Growing by 2.4%, licensed toy sales in Europe (EU5: France, Germany, Italy, Spain and the UK) bucked an industry decline of 3.1% during the first seven months of this year.

Licenses now represent 28.8% of total toy sales in EU5 with licensing gaining share in every country. Top gaining licenses in Europe this year are UEFA National – European Cup, Lilo & Stitch and Mercedes Benz.

Sports licenses, with 2.2% of overall toy sales in Europe, are the main growth driver (+34%) this year. Toys derived from animé brands represent an even larger share, with 5.8% of total toy sales and also contributing to growth, up 8% year-on-year.

“The UK really embraces both characters and licenses,” said Melissa Symonds, UK Toys Director for Circana.

“Football, of course, is particularly strong here and with England’s men making it through to the final of the Euros, sales of related merchandise did really well despite the team falling short against Spain. In a year with fewer blockbusters, the toy industry was able to successfully pivot from big screen names to small screen legends and sports heroes.”

Frédérique Tutt, Global Industry Advisor for Toys at Circana, added: “Even if the box office drives the bulk of consumer product sales, licensing is more than just what’s on the big screen for the toy industry; it’s about collaborations with consumer brands, sports teams and motor vehicles, video games and music content, as well as shows from streaming platforms. It’s about building new franchises for new generations, but also nurturing fandom and nostalgia, particularly among older toy buyers.

“Most of the major franchises are fuelling this fandom among kids and adults who enjoy buying merchandise of their favourite characters. It’s a lucrative market with a healthy pipeline.”

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The data runs from the start of the year to August 2023 and the figure is a 5% jump up from 22% in 2020.

The top ten character-driven toys by sales value in the UK market this year so far are:

1. LEGO Speed Champions Aston Martin 007 DB5 (LEGO)
2. LEGO Speed Champions Lamborghini Coutach (LEGO)
3. Premier League 2022/23 Adrenalyn XL (Panini)
4. 5 Surprise Mini Brands Disney Store Edition (Zuru)
5. Paw Patrol Vehicle and Pup (Spin Master)
6. Premier League 2023 Official Sticker Collection Multipack (Panini)
7. LEGO Star Wars 501st Clone Troopers Battle Pack (LEGO)
8. LEGO Speed Champios 2 Fast 2 Furious Nissan Skyline GT R R34 (LEGO)
9. LEGO Minifigures Disney 100 (LEGO)
10. LEGO Disney Up House (LEGO)

“The licensing of movies, video games and sporting events are all fueling growth of toy sales,” said Melissa Symonds, UK Toys Director for Circana.

“The licensing of toys is keeping the sector in great shape as we move into the all-important Q4 holiday period. With the wealth of content available and more coming down the pipe, it will be fascinating to see just how high the share of licensed sales in the toy market can go in 2024 – though I do expect the 148 days of the Writers Guild of America strike to have a measured impact on the flow of new toys.”

Elsewhere, across the EU7 Circana has tracked €7.9BN worth of toy sales this year to the end of August 2023 – a decline of 3.6% in value terms compared to the same period in 2022.

“Like many discretionary categories, the toy market is fighting to maintain its share of consumers’ wallets,” added Symonds.

“A decline in disposable income, drops in birth rates and unpredictable weather, which always has a direct impact on sales of outdoor toys, have all contributed to the decline in the toy market value sales. But one way manufacturers are reaching consumers’ hearts is to capitalise on the power of fandom. As a result, the licensing market is booming.”

Due to unpredictable weather, outdoor and sport toys have declined by 16.5% YTD and 15.5% for the three summer months (June to August) where they represent no less than 16% of European toy sales.

Three super categories are increasing sales: Building Sets (+0.3%), Games and Puzzles (+7.3%) and Plush (+9.4%). The top five gaining classes YTD includes strategic trading card games, traditional plush, card games, non-strategic trading cars and stickers, action figure collectibles.

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