Anime character licensing guide: how mascot and avatar rights drive merchandise
Character rights are often the most profitable slice of an anime franchise. The deals are public; the royalty rates are not.
Published: 2026-08-19. Updated: 2026-08-19.
Short answer: Anime character licensing grants third parties the right to use animated characters on products, promotions, and experiences. Sanrio, the company behind Hello Kitty, reported fiscal year 2024 revenue of ¥144.9 billion, with licensing accounting for 48.9% of sales. It has signed multi-territory deals such as a Europe and Middle East crafting agreement with Craft Buddy and a North American master toy license with Jazwares. Toei Animation and Crunchyroll secured 45 licensing agreements for the Dragon Ball franchise in a 12-month period, including 18 new licenses and 27 renewals. The manga and anime licensing market was estimated at USD 20.3 billion in 2024, with anime licensing holding a 60% share.
What anime character licensing covers
Character licensing is the right to put an animated or illustrated character on physical goods, digital products, events, or marketing. It is separate from the right to stream the anime or publish the manga. A company can hold a toy license without holding any video rights at all.
The licensor usually provides style guides, approved poses, and restrictions on how the character can be portrayed. Licensees pay a guarantee plus royalties based on wholesale or retail sales. The public rarely sees the royalty rate, but the structure is consistent across the industry.
Sanrio and the standalone character model
Sanrio is the clearest example of a character-licensing business. For the fiscal year ended March 31, 2025, it reported consolidated net sales of ¥144.9 billion, up 45% year over year, and record operating profit of ¥51.8 billion. Licensing revenue accounted for 48.9% of sales, roughly ¥70.8 billion, while product sales made up the rest.
Recent deals show how territory-specific character licensing works. Craft Buddy announced a multi-territory, multi-year agreement covering Europe and the Middle East for Hello Kitty and Friends crafting products, launching Spring-Summer 2026. Jazwares secured a multi-year North American master toy license for Hello Kitty and Friends, with products also reaching parts of South America, Asia, and Europe.
Anime franchises and multi-category licensing
For narrative anime franchises, character licensing is usually bundled with broader franchise management. Toei Animation and Crunchyroll secured 45 agreements for Dragon Ball, Dragon Ball Z, and Dragon Ball Super in a 12-month span, including 18 new licenses and 27 renewals. Partners included Jazwares for Squishmallows-style plush, Hallmark Cards for Keepsake Ornaments, and apparel collaborations with 100 Thieves and Higround.
These deals are not limited to toys. They span apparel, collectibles, food promotions, and location-based entertainment. Crunchyroll's consumer products team manages rights for more than 350 anime series, showing the scale at which character licensing now operates.
Recent anime character licensing activity by licensor and territory.| Company / property | Licensing activity | Recent territory or partner |
|---|
| Sanrio / Hello Kitty | Multi-category lifestyle licensing | Europe, Middle East via Craft Buddy |
| Sanrio / Hello Kitty | Master toy license | North America via Jazwares |
| Dragon Ball franchise | Multi-category franchise licensing | Jazwares, Hallmark, 100 Thieves, Higround |
| Crunchyroll portfolio | Consumer products representation | 350+ anime series managed |
Market size and why character rights scale
Market.us estimates the global manga and anime licensing market at USD 20.3 billion in 2024, with anime licensing alone capturing more than 60% of the total. Digital platforms are the leading application at 40%, but merchandise remains the largest single revenue driver for many franchises.
Character licensing scales because it does not require producing new animation. Once the style guide exists, the same characters can appear on an expanding range of products. That is why a long-running franchise such as Hello Kitty or Dragon Ball can generate licensing revenue years after its original broadcast.
Costs are confidential: Royalty rates, minimum guarantees, and license fees for anime characters are not disclosed publicly. This guide reports verified revenue shares, deal counts, and territory coverage instead of inventing price figures.
How character rights relate to other anime rights
Character licensing is downstream from the anime production and publishing rights. A merchandise licensee cannot create new animated content without separate adaptation rights. Conversely, a streaming platform that licenses the anime does not automatically get the right to sell character merchandise.
For licensors, the challenge is keeping the character consistent across hundreds of products while preventing unauthorized use. For licensees, the challenge is accurately forecasting demand for a character whose audience may be concentrated in specific age groups or regions.
Frequently asked questions
What is anime character licensing?
It is the right to use anime characters on merchandise, promotions, events, and other products. It is separate from streaming, publishing, and adaptation rights.
Who are the biggest anime character licensors?
Sanrio, Toei Animation, and Crunchyroll are major licensors. Sanrio's Hello Kitty accounts for a large share of character licensing revenue, while Crunchyroll manages consumer products for more than 350 anime series.
How much revenue does anime character licensing generate?
Sanrio reported ¥144.9 billion in fiscal year 2024 revenue, with licensing at 48.9% of sales. Market.us estimates the broader manga and anime licensing market at USD 20.3 billion in 2024.
Can one company hold all character rights for a franchise?
Usually not. Rights are split by product category, territory, and retail channel. Dragon Ball, for example, has separate licensees for plush, apparel, collectibles, and food promotions.