Licensed Sports Merchandise Market

Market Overview

The global licensed sports merchandise market size was valued at USD 34.13 billion in 2023. It is estimated to reach USD 51.82 billion by 2032, growing at a CAGR of 4.75% during the forecast period (2024–2032).

In recent years, there has been a surge in the number of individuals involved in sports, which has been a primary driver stimulating global market growth. Moreover, the burgeoning e-commerce platforms and digitalization in the licensed sports merchandise sector present significant opportunities for market players to expand their consumer base and reach untapped markets.

Highlights

• Offline dominates the distribution channels segment
• North America held the largest market share

Licensed sports merchandise refers to products featuring the branding, logos, and imagery of professional sports teams, leagues, or athletes, produced with official permission and typically sold through authorized retailers. This merchandise encompasses a wide range of items, including clothing (such as jerseys, hats, and t-shirts), accessories (like bags and phone cases), home decor (such as posters and bedding), and collectibles (such as trading cards and figurines). 

Fans purchase licensed sports merchandise to display their allegiance to a particular team or player, commemorate memorable moments in sports history, or express their passion for the sport. By obtaining a license, manufacturers ensure that their products meet quality standards and adhere to branding guidelines set by the sports organizations while also providing a revenue stream for the teams and leagues through royalties or fees. 

Market Dynamics

Global Licensed Sports Merchandise Market Drivers

Growing Sports Fan Base

The expanding global fan base for various sports leagues is a significant driver propelling the growth of the licensed sports merchandise market. With the increasing accessibility of televised games, live streaming platforms, and social media, sports fandom transcends geographical boundaries, reaching audiences worldwide. According to Statista, the number of MLB TV attendees reached a total of 64.49 million throughout the season. This growing fan base translates into a vast potential consumer market for licensed merchandise as fans seek tangible ways to express their allegiance to their favorite teams and athletes.

Moreover, the proliferation of sports-themed events, fan conventions, and interactive experiences further fuels consumer enthusiasm and drives demand for licensed products. By capitalizing on the genuine passion of sports enthusiasts, manufacturers and licensors can leverage this driver to enhance brand visibility, increase sales, and cultivate long-term customer loyalty in the market.

Global Licensed Sports Merchandise Market Restraint

Counterfeit Concerns 

One of the primary challenges facing the global market is the proliferation of counterfeit products, which undermines the revenue of legitimate manufacturers and licensors and poses significant risks to consumers and the industry. Counterfeit merchandise often closely mimics the appearance of authentic products, making it challenging for consumers to discern the difference, especially when purchasing online or from unauthorized sellers.

Moreover, the production and sale of counterfeit sports merchandise contribute to various illicit activities, including organized crime and funding illegal operations. Beyond economic implications, counterfeit sports merchandise poses serious safety risks to consumers, as these products may not undergo the same quality control standards and safety regulations as genuine merchandise. Inferior materials, substandard manufacturing processes, and lack of product testing increase the likelihood of product defects, potentially causing harm or injury to unsuspecting buyers. These factors are estimated to hinder the market expansion.

Global Licensed Sports Merchandise Market Opportunities

E-commerce Expansion

The rapid growth of e-commerce platforms presents a significant opportunity for the licensed sports merchandise market. With the convenience of online shopping and the global reach of digital marketplaces, licensed merchandise can reach a broader audience beyond traditional retail channels. Moreover, the key market players are taking several initiatives to move towards online channels and integrating e-commerce channels to sell their products.

For instance, in August 2023, DAZN Group, a prominent worldwide sports entertainment and live-streaming company, and Fanatics, a global digital sports platform and a leader in licensed sports merchandise, declared a long-term strategic partnership. The collaboration between these two prominent organizations will guarantee a superior and seamless e-commerce experience for DAZN customers. From the third quarter of 2023, Fanatics allowed DAZN's rapidly expanding customer base to purchase a wide variety of products, like licensed team merchandise and sports apparel, directly through the DAZN app, no matter where they are located. Consequently, all these factors create opportunities for market expansion.

Regional Analysis

Based on region, the global licensed sports merchandise market is bifurcated into North America, Europe, Asia-Pacific, Latin America, and the Middle East and Africa.

North America Dominates the Global Market

North America is the most significant global licensed sports merchandise market shareholder and is expected to expand substantially during the forecast period. North America stands as the dominant force in the global licensed sports merchandise market, propelled by the fervent passion for sports ingrained in the region's cultural fabric. The United States and Canada boast some of the most iconic sports leagues in the world, including the NFL, NBA, MLB, NHL, and MLS, each commanding devoted fan bases and driving substantial merchandise sales. In the United States, the NFL reigns supreme, with its annual Super Bowl extravaganza captivating millions of viewers and generating unparalleled demand for licensed merchandise. The NBA holds a prominent position as well, with superstar athletes like LeBron James and Kevin Durant fueling fan frenzy and driving sales of basketball-related merchandise.

Moreover, the regional market players are involved in strategic endeavors like collaborations, mergers and acquisitions, expansions, etc. For instance, in February 2024 '47, a privately owned premium sports lifestyle brand announced a new licensing partnership with NASCAR, the leading form of motorsports in the United States. The two renowned entities have formed a long-term collaboration to provide exceptional products, including some of the most well-known intellectual property in the field of motorsports. NASCAR is now part of a prestigious group that includes MLB, NBA, NFL, NHL, and major schools and universities. This group is known for having an impressive collection of licensed sports apparel and headwear. Consequently, all these factors are estimated to drive the regional market growth.

The Asia-Pacific region represents a burgeoning frontier in the licensed sports merchandise market, propelled by a confluence of factors, including rising disposable incomes, rapid urbanization, and growing enthusiasm for sports among consumers. In Asia-Pacific, the government's initiatives to promote sports participation and investment in sports infrastructure have spurred interest in sports leagues such as the Chinese Basketball Association (CBA) and Indian Premier League (IPL), fueling demand for licensed merchandise featuring local and international teams and athletes.

Furthermore, the international players in this market are expanding their footprints in this region to tap the ample opportunities it offers. For instance, in July 2023, Fanatics, a digital sports platform, established its first online marketplace in Japan through the introduction of a store on Rakuten Ichiba. Japanese consumers have the opportunity to purchase licensed sports merchandise from Fanatics through Rakuten Ichiba, a platform operated by the financial technology corporation Rakuten. The store provides a selection of over 10,000 fully licensed products from Fanatics' partner lineup. Such factors are predicted to propel the regional market growth.

Segmental Analysis

The global licensed sports merchandise market is segmented by product, sports category, and distribution channel.

Based on product, the global licensed sports merchandise market is segmented into sports apparel, sports footwear, sports accessories, toys and games, and others. 

The sports apparel segment includes various clothing options adorned with team logos, player names, and iconic insignia. Apparel, which ranges from t-shirts and jerseys to hoodies and caps, is a material way for fans to show off their love for their preferred sports teams and players. Jerseys, in particular, hold a special significance within the apparel segment, symbolizing a direct connection to the team and its players. Authentic team jerseys featuring official designs and player numbers are highly coveted by fans seeking to emulate their sporting heroes on and off the field.

Additionally, the apparel segment extends beyond game-day attire, encompassing lifestyle apparel and fashion-forward collections that seamlessly blend sports fandom with streetwear aesthetics. Innovations in apparel design, fabric technology, and customization options have fueled consumer interest in licensed sports merchandise, catering to diverse tastes and preferences.

Based on the sports category, the global licensed sports merchandise market is bifurcated into football, basketball, cricket, and others. 

Football, often called soccer in North America, is the cornerstone of the licensed sports merchandise market, boasting a global fan base that transcends geographical boundaries and cultural divides. The popularity of football clubs like FC Barcelona, Manchester United, and Real Madrid extends far beyond the pitch's confines, with supporters displaying unwavering loyalty and passion for their favorite teams. The FIFA World Cup and UEFA Champions League serve as pinnacle events that drive fervent demand for licensed merchandise, with fans eagerly seeking to showcase their allegiance and pride during these prestigious tournaments.

Furthermore, the football segment of the global market is characterized by intense competition among clubs, as well as lucrative sponsorship deals and licensing agreements with leading sportswear brands. With the continued globalization of football and the rise of digital platforms for fan engagement, the football segment presents immense opportunities for market players to capitalize on the enduring appeal of the beautiful game and cultivate meaningful connections with supporters worldwide.

Based on the distribution channel, the global licensed sports merchandise market is divided into online and offline. 

The offline segment dominates the global market. Traditional brick-and-mortar retail outlets remain crucial to the licensed sports merchandise market, offering consumers tangible shopping experiences and personalized assistance. Specialty sports stores, department stores, and licensed merchandise shops at stadiums and arenas serve as physical touchpoints where fans can immerse themselves in the excitement of their favorite sports teams and explore a wide selection of licensed products.

Offline retail channels allow fans to interact with merchandise firsthand, try on apparel, and examine collectibles up close, fostering a sense of connection and engagement with their beloved teams and players. Staff members with a wealth of knowledge frequently offer professional advice, assisting customers in making well-informed decisions and giving them insider information on the newest products and trends in the sports apparel industry. In the licensed sports apparel industry, offline distribution channels are still essential for boosting sales and building brand loyalty despite the growth of e-commerce.

Recent Developments

• August 2023 - Fanatics announced that they are further expanding its market presence by forming a partnership with HSN. The digital sports platform and licensed sports goods company are partnering with the shopping network to provide customers with a diverse selection of products from various prominent sports leagues.
• August 2023 - Academy Sports + Outdoors, a worldwide digital sports platform and prominent supplier of authorized sports merchandise, announced an extended collaboration aimed at improving the range of legally licensed products accessible to Academy clients, both in physical stores and on the internet. Through this arrangement, Academy customers will gain access to a broader range of fan shop products that were previously unavailable at Academy.