Character Licensing Trends in Packaged food, and beauty & Personal Care in Western Europe

Strategy Briefing

About This Report

Jan 2018

There are many categories in packaged food, and beauty and personal care in Western Europe which remain untapped by character licensing. Restrictions on unhealthy food packaging are a challenge, but healthy eating and product formulation could bring opportunities. Character licensing in dental health offers prospects, although unfavourable demographics may hinder growth. This is an exciting journey shaped by key developments and opportunities presented by a rich and developed region.

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Character Licensing Trends in Packaged food, and beauty & Personal Care in Western Europe

Size of the prize

Retail value sales of licensed and non-licensed licensing related categories in packaged food, and beauty and personal care* reached USD267 billion (2017) and USD38 billion (2016), respectively, in Western Europe. Dairy, the largest category in food, is projected grow by USD1.8 billion by 2022, while oral care, an important category for character licensing, is forecast a 2% CAGR in constant value terms over 2016-2021.

Declining birth rates bring challenges and opportunities

Western Europe had the lowest birth rate globally in 2016, at just 10.9 births per 1,000 inhabitants, which is expected to drop to 9.9 by 2030. Although a declining birth rate and postponing motherhood suggest trouble for character licensing targeting children, with higher disposable incomes and fewer children, parents are likely to increase the amount that is spent on their children, becoming less concerned about the prices and short life cycles.

Opportunities beyond established categories for characters in packaged food

Other baby food** is a category with considerable prospects for characters, since, unlike milk formula, there is no legislation that prevents licensing. There is also great interest in protein coming from other sources than meat, and on-the-go dairy products that provide non-meat protein. On the back of this trend, three categories stand out in particular which offer good potential for character licensing: cheese, flavoured milk drinks and drinking yogurt. Fruit and nut bars also remains broadly untapped.

Opportunities beyond established categories for character licensing in beauty and personal care

While there is already much licensed merchandise targeting children, when children reach a certain age it tends to stop. In shampoo, there is an opportunity to target tweens, young boys and girls with character licensed merchandise. In men’s grooming, characters could expand their penetration by targeting male consumers at an earlier age. Skin care, deodorants, fragrances and hair care also present good prospects. Character heroes from Marvel, DC Comics and Star Wars could lead the way, as they are well positioned to target this demographic.

Note: *Packaged Food = Breakfast cereals , Ice cream, Dairy, Confectionery, Soup , Cakes, Pasta, Savoury snacks, Sweet biscuits, snack bars and fruit snacks. Beauty and Personal Care = Baby and child-specific products, Oral care, Colour cosmetics and Fragrances.

Note: ** Includes packaged food products specifically marketed for babies such as baby rusks, teething biscuits, baby fruit juices and baby pasta, but excludes dried and prepared baby food and milk formula.

Introduction

Scope
Key findings (1)
Key findings (2)
Key findings (3)

Overview and Key Macro-economics

Size of the prize
Key macro-economic factors
Declining birth rates bring challenges and opportunities

Western Europe: Character Licensing in Packaged Food

Packaged food: size of the prize
Dairy and confectionery: top brands
Healthy eating: a key trend shaping the industry
Product reformulation could bring more opportunities
Netherlands removes characters from unhealthy food packaging
End of characters on unhealthy food packaging?
Countries pledge to restrict marketing for unhealthy food to children
Packaged food: opportunities beyond established categories
Opportunities beyond established categories for characters (contd)
Category highlight: breakfast cereals in the UK
Category highlight: packaged cakes in Turkey
Packaged food: opportunities for character licensing
Packaged food: opportunities for character licensing (contd)

Western Europe: Character Licensing in Beauty and Personal Care

Beauty and personal care: size of the prize
Baby and child-specific products, and oral care: top brands
Baby and child-specific products: important category for licensing
Baby wipes presents good prospects for characters
Rise of natural/organic products in baby care: opportunities for characters
Oral care: a key target for characters
Characters could help to boost good dental health
Colour cosmetics: eye make-up ? Turkey most receptive to licensing
Fragrances: greater challenge by fashion and c elebrity l icensing
Opportunities beyond established categories for character licensing
Beauty and personal care: opportunities for character licensing
Beauty and personal care: opportunities for character licensing ( contd )

Local Character Franchises Case Studies

Western Europe: popular local character licences
Case study: Pepee
Case study: Pepee
Case study: Pinocchio
Case study: Pinocchio