2025
9
US Character Merchandising Market Report 2025
2025-12-04T18:02:17+00:00
REP863F3D58_DDD7_4812_B0E3_36078E6BFACF
3695
189381
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Report
en_GB
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."

Katie Hansen, Senior Analyst - Retail & eCommerce

Katie Hansen, Senior Analyst - Retail & eCommerce

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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  1. 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
  2. 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
  3. 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
  4. 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
  5. APPENDIX

    • Market definition
    • Consumer research questions
    • Consumer research methodology
    • Generations
    • Abbreviations

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