Character merchandise thrives on the powerful cultural force of fandom. Fans don't just consume content – they actively engage with it, which influences their purchasing decisions. These products are popular…
US
Retail
simple
US Character Merchandising Market Report 2025
"Consumers will continue to gravitate toward character merchandise as a way to express their passion areas and individuality. Brands can look to appeal to consumers across demographics by leveraging characters from various interest areas."
US Character Merchandising Industry – Trends and Insights
Character merchandise thrives on the powerful cultural force of fandom. Fans don’t just consume content – they actively engage with it, which influences their purchasing decisions.
Character merchandise products are popular as gifts for both children and adults. For nearly half of consumers, they’re also a way to indulge in self-care, highlighting personal enjoyment as a key motivator.
There’s also untapped potential in the luxury market, where character merchandise can be elevated to premium status, attracting a broader audience. Limited-edition and exclusive items create a sense of urgency, tapping into fans’ fear of missing out.
Character-themed products appeal across a wide range of categories – from food and drinks to clothing, toys and travel. By embedding beloved characters into diverse offerings, brands can spark excitement and deliver value, encouraging fans to bring their favorite characters into every aspect of their lives.
Economic pressures are shaping consumer behavior, further pushing character merchandise into the category of discretionary spending. As consumers keep a closer eye on their overall spending, brands can look to maintain relevance by leveraging emotional connections and offering strategic promotions.
Key Issues Covered in the Report:
Emotional connections to fandoms driving consumer behavior
Economic factors impacting spending on merchandise
Purchase occasions for character merchandise
Products and characters purchased
Opportunities for character merchandise in luxury markets
Strategies for brands to engage with consumers through character merchandise
Report Scope
For the purpose of this report, character merchandising is defined as the use of popular (typically fictional) characters from the world of entertainment to promote the sale of consumer goods, including those lines of merchandise that have been especially created to bear the name and image of the character. Characters typically derive from a number of different media, with the most popular being the following:
television series
cartoon feature films
live-action feature films
toys and games
comic books
fiction books
newspaper strip cartoons
computer/electronic games
Character merchandising seeks to promote the sale of consumer goods via the licensing of copyrighted intellectual properties and other means such as television networks, product brands or sports organizations and teams.
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EXECUTIVE SUMMARY
What you need to know
Outlook for character merchandise
Opportunities
Use characters to bring joy to everyday purchases
Leverage luxury partnerships to elevate character merchandise
Keep self-expression at the center of character merchandise
MARKET DYNAMICS
Market context
US economic snapshot
Market drivers
Consumers limit discretionary purchases in times of financial stress
Graph 1: attitudes – spending and budget, 2025
Character copyright and counterfeits complicate commerce
CONSUMER INSIGHTS
What is fandom?
Fandom is all about emotional connection and shared identity
Fandom exists across categories, creating various opportunities to connect and engage with consumers
Graph 2: fandoms of interest, 2025
Consumers can express their fandom a myriad of ways
Purchase occasions
Gifting and treating oneself are catalysts for character merchandise purchases
Focus on gifting, exclusivity and self-care to engage with younger generations
Gifting and nostalgia play a significant role in character merchandise purchases
Graph 3: purchase occasion for character merchandise, by generation, 2025
Children have a strong influence with multicultural families
Children have a strong influence in multicultural families
Graph 4: purchase occasion for character merchandise, by race or ethnicity, 2025
Back to school is a popular time for character merchandise
Products purchased
Nostalgia and style resonate with consumers purchasing character items
Graph 5: attitudes – style and expression, 2025
Consumers are interested in a variety of character products
Graph 6: recipient of character merchandise purchases, 2025
Millennials embrace character merchandise for everyone
Graph 7: recipient of character merchandise purchases, by generation, 2025
Barbie reaches Millennials with Joanna Gaines’ partnership at Target
Characters can include adult-focused content
Graph 8: characters purchased, by generation, 2025
Elevated merchandise: spotlight on luxury
Luxury items with characters drives greater emotional value to each purchase
Collectors see value in unique character merchandise
Limited edition items, paired with luxury, can motivate consumers to shop
Character merchandising can show up across various tiers in the luxury space
INNOVATION AND MARKETING STRATEGIES
Food & drink
Characters on food and drink items can add a spark to everyday purchases
Brands across categories are finding opportunity to include characters to offer unique purchases
Beauty and personal care
Fenty partners with Netflix to offer limited-edition Arcane-branded skin products
Partnerships can help consumers feel connected to their favorite characters
Footwear and accessories
Labubu launches a line of jewelry items
Disney leans into the footwear and accessory space
Travel
Peanuts characters fly in luxury
APPENDIX
Market definition
Consumer research questions
Consumer research methodology
Generations
Abbreviations
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