Toy licensing key to increasing global sales through 2021

The worldwide toys and games industry is slated to hit a CAGR of 4.94 percent in the next four years.

The global toys and games market is expected to post a CAGR of 4.94 percent from 2017 to 2021, according to a press release from Research and Markets.

Licensing continues to be the key driver of sales, as there is an increasing demand for branded toys and games, which is equally fuelled by their popularity in mediums such as TV, Internet and films. In the US alone, it is predicted that film-related toys will take up 20 percent of the total revenue this 2017, considering the amount of movies slated for theatrical release this year. For instance, the debut of DC's Wonder Woman has led Toys R Us to offer exclusive action figures, and many stores are following suit, littering aisles with the latest blockbuster.

In terms of region, the US is the largest licensed toy market worldwide. Asia Pacific, meanwhile, is home to seven out of 10 licensed traditional toy suppliers.

Licensed and branded toys and games, of course, are more expensive than those that are not. However, price is not a problem for a growing number of middle-class consumers with high purchasing power and disposable incomes. Rapid urbanization is also affecting buying behavior and lifestyle, particularly in emerging countries, including China, India and Russia.

Hasbro, Mattel, Ravensburger, Lego and Tomy are among the top vendors of licensed toys and games. Other suppliers are Funko, Funtastic, Jakks Pacific, Lansay, LeapFrog, MGA, Playmates Toys, ToyQuest and Vivid Imaginations.