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Licensed Sports Merchandise Products Market Size, Share, & Trends Analysis Report (2023 – 2030)
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Report Overview
The global licensed sports merchandise products market was valued at USD 60.3 billion in 2022 and is projected to expand at a CAGR of 5.2% from 2023 to 2030. The rising trend of sports merchandise among fans due to their growing interest in the game, and the rising popularity of sports leagues, teams, and players serve as a major factor driving the market. Furthermore, an increase in the number of partnerships between sports clubs and merchandise manufacturers is projected to propel the market growth.
Moreover, the rising inclination of fans towards buying replica jerseys, hats, and other apparel is expected to contribute to the market growth over the forecast period. The availability of apparel and merchandise through e-commerce platforms has made it easier for fans to purchase various products with just a few clicks. This has opened up lucrative opportunities for market players as well as retailers. For instance, in March 2022, Fanatics, Inc. and the National Basketball Association (NBA) launched a new online store to make it easier for fans to access officially licensed NBA merchandise.
In addition, the increasing number of tournaments and competitions is propelling the demand for licensed sports merchandise. For instance, in June 2021, the National Football League (NFL) announced that it would host the NFL International Series in Mexico in 2022. The series will feature a total of two games in Mexico City, which will be played by teams from the United States, Mexico, and other countries. This will likely attract an increased number of fans and create demand for licensed sports merchandise products.
Key players are introducing new merchandise lines to meet the growing demand. For instance, in January 2021, Nike, Inc. launched a new line of limited-edition apparel, which includes a range of NBA and NFL jerseys and caps. The line features bold and vibrant designs, which are intended to attract more people. The company also announced plans to launch new shoes and apparel for the 2021 NFL season.
Furthermore, the growing popularity of esports is projected to bolster the growth of the market. Esports refers to organized online video game competitions, which involve professional gamers. The rising popularity of esports tournaments is leading to increased demand for licensed merchandise, such as apparel, hats, and accessories. For instance, in April 2021, Riot Games, the developer of the popular video game League of Legends, launched a line of apparel featuring the characters from the game. The apparel line includes t-shirts, hoodies, and hats.
Product Insights
The apparel segment held the largest market share of 33.1% in 2021. The increasing demand for licensed sports apparel such as t-shirts, hoodies, jackets, hats, and sweatshirts drives the growth of the segment. According to a survey conducted by Statista in October 2020, around 32% of consumers prefer to purchase a licensed sports apparel product. The increasing demand for casual clothing among the youth is also driving the growth of the market. Moreover, the emergence of various online retail stores such as Amazon and Flipkart, and the growing trend of e-commerce are some of the factors driving the segment growth.
The accessories segment is expected to witness the fastest CAGR of 11.7% during the forecast period. Increasing demand for licensed sports accessories such as bags, wristbands, and keychains drives the growth of the segment. According to an article published by the International Licensing Industry Merchandisers’ Association (LIMA) in October 2019, licensed sports merchandise sales grew by approximately 6.2% in 2018. Furthermore, the increasing popularity of sports and rising fan base across the globe are some of the factors driving the growth of the market.
Distribution Channel Insights
The retail stores segment held the largest market share of over 30.3% in 2022. According to a study by GlobalData, the majority of sports merchandise sales were generated through physical retail stores in 2020. The convenience of availability of sports merchandise products in retail stores and the growing presence of discount stores are major factors driving the sales of sports merchandise products through retail stores. In addition, the presence of prominent players such as Walmart and Target in the US has increased the availability of licensed sports merchandise products through retail stores in the country.
The e-commerce segment is expected to expand at the highest CAGR of 16.7% over the forecast period. The growth of the segment can be attributed to the increasing preference of consumers for purchasing products online, owing to the convenience and wide range of options available. Companies are focusing on strengthening their presence in the online space to tap into the potential customer base. For instance, Fanatics, a leading player in the market, has a partnership with Walmart to sell licensed sports merchandise products through Walmart.com. The company is also expanding its presence in the e-commerce space by partnering with several e-commerce giants, including Amazon, eBay, and Walmart.
Type Insights
The licensed segment accounted for the largest revenue share of 68.5% in the year 2022. This can be attributed to the rising number of sports merchandise license agreements between sports teams, leagues and manufacturers. For instance, in March 2021, New Era Cap Co., Inc., a sportswear and headwear company, and the National Hockey League (NHL) agreed to a multi-year partnership to become the official headwear partner and licensee of the NHL. This agreement enabled New Era to design and manufacture NHL headwear and expand its product portfolio.
The non-licensed segment is anticipated to expand at the highest CAGR of 10.4% over the forecast period. This can be attributed to the increased focus of manufacturers on producing non-licensed sports merchandise products with innovative designs, graphics, and fabrications. Furthermore, the rising inclination of consumers towards purchasing non-licensed apparel to support their favorite teams or players is anticipated to drive the market during the forecast period.
Regional Insights
North America dominated the market and accounted for the largest revenue share of over 43.2% in 2022. The presence of major sports leagues such as the National Football League (NFL), Major League Baseball (MLB), and National Basketball Association (NBA), along with leading teams like the Los Angeles Lakers, New York Yankees, and Chicago Bulls, has resulted in a significant demand for licensed sports merchandise in the region. Moreover, the presence of a large number of affluent consumers in the region is expected to boost the market growth.
Asia Pacific is expected to witness the fastest growth in the coming years. Growing awareness among consumers in countries such as India, China, and Japan, coupled with the increased consumer spending power is driving the growth of the market in the region. Furthermore, increasing popularity of international sports such as football and cricket has also resulted in a high demand for licensed merchandise in the region. For instance, in October 2021, the United States-based company Fanatics announced its expansion plans in India, targeting the growing fan base of sports in the country.
Financial Projections
In this part of the licensed sports merchandise business plan we will provide a detailed breakdown of all income and expense categories of the business. These forecasts include cash flow projections and capital requirements for your licensed sports merchandise business. Generally, revenue projections are drafted for a 5-year period.
Revenue Assumptions
The main source of revenues for a licensed sports merchandise business comes from the sale of products, such as apparel, hats, accessories, collectibles, and equipment. Here you will find a list with a description of each of these items and other possible sources of profit such as bulk orders, partnerships with retailers, and online sales.
Projecting Expenses
In this section, all the regular expenses related to keeping the licensed sports merchandise business running will be described. The list of operating expenses includes licensing fees, wages, inventory costs, shipping and handling fees, taxes, advertising, and others.
Key companies & market share insights
Some of the key companies operating in the licensed sports merchandise market are increasingly focusing on product launches and expansion of the distribution channel to gain prominent visibility among consumers. Some of the initiatives are:
– In June 2022, Nike Inc. launched the Nike+ branded sports merchandise line which includes hats, t-shirts, and other apparel.
– In August 2022, Adidas AG launched the adidas Originals line of sports merchandise featuring licensed designs from NBA, NHL, and other professional sports leagues.
– In October 2022, Under Armour launched the UA Threadborne line of sports merchandise featuring licensed designs from NFL, MLB, and other professional sports leagues.
Some of the prominent players in the licensed sports merchandise market include:
– Nike, Inc.
– Adidas AG
– Under Armour
– Fanatics, Inc.
– VF Corporation
– New Era Cap Co.
– Reebok International Limited
– Majestic Athletic
– Outerstuff
– G-III Apparel Group, Ltd.
Global Licensed Sports Merchandise Market Segmentation
This report forecasts growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2017 to 2030. For this study, Grand View Research has segmented the global licensed sports merchandise products market based on product, distribution channel, region, and type:
1. Product Outlook (Revenue, USD Million, 2017 – 2030)
– Apparel
– Footwear
– Accessories
– Toys & Games
– Collectibles
– Others
2. Distribution Channel Outlook (Revenue, USD Million, 2017 – 2030)
– Specialty Stores
– Online
– Supermarkets & Hypermarkets
– Others
3. Regional Outlook (Revenue, USD Million, 2017 – 2030)
– North America
– Europe
– Asia Pacific
– Central & South America
– Middle East & Africa
4. Type Outlook (Revenue, USD Million, 2017 – 2030)
– Licensed
– Unlicensed
Frequently Asked Questions
[Q]: What is the Market Size of the Licensed Sports Merchandise Products Market?
[A]: The global Licensed Sports Merchandise Products market size was estimated at USD 24.5 billion in 2020 and is expected to reach USD 32.2 billion by 2027, exhibiting a CAGR of 4.1% during the forecast period.
[Q]: What are the Factors Driving the Market?
[A]: Factors such as the growth of e-commerce as a preferred mode of shopping for sports merchandise, rising disposable income and the increasing popularity of sports across the world are driving the Licensed Sports Merchandise Products market.
[Q]: What is the Impact of Covid-19 on the Market?
[A]: The COVID-19 pandemic has adversely affected the Licensed Sports Merchandise Products market due to the temporary closure of sports stadiums and suspension of several sports events.
[Q]: What are the Key Players in the Market?
[A]: Major players operating in the Licensed Sports Merchandise Products market include adidas AG, Nike Inc., Under Armour, Inc., Fanatics, Inc., VF Corporation, and Puma SE.
[Q]: What are the Opportunities for New Market Entrants?
[A]: New market entrants can capitalize on the increasing demand for licensed sports merchandise products in emerging nations and the growing popularity of e-commerce as a preferred mode of shopping for sports merchandise. Additionally, they can also focus on product innovation to increase their market share.
Research Methodology
Impact Analytix employs a comprehensive and iterative research methodology focused on minimizing deviance in order to provide the most accurate estimates and forecasts possible. The company utilizes a combination of bottom-up and top-down approaches for segmenting and estimating quantitative aspects of the market. In Addition, a recurring theme prevalent across all our research reports is data triangulation which looks market from three different perspectives. Critical elements of the methodology employed for all our studies include:
Preliminary data mining
Raw market data is obtained and collated on a broad front. Data is continuously filtered to ensure that only validated and authenticated sources are considered. In addition, data is also mined from a host of reports in our repository, as well as a number of reputed paid databases. For a comprehensive understanding of the market, it is essential to understand the complete value chain and in order to facilitate this; we collect data from raw material suppliers, distributors as well as buyers.
Technical issues and trends are obtained from surveys, technical symposia, and trade journals. Technical data is also gathered from an intellectual property perspective, focusing on white space and freedom of movement. Industry dynamics with respect to drivers, restraints, and pricing trends are also gathered. As a result, the material developed contains a wide range of original data that is then further cross-validated and authenticated with published sources.
Statistical model
Our market estimates and forecasts are derived through simulation models. A unique model is created and customized for each study. Gathered information for market dynamics, technology landscape, application development, and pricing trends are fed into the model and analyzed simultaneously. These factors are studied on a comparative basis, and their impact over the forecast period is quantified with the help of correlation, regression, and time series analysis. Market forecasting is performed via a combination of economic tools, technological analysis, industry experience, and domain expertise.
Econometric models are generally used for short-term forecasting, while technological market models are used for long-term forecasting. These are based on an amalgamation of the technology landscape, regulatory frameworks, economic outlook, and business principles. A bottom-up approach to market estimation is preferred, with key regional markets analyzed as separate entities and integration of data to obtain global estimates. This is critical for a deep understanding of the industry as well as ensuring minimal errors. Some of the parameters considered for forecasting include:
Market drivers and restraints, along with their current and expected impact
Raw material scenario and supply v/s price trends
Regulatory scenario and expected developments
Current capacity and expected capacity additions up to 2030
We assign weights to these parameters and quantify their market impact using weighted average analysis, to derive an expected market growth rate.
Primary validation
This is the final step in estimating and forecasting our reports. Exhaustive primary interviews are conducted, face to face as well as over the phone to validate our findings and assumptions used to obtain them. Interviewees are approached from leading companies across the value chain including suppliers, technology providers, domain experts, and buyers so as to ensure a holistic and unbiased picture of the market. These interviews are conducted across the globe, with language barriers overcome with the aid of local staff and interpreters. Primary interviews not only help in data validation but also provide critical insights into the market, current business scenario, and future expectations and enhance the quality of our reports. All our estimates and forecast are verified through exhaustive primary research with Key Industry Participants (KIPs) which typically include:
Market-leading companies
Raw material suppliers
Product distributors
Buyers
The key objectives of primary research are as follows:
To validate our data in terms of accuracy and acceptability
To gain an insight into the current market and future expectations
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