The global animation market (demand perspective) was estimated at US $59 billion in 2006 and is expected to reach US $80 billion by 2010, while in India, the animation industry value is pegged at Rs 1,595 crore in the financial year 2007 (FY 07), registering a growth of 24 per cent over the previous fiscal year, with the entertainment segment contributing nearly 68 per cent of the total market in India. Exports, mostly to the United States and Europe, accounted for more than 70 per cent of the revenues in 2006. Over the last three years, merchandise-licensing business in India has been growing at more than 50 per cent and total character licensing sales in India are estimated at Rs 500 crore.

Gaurav Marya, president, Franchise India Holdings Ltd elaborates, “The Indian animation industry is growing rapidly with about 300 animation companies employing 12,000 people and 3,000 freelancers in India. There has also been a steep increase in the number of ways to consume animation content than ever before with more TV channels, increasing accessibility to Internet, proliferation of mobile devices and increasing popularity of mobile, video and computer games, offering humongous potential for the animation and character licensing in India.”

Lately, a slew of players have entered the Indian markets for licensing merchandise and character franchise. Disney Consumer Products occupies the foremost position, with the characters of Mickey and Minnie alone generating 43 per cent of its revenue. King Features Syndicate, a merchandise licensing firm of US-based Hearst Corporation, that owns the characters like Flash Gordon, Popeye and Betty Poop has entered India and is in talks with Indian corporates for licensing deals in food and beverages, kids apparel and footwear, stationery and toys, home décor and furnishings, and the wireless/mobile sectors. Dubai-based SpaceToon Media's Kids Media India has launched licensing and merchandising business in India and South Asian Association for Regional Cooperation (SAARC) countries.