In 2025, China’s licensing industry is at a crucial point for both cultural innovation and commercial growth, as the market incorporates more diverse intellectual property (IP) categories and channels than ever before.
The annual China Licensing Industry Report, compiled by the China National Light Industry Council and Licensing Council of China, now in its ninth edition, remains the world’s only comprehensive analysis of the country’s licensing landscape—offering essential guidance for policymakers, business strategists, and brand managers.
Industry Growth and Economic Impact
The licensing sector’s influence on national consumption has sharply increased, driven by governmental promotion efforts including the “Year of Consumption Promotion” and the ongoing 14th Five-Year Plan. In 2024, total retail sales of licensed products soared to RMB155.09 billion, a robust 10.7% year-on-year rise, while royalty collections reached RMB5.99 billion (up 9.4%). With 664 registered licensors, a modest but significant 1.4% annual growth, China’s market remains both stable and expansive, now licensing 2,758 distinct IPs.
Geographical concentration remains marked: Shanghai leads with 201 licensors, followed by Beijing (149) and Guangdong (147), collectively comprising nearly three-quarters of all national licensors. Zhejiang is also on the ascent as a crucial market, though its growth rate has slowed.
IP Categories and Consumer Profiles
Cartoon & animation IPs cling to leadership at 27.8% market share, but their growth slows as video games emerge as the fastest-rising category (up 5.4 percentage points). Newly added IP portfolios in 2024 are overwhelmingly animation-focused (64.6%), followed by art & culture (10.1%) and movies/TV (10.1%).
Consumer Trends: The Rise of Gen Z
China’s Gen Z (ages 19–35) constitutes 70.1% of IP purchasers, combining adolescents and young adults with robust disposable income. The market for licensed products is diversifying at both ends; the youngest consumers still favor classic animation, while adults and the elderly embrace sophisticated art collectibles and lifestyle IPs.
Consumer motivations are split: “General consumers” make random purchases or buy for their children, driven mainly by aesthetic appeal, scarcity, and positive educational values. “IP enthusiasts,” comprising about half, prioritize emotional resonance, social status, and deep affinity for favorite IPs—sometimes using IPs as social currency or even pet substitutes.
