In a rapidly evolving global landscape, anticipating the future is essential for success in the licensing market. BrandTrends Group unveils the 8 key trends that will shape the industry in 2025, providing vital insights for keeping your brand ahead of the curve.
This report is based on our team’s extensive industry expertise, deep understanding of children’s and family behaviors, and insights gathered from a comprehensive database of consumer research. Drawing from data across more than 40 countries, which is continuously updated, we offer a rich, evolving view of consumer behaviors and attitudes. By combining expert analysis with this vast repository of research, BrandTrends has identified the most important trends for navigating the future of licensing.
1. Digital Transformation, Metaverse, and Technological Innovation
The rise of digital platforms, the metaverse, and advancements in artificial intelligence are profoundly changing the licensing landscape. Brands are exploring new opportunities in virtual goods, NFTs, virtual reality, and augmented reality, adopting emerging technologies to create immersive consumer experiences.
2. Sustainability and Ethical Consumption
Consumers are increasingly concerned about environmental and ethical issues, and these values are now influencing licensing agreements. The growing demand for eco-friendly products and sustainable practices is urging brands to adopt more responsible production methods and align with the expectations of conscientious consumers.
3. Personalization and Customized Experiences
Consumers are seeking personalized products and services that reflect their individual identities. Brands are leveraging licensing to offer these unique experiences, which in turn requires more flexible licensing agreements that cater to personalization.
4. Retailers Developing Experiential Actions
To counter the growth of e-commerce and the impact of social media, retailers are implementing experiential initiatives that use licensing to create immersive and engaging in-store experiences. For example, Toys”R”Us has embraced experiential retail through in-store events, live demonstrations, and by blending physical and digital experiences. These experiential actions not only drive traffic to physical stores but also enhance consumer loyalty, creating long-lasting brand relationships.
5. E-commerce and Direct-to-Consumer (D2C) Models
The shift to online commerce and direct-to-consumer models is changing the dynamics of the licensing market. Brands are utilizing licenses to strengthen their online presence, interact directly with consumers, and gain deeper insights into their preferences, which allows them to create more targeted products and services.
6. Influence of Social Media and Influencer Marketing
Influencers generate strong purchase intent and enhance brand experience. Collaborations between brands and influencers are multiplying, making influencers key strategic partners for reaching new audiences. The combination of licensing and influencer marketing not only drives engagement but also helps brands access niche markets effectively.
7. Growth of the Video Game and Esports Market
The video game and esports market continues to grow rapidly, with increased demand for character licenses, brands, and content in games and esports competitions. Video games like Roblox and Mario Bros have become more than just games; they are now powerful entertainment platforms where licensing partnerships create unique, immersive brand experiences.
8. Decline of Traditional Superheroes and the Rise of Anime/Manga
As traditional superheroes, notably those from Marvel, experience a decrease in popularity, anime and manga are booming. Brands are increasingly tapping into this cultural shift, exploring anime-related merchandise and media to stay relevant. Recent data from our Brand IP tracker (BrandTrends Entertainment) reveals a surge of over 30% in global interest in anime merchandise over the past two years, particularly among younger demographics, while traditional superhero franchises have seen a slight decline.
Conclusion: Navigating Challenges and Opportunities in 2025
The outlined trends are highly significant for executives in the kids’ licensing industry. Some trends, such as sustainability, inclusivity, and ethical consumption, arise from broader societal shifts, while others, like digital transformation and virtual reality, are driven by technological advancements. Additionally, trends like e-commerce, D2C models, and personalization reflect the evolving preferences of consumers, indicating a need for brands to remain flexible and responsive.
Brands like Toys”R”Us are leading the way with experiential retail initiatives that successfully connect with younger audiences, integrating in-store events and live demonstrations to create memorable experiences. However, there are significant challenges ahead for 2025. Navigating the rapidly changing preferences of younger audiences—who are increasingly influenced by digital experiences, personalization, and ethical considerations—will require agility and innovation from licensors and brands. Staying relevant as anime and manga grow in popularity, while traditional superheroes lose their appeal, demands a forward-thinking approach. Moreover, embracing sustainable practices and leveraging new technological platforms, such as the metaverse, NFTs, and virtual goods, will be essential to staying at the forefront of the licensing industry.
As the landscape becomes more dynamic and competitive, staying attuned to these trends is critical for brands seeking to remain relevant and successful. The convergence of technological advancements, shifting consumer preferences, and emerging market forces is reshaping how businesses approach licensing strategies.
By focusing on digital transformation, sustainability, personalization, and new cultural phenomena like anime and manga, companies can better navigate the complexities of the market. Embracing these changes enables brands to create more engaging and meaningful experiences for consumers while capitalizing on opportunities for growth and innovation. Maintaining a sharp focus on these developments will be crucial for any brand aiming to thrive in the rapidly evolving world of global licensing.
