Most brands look at licensing as a path into obvious product categories: sauces, snacks, frozen meals, beverages, or packaged takes on their most popular items. But some of the most profitable opportunities in licensing aren’t the obvious ones.
The real, often untapped value lies in secondary markets. These overlooked categories can diversify revenue, improve retail presence, and strengthen consumer engagement. When executed strategically, they can dramatically increase the ROI of a brand licensing program.
What Are “Secondary Markets” in Licensing?
Secondary markets are product categories that fall outside your core offering but still feel relevant and natural to your consumers.
Examples include:
- A restaurant launching meal kits, marinades, or spice blends
- A beverage brand offering mixers, sweet treats, or barware
- A dessert brand creating baking kits or seasonal gifting products
- A snack brand extending into novelty items, collectibles, or apparel
These categories don’t compete with your primary offering, they expand your brand into new occasions and daily rituals.
Why Secondary Markets Are a High-Value Opportunity
1. More Consumption Moments Create More Revenue
A consumer may visit your restaurant weekly, but a retail product like a sauce or seasoning gets used far more frequently. Secondary markets create ongoing brand interactions.
2. They Increase Loyalty and Brand Affinity
When consumers experience your brand across multiple categories, trust and recognition deepen over time.
3. They Offer Less Crowded Retail Space
Highly competitive categories like frozen meals can be difficult to break into. Secondary markets often offer more white space and healthier margins.
4. They Introduce the Brand to New Retailers
Some secondary categories open doors to retailers that may not carry your core products.
How to Identify High-Potential Secondary Markets
Asking the right questions will reveal your strongest opportunities:
- What emotions or experiences define our brand?
- What complementary products enhance our brand story?
- What unmet consumer needs could we solve?
- What product categories align with our consumer’s lifestyle?
The strongest solutions usually uncover overlooked extension paths.
What Happens When Brands Embrace Secondary Markets
Brands that invest in secondary markets consistently see:
- Greater total retail presence
- More stable, diversified revenue streams
- Increased visibility and consumer engagement
- Stronger relationships with retail buyers
- Better insulation from market fluctuations
In many programs, secondary categories eventually outperform the original, expected licensing extensions.
Limiting licensing to only the “obvious” categories means leaving significant revenue and market opportunity on the table. Secondary markets represent powerful ways to expand your brand, reach consumers more frequently, and create long-term growth that feels authentic and relevant.
Ready to discover new opportunities for your brand?
Broad Street Licensing Group helps brands identify, evaluate, and successfully launch high-performing licensing categories across a wide range of industries.
Let’s talk about how secondary markets can unlock new revenue for your brand.
