth in the forecast period can be attributed to increasing adoption of digital-first franchises, rising demand for interactive and Smart Toys, expansion of e-commerce toy sales, growing focus on sustainable licensed products, increasing cross-media licensing strategies. Major trends in the forecast period include increasing demand for franchise-based toy products, rising popularity of collectible licensed toys, growing integration of digital and physical play experiences, expansion of licensed educational toy offerings, enhanced focus on premium and limited-edition releases.

Global Licensed Toy Market Segmentation

1) By Product Type: Action Figures; Dolls And Plush Toys; Arts And Crafts; Games And Puzzles; Outdoor And Sports Toys; Construction Sets; Educational Toys; Other Product Types 2) By Age Group: Below 1 Yrs; Age 1-3; Age 3-5; Age 5-12; Age 12+ 3) By Distribution Channel: Hypermarket Or Supermarket; Online; Departmental Stores; Specialized Stores; Other Distribution Channels 4) By End-Use: Individual; Commercial Subsegments: 1) By Action Figures: Superhero Figures; Movie Character Figures; Cartoon Figures; Collectible Figures 2) By Dolls And Plush Toys: Fashion Dolls; Character Plush; Stuffed Animals; Interactive Dolls 3) By Arts And Crafts: Painting Kits; Modeling Clay; Craft Sets; Drawing Materials 4) By Games And Puzzles: Board Games; Card Games; Jigsaw Puzzles; Strategy Games 5) By Outdoor And Sports Toys: Sporting Equipment; Outdoor Playsets; Balls And Accessories; Activity Toys 6) By Construction Sets: Building Blocks; Modular Bricks; Engineering Kits; Mechanical Sets 7) By Educational Toys: Learning Games; Science, Technology, Engineering, And Mathematics (STEM) Kits; Skill Development Toys; Puzzle Learning 8) By Other Product Types: Vehicles; Role Play Toys; Musical Toys; Novelty Items

What Is The Driver Of The Licensed Toy Market?

The increasing popularity of video games is expected to propel the growth of the licensed toy market going forward. Video games are interactive digital entertainment experiences where players control characters or elements through electronic devices. The growing popularity of video games is primarily driven by increasing accessibility through mobile platforms and digital distribution, making gaming more convenient and affordable for a broader audience worldwide. Licensed toys reinforce video games by bringing well-known characters into the physical world, deepening player connection with the game universe. They also act as powerful promotional tools, increasing game visibility, engagement, and related revenue streams. For instance, in February 2024, according to the Entertainment Software Association, a US-based video game industry company, overall consumer spending on video games in the United States totaled $57.2 billion in 2023, which increased from $56.6 billion in 2022. Therefore, the increasing popularity of video games is driving the growth of the licensed toy industry.

Key Players In The Global Licensed Toy Market

Major companies operating in the licensed toy market are LEGO Group, BandAI Co. Ltd., Mattel Inc., Hasbro Inc., MGA Entertainment Inc., Spin Master Corp., Playmates Toys Ltd., Build-A-Bear Workshop Inc., Funko Inc., Jakks Pacific Inc., MEGA Brands Inc., Moose Toys Pty Ltd., Funrise Inc., Tomy Company Ltd., Schleich GmbH, BanBao Co. Ltd., Character Options Ltd., Paladone Ltd, Character World Ltd., National Entertainment Collectibles Association Inc., and Geobra Brandstätter GmbH & Co. KG.

Global Licensed Toy Market Trends and Insights

Major companies operating in the licensed toy market are focusing on strategic entertainment collaborations to develop themed, character-driven products that enhance brand appeal, expand fan engagement, and boost collectible demand. Strategic entertainment collaborations involve alliances between entertainment firms and partner organizations to jointly develop, market, or distribute content by leveraging complementary capabilities. For instance, in May 2025, JAKKS Pacific, Inc., a US-based toy company, partnered with SEGA of America, a US-based interactive entertainment company, and Warner Bros. Discovery Global Consumer Products, a US-based media and entertainment company, to launch Sonic the Hedgehog and DC’s Justice League, a crossover licensed toy line that blends Sonic’s high-energy universe with DC’s iconic superheroes. The collaboration delivers reimagined character designs that resonate with both children and long-time fans, while enabling the launch of highly collectible products such as action figures, vehicles, and plush toys under a unified licensed theme.

What Are Latest Mergers And Acquisitions In The Licensed Toy Market?

In July 2024, MGA Entertainment, Inc., a US-based creator and producer of licensed toys, games, and licensed consumer products, merged with Zapf Creation AG to build a stronger global licensed toy portfolio. The merger aims to expand MGA Entertainment’s licensed toy presence by integrating Zapf Creation’s premium nurturing doll portfolio, strengthening market penetration in Europe and North America, and enhancing MGA’s overall licensed product offerings. Zapf Creation AG is a Germany-based manufacturer of premium dolls and toy accessories.

Regional Insights

North America was the largest region in the licensed toy market in 2025. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in this market report are Asia-Pacific, South East Asia, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in this market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Taiwan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

What Defines the Licensed Toy Market?

The licensed toy market consists of sales of collectible figurines, die-cast vehicles, model kits, trading cards, outdoor play equipment, ride-on toys, arts and crafts kits, novelty toys, and interactive smart toys. Values in this market are ‘factory gate’ values, that is, the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors, and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

How is Market Value Defined and Measured?

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD unless otherwise specified). The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

What Key Data and Analysis Are Included in the Licensed Toy Market Report 2026?

The licensed toy market research report is one of a series of new reports from The Business Research Company that provides market statistics, including industry global market size, regional shares, competitors with the market share, detailed market segments, market trends and opportunities, and any further data you may need to thrive in the licensed toy industry. The market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future state of the industry.