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Celebrity

Royalty Profile for Celebrity-based Licensed Merchandise

 

Sector value, U.S. & Canada, 2017: $5.92 billion

  • Entertainers/Models: $2.66 billion
  • Chefs/Home-Related: $2.19 billion
  • Digital/Other: $1.07 billion

Proportion of retail sales of licensed merchandise, U.S. & Canada, 2017: 5.4%

  • Entertainers/Models: 2.4%
  • Chefs/Home-Related: 2.0%
  • Digital/Other: 1.0%

Average royalty, U.S. & Canada, 2018: 10.23%

  • Entertainers/Models: 10.35%
  • Chefs/Home-Related: 9.65%

Royalty range, U.S. & Canada, 2018: 2%–18%

  • Entertainers/Models: 4%–18%
  • Chefs/Home-Related: 2%–16%

Average royalty, U.S. & Canada, (10 years) 2009–2018: 10.24%

  • Entertainers/Models: 10.36%
  • Chefs/Home-Related: 9.69%

Analysis

Much of the growth in this sector over the last decade has come in the fashion and HBA categories. Fragrances and beauty products have become a popular choice for brands. Others are active in home furnishings, jewelry, apparel, and related categories.

Popularity has drained for celebrity chefs such as Guy Fieri, Rachael Ray, Mario Batali, and Wolfgang Puck in merchandise ranging from pots and pans to dressings and marinades. Some social media celebrities are picking up the slack, but they do not command as high royalties yet.

Both fragrances and kitchen staples such as cookware are relatively high-priced and, at least in these categories, sometimes command a premium from the consumer at retail. This can contribute to above- average royalty rates.


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