Licensed franchises now account for a third of global toy sales. From Pokémon to Jurassic Park, toy companies are increasingly selling nostalgia alongside play.
It often feels like every new movie or television show is a remake, reboot, or sequel. Now that same shift toward established intellectual property is reshaping the toy industry. According to Circana, the share of global toy sales tied to licensed IP has grown from 25% to 37% since 2018. That’s an increase of +12 percentage points.
Perhaps no company embodies this trend more than Lego. Just this month, it announced new Pokémon-themed “smart” sets. The toy maker has spent years expanding beyond its original themes, partnering with franchises ranging from Star Wars and Harry Potter to Minecraft and Fortnite. Circana estimates that more than 50% of Lego’s $13B annual revenue comes from licensed IP.
But Lego is hardly alone. Funko’s Pop! vinyl figurines depict everyone from Happy Gilmore to Freddie Mercury. Hasbro sells Monopoly boards based on franchises like X-Men and Dune. And Magic: The Gathering includes crossover sets featuring Teenage Mutant Ninja Turtles, Monty Python, and dozens of other well-known brands.
On the surface, the appeal of licensed IP is obvious: Established franchises come with loyal fan bases. And as moated franchises scale ever larger with fans who never outgrow their pop-culture obsessions, entire industries of brand merch—from books and toys to clothing, snacks, and theme parks—grow along with them.
But the toy industry is also capitalizing on the nostalgia clinging to many of these brands. While some products are tied to newer hits like Bluey, many draw on franchises that are more than 30 years old, like Jurassic Park and The X-Files. These toys allow parents to introduce their children to the characters they grew up with, while also appealing to adult collectors. (See “Board Games Make a Comeback” and “Lego: New Stress Reliever for Adults.”)
Remember, toys are no longer just for children. As Millennials and Gen Xers continue to spend on the franchises of their youth, toy companies are finding that nostalgia can be just as profitable as attracting the next generation of fans.