Deliver Your News to the World

Toy brand values grow as post-pandemic play proliferates


View the full Brand Finance Toys 25 2023 ranking here

Lego is the world’s most valuable toy brand for the ninth year running

Denmark’s Lego is the world’s most valuable toy brand for a ninth consecutive year, according to a new ranking from the world’s leading independent brand valuation consultancy, Brand Finance. This came as Lego saw a 24% year-on-year brand value increase to US$7.4 billion. Best known for its iconic Lego bricks, the toy production company’s brand value accounts for a quarter of the value of the whole ranking and is worth more than four times as much as the next most valuable brand.

Every year, leading brand valuation consultancy Brand Finance puts thousands of the world’s biggest brands to the test, and publishes over 100 rankings, evaluating brands across all sectors and countries. The world’s top 25 most valuable and strongest brands in the toys industry are included in the annual Brand Finance Toys 25 2023 ranking.

US-based toy brands dominate the top 10, but Japanese brands still feature

Behind Lego, American toy brands dominated the top ten of the ranking, making up 7 out of 10. The country also accounted for 17 of 25 brands in the overall ranking, highlighting that the United States exerts significant clout in this culturally important sector.

Despite the large number of American brands, the second most valuable toy brand is Bandai Namco (brand value down 9% to US$1.6 billion) from Japan. It remains in second spot despite experiencing a 9% brand value decrease this year.

Magic: The Gathering is the fastest growing brand with an impressive 122% brand value increase

Magic: The Gathering (brand value up 123% to US$352.26 million) has built a huge global fanbase since its inception in 1993. However, it continues to invest in its future, building upon its strong live platforms to expand digital and online offerings.

Star Wars is the strongest brand, but Fisher-Price is hot on its heels

In addition to calculating brand value, Brand Finance also determines the relative strength of brands through a balanced scorecard of metrics evaluating marketing investment, stakeholder equity, and business performance. Compliant with ISO 20671, Brand Finance’s assessment of stakeholder equity incorporates original market research data from over 150,000 respondents in 38 countries and across 31 sectors.

Ranked for the first time as a toy brand, Star Wars (brand value US$262 million) was the strongest brand with a Brand Strength Index (BSI) score of 88 out of 100 and corresponding AAA rating. The brand has benefited from a number of successful films and spin off series in recent years resulting in strong brand equity amongst consumers along with highly-regarded toys.

Marginally behind Star Wars as the second-strongest brand was Fisher-Price (brand value up 18% to US$879 million) and a Brand Strength Index of 88 and AAA brand rating. It was also the 3rd most valuable brand in the ranking and the most valuable American toy brand in the ranking.

View the full Brand Finance Toys 25 2023 report here

About Brand Finance

Brand Finance is the world’s leading brand valuation consultancy. Bridging the gap between marketing and finance, Brand Finance evaluates the strength of brands and quantifies their financial value to help organisations of all kinds make strategic decisions.

Headquartered in London, Brand Finance has offices in over 20 countries, offering services on all continents. Every year, Brand Finance conducts more than 5,000 brand valuations, supported by original market research, and publishes over 100 reports which rank brands across all sectors and countries.

Brand Finance is a regulated accountancy firm, leading the standardisation of the brand valuation industry. Brand Finance was the first to be certified by independent auditors as compliant with both ISO 10668 and ISO 20671, and has received the official endorsement of the Marketing Accountability Standards Board (MASB) in the United States.

MethodologyDefinition of Brand

Brand is defined as a marketing-related intangible asset including, but not limited to, names, terms, signs, symbols, logos, and designs, intended to identify goods, services, or entities, creating distinctive images and associations in the minds of stakeholders, thereby generating economic benefits.

Brand Strength

Brand strength is the efficacy of a brand’s performance on intangible measures relative to its competitors. Brand Finance evaluates brand strength in a process compliant with ISO 20671, looking at Marketing Investment, Stakeholder Equity, and the impact of those on Business Performance. The data used is derived from Brand Finance’s proprietary market research programme and from publicly available sources.

Each brand is assigned a Brand Strength Index (BSI) score out of 100, which feeds into the brand value calculation. Based on the score, each brand is assigned a corresponding Brand Rating up to AAA+ in a format similar to a credit rating.

Brand Valuation Approach

Brand Finance calculates the values of brands in its rankings using the Royalty Relief approach – a brand valuation method compliant with the industry standards set in ISO 10668. It involves estimating the likely future revenues that are attributable to a brand by calculating a royalty rate that would be charged for its use, to arrive at a ‘brand value’ understood as a net economic benefit that a brand owner would achieve by licensing the brand in the open market.

The steps in this process are as follows:

1 Calculate brand strength using a balanced scorecard of metrics assessing Marketing Investment, Stakeholder Equity, and Business Performance. Brand strength is expressed as a Brand Strength Index (BSI) score on a scale of 0 to 100.

2 Determine royalty range for each industry, reflecting the importance of brand to purchasing decisions. In luxury, the maximum percentage is high, while in extractive industry, where goods are often commoditised, it is lower. This is done by reviewing comparable licensing agreements sourced from Brand Finance’s extensive database.

3 Calculate royalty rate. The BSI score is applied to the royalty range to arrive at a royalty rate. For example, if the royalty range in a sector is 0-5% and a brand has a BSI score of 80 out of 100, then an appropriate royalty rate for the use of this brand in the given sector will be 4%.

4 Determine brand-specific revenues by estimating a proportion of parent company revenues attributable to a brand.

5 Determine forecast revenues using a function of historic revenues, equity analyst forecasts, and economic growth rates.

6 Apply the royalty rate to the forecast revenues to derive brand revenues.

7 Discount post-tax brand revenues to a net present value which equals the brand value.


Brand Finance has produced this study with an independent and unbiased analysis. The values derived and opinions presented in this study are based on publicly available information and certain assumptions that Brand Finance used where such data was deficient or unclear. Brand Finance accepts no responsibility and will not be liable in the event that the publicly available information relied upon is subsequently found to be inaccurate. The opinions and financial analysis expressed in the study are not to be construed as providing investment or business advice. Brand Finance does not intend the study to be relied upon for any reason and excludes all liability to any body, government, or organisation.

The data presented in this study form part of Brand Finance’s proprietary database, are provided for the benefit of the media, and are not to be used in part or in full for any commercial or technical purpose without written permission from Brand Finance.

( Press Release Image: )


This news content was configured by WebWire editorial staff. Linking is permitted.

News Release Distribution and Press Release Distribution Services Provided by WebWire.