The US branch of the market research firm, the NPD Group has released data from its newly conceptualised US Kids Licence Tracker, showing that licensed products designed for kids 14 and under made up a quarter, or US$17 billion, of total unit sales in the fourth quarter of 2017.
The service tracks spending on licensed products across 17 industries and found that Paw Patrol topped the list across all ages and industries as the most popular licence. Disney's Frozen and Mickey Mouse came second and third respectively, with NFL and Star Wars rounding out the top five most popular licenses.
Kids aged three to five represented the largest age group for licensed purchases, making up about 30 per cent of sales. The toys, games and puzzles; arts and crafts; and, health and beauty categories scored highest with the three to five year olds – with Paw Patrol proving most popular with this age group.
Six to eight year olds made up the second highest category with a 23 per cent share of the kids' licensing market. The categories that evoked the most sales for this age group shifted to fashion accessories; apps/in-app purchases; and, school supplies, with Star Wars being the most popular licence among the segment.
“There is a lot of fluidity in the kids’ licensing market, and understanding the differences among age groups is critical to finding opportunities,” Juli Lennett, senior vice president and toys industry advisor, at the NPD Group (US) said. “Kids are utilising more platforms than ever before to interact with their favourite licenses. Finding synergies across industries and extending the life of a licence where it makes sense are important avenues for licensors and retailers to pursue.”
In Australia, NPD reports that licensed toys make up 28 per cent of all toy sales in the 12 months to April 2018.
To read more about the NPD Licence tracker, click here.
