Anime Market

Market Overview

The global anime market was valued at USD 35.34 billion in 2023. It is expected to reach USD 80.70 billion in 2032, growing at a CAGR of 9.61% over the forecast period (2024-32). The rise of streaming platforms like Netflix, Crunchyroll, Hulu, and Amazon Prime has made anime more accessible to international audiences. These platforms offer extensive libraries of anime content, often with simultaneous releases and subtitles in multiple languages.

Anime is the name for Japanese animation and is a well-liked subgenre found on numerous TV shows and streaming services. Anime has a sizable fan base that extends beyond national borders and a sizable portion of international fans. Die-hard admirers of the Japanese art of content creation who import their preferred series, whether new or old, are a significant source of revenue for anime programming. Through fan clubs that release the translated episodes informally, fans can obtain their preferred content on physical media or digitally. The popularity of online videos and shows, increased production of anime films, increased production of TV series, and growing viewer interest are just a few factors driving the anime industry's rapid growth.

Market Dynamics

Market Drivers

Increasing Demand for Anime Content

Accelerating demand and exports of Japanese anime content are driving the growth. For higher revenue generation, the Japanese anime industry currently depends heavily on the export of its anime content. A more significant portion of export sales in the Japanese anime market is being held by internet distribution and application games. Increased use of video-distribution services like Netflix, Amazon, and Chinese platforms is a significant factor in the growth of anime content sales abroad. The quick expansion of smartphone games developed in Japan, including Puzzle and Dragons, Monster Strike, White Cat Project, and Brain Wars, is also significantly boosting the market's overall growth.

Rising Internet Usage and Rising Interest in Anime Video Games

Due to ongoing digitization, high-speed internet connectivity has become standard for businesses and individuals. The widespread adoption of anime video games is significantly aided by the unabated rollout of high-speed data networks and the subsequent rise in data consumption. The high level of adoption of digital media across numerous industry verticals and the growing viewer inclination toward various streaming solutions and services are creating lucrative opportunities for the market's players.

An important factor driving the market's expansion is the rising funding that financial institutions allocate to creating anime video games. For instance, Galaxy Digital Funds provided USD 1.8 million in funding in 2018 to enable the integration of Microsoft Azure's blockchain into video games based on anime. In addition, Reddit also oversees a USD 3.75 million fund for Horizon Blockchain Games, a blockchain-based anime game studio. The market is also anticipated to grow as consumer awareness of interactive entertainment systems rises.

Market Restraints

Low Spending and Scarcity Competent Animators

Low pay and long hours caused a severe artist shortage. Despite spending over an hour on each drawing, animators only get paid about USD 2. Anime artists are unhappy with their pay because they hand-draw every frame. Thus, the industry will face an aging workforce and a shortage of skilled and experienced artists. According to the Japanese Animation Creators Association, a 20-year-old Japanese animator earns USD 10,000, USD 19,000 in their 30s, and USD 31,000 in their 40s and 50s (JACA).

According to a 2016 report by Teikoku Databank, revenue from animation studio jobs has decreased by 40% over the past decade. If the animation industry is to prosper, animators' financial standing must be raised as rapidly as possible. The animation industry, especially in Japan, is overworked, so professional participation in projects is low. Production committees traditionally keep show budgets low. This factor is anticipated to hinder market growth over the forecast period.

Market Opportunities

Rising Projects with High Production Costs and Technological Advancements

According to estimates, the global anime market's high production costs will create profitable opportunities for the industry, accelerating the market's growth rate. The creation of numerous online platforms has significantly aided the growth of the anime market. Several platforms, including Netflix, Amazon, and others, have impressively attracted another aspect of creating anime content.

Key market players embrace cutting-edge technologies to give audiences an immersive experience and gain a competitive advantage, including 3D, blockchain, machine learning, AI, and VR. For instance, in November 2021, a free version of Masterpiece Studio Pro was released by 3-dimension creation and animation software platform provider Masterpiece Studio. The brand-new, cutting-edge platform would provide a full VR creative suite for independent creators and artists using 3-dimensional characters and props for metaverse, games, and animations.

Regional Analysis

By Region, the global anime market is segmented into North America, Europe, Asia-Pacific, Latin America, the Middle East and Africa, and Japan.

Japan Dominates the Global Market

Japan is the most significant shareholder in the global anime market and is expected to grow at a CAGR of 4.8% during the forecast period. Japan held the largest market share in 2021, with over 43.0%, and it is anticipated that it will continue to dominate over the forecast period. Animation studios are thought to be concentrated in Japan. There are about 622 animation studios in Japan, including 542 in Tokyo. In addition, young and imaginative people are incredibly motivated to pursue careers in this sector by the rising popularity of manga, the Japanese comic books.

Additionally, the Asia Pacific Ex. Japan's regional market is also anticipated to witness significant growth over the forecast period in line with the rising popularity of anime content among young individuals in China and India. In particular, it is anticipated that Chinese consumers' growing preference for creating their anime content will fuel the regional market expansion.

The Middle East and Africa (MEA) regional market is anticipated to grow at the fastest CAGR over the forecast period due to the growing fan base of anime content in the region. As a result, the sales of anime content, including comic books, video games, and anime merchandise, show no signs of abating. Several studios, such as Doleep Studios, The Company Films, and RD Content, are working toward catering to the rising demand in the region. The popularity of anime content is rising significantly in Saudi Arabia owing to the presence of one of the largest anime communities. The country is also witnessing an increase in the number of retail stores for anime in various cities, including Khobar, Jeddah, and Riyadh.

Segmental Analysis

The global anime market is segmented based on merchandising, license to consumer goods, publishing, digital downloads, events and experience, advertising and sponsorship, gaming and apps, social media, and content creation.

The market is further segmented by merchandising into Toys, Collectibles, and Apparel. The toys and Collectibles category dominates the anime market. This segment's supremacy stems from the long-lasting attractiveness of tangible, high-quality objects that provide fans with a concrete connection to their favorite characters and series. Collectibles, in particular, appeal to diverse age groups, from young fans to adult collectors, resulting in a large industry. The significant value placed on limited editions and exclusivity expands this segment's income potential. Toys and Collectibles continue to outperform other merchandising areas because of a robust secondary market and the ongoing introduction of new characters and series. The cultural significance and emotional commitment enthusiasts have to their collections ensure this segment's continued relevance.

The market is fragmented through digital downloads into Episodes, Soundtracks, and Digital Art. Episodes and soundtracks dominate the digital downloads market in the anime business because they are essential in delivering core content and improving consumers' viewing and listening experiences. Episodes allow viewers to watch anime conveniently and legally, boosting the industry's efforts to battle piracy and broaden its global audience.

Based on the license to consumer goods, the market is fragmented into Stationery, School Supplies, and Home goods. Home goods have emerged as the dominating segment in the licensed anime consumer goods market due to their widespread appeal and diverse product offerings. This area appeals to a diverse audience, ranging from young fans decorating their rooms to adults who want to personalize their houses with subtle or bold anime-themed products. The variety and functionality of home products ensure that they are not just ornamental but also functional, increasing their appeal. The ongoing production of new anime series and the continued appeal of oldies provide a consistent inspiration for new goods. As fans want to incorporate their passions into all aspects of their lives, home products remain a large and rising segment of the anime merchandise business.

The market is segmented based on comics, manga, books, and novels publishing. Comics and manga dominate the anime publication sector due to their vast popularity and cultural significance. Manga's serialized storytelling approach encourages great reader engagement, while its large spectrum of genres provides a broad demographic reach. Manga's tremendous popularity in Japan is replicated overseas, with several titles becoming best-sellers worldwide. For example, in November 2023, Animoca Brands Japan worked with Quidd to create and launch a bespoke solution to introduce popular Japanese intellectual property to the Western market. Adapting popular manga into anime series increases sales and readership, resulting in a synergistic impact between the two mediums. The digital transformation of manga distribution has also played an essential part in growing its global audience by making it easier for fans worldwide to access and enjoy their favorite series. 

Based on events and experience, the market is fragmented into Conventions and Tours, Theme Parks, and Attractions. Conventions and tours dominate the anime events and experience business due to their enormous appeal and ability to bring big groups of fans together. Conventions mainly function as major cultural events, attracting people worldwide and creating a sense of community among anime fans. Conventions offer various events, from panels and workshops to cosplay and gaming, ensuring that there is something for every fan, regardless of their unique interests. Tours give an extra dimension of engagement by allowing fans to discover the real-world inspirations behind their favorite shows and meet the creators in person. Conventions and tours are successful because of their quick expansion and increasing attendance figures, highlighting their relevance in the anime fan experience. Their capacity to provide unique, personal connections with the anime world distinguishes them as the market's main category.

By advertising and sponsorship, the market is sub-segmented into Product Placement (Incorporate Products in Anime) and sponsorship Deals. Sponsorship deals dominate the market because they are comprehensive and high-impact. Unlike product placement, which incorporates logos discretely into the storyline, sponsorship deals provide more evident and widespread brand exposure. Sponsors can use several platforms and touchpoints, such as TV broadcasts, streaming services, event branding, and unique goods, to ensure their brand is visible across all facets of the anime fan experience. Sponsorships also allow marketers to adapt their sponsorship to specific series, genres, or events that best suit their target demographic. This broader and more direct contact with the anime audience makes sponsorship deals a more powerful tool for brands looking to maximize their impact and return on investment in the anime market. 

Based on gaming and apps, the market is divided into Mobile Apps and web-based Apps. Mobile apps dominate the anime games and apps category due to their extensive acceptance and revenue-generating possibilities. Mobile gaming, in particular, has experienced rapid growth, fuelled by smartphones' expanding capabilities and the global appeal of anime. The ability to download and play anime-themed games directly on handheld devices appeals to a wide range of people, especially younger audiences who are big fans of anime and mobile technology. For example, famous generative AI art producer Midjourney has expanded its synthetic graphics beyond Discord to an Android and iOS mobile app with certain limitations. Midjourney collaborated with Japanese game developer Sizigi Studio to create the Niji Journey app, which focuses on the easily identifiable anime style of imagery and the flourishing Japanese market for related products.

By social media and content creation, the market is classified into YouTube and Patreon (Interviews, Behind Scenes, Un-cut) and MetaVerse (Avatars and Characters). YouTube and Patreon dominate the industry because of their widespread accessibility and many content types. These platforms enable producers to create a wide range of content aimed directly at anime fans, including in-depth analyses and reviews, exclusive interviews, and behind-the-scenes videos. On YouTube, anime fans watch material and frequently make their own, inspired by the genre's particular artistic styles and storytelling themes. Anime is more significant than ever, thanks to its growing appeal among creators worldwide. Last year, countries outside Japan accounted for more than 80% of all anime video views.

Recent Developments

• February 2024 - To transform anime viewing in India, Bharti Airtel and Culver Max Entertainment Private Limited (Sony Pictures Networks India) collaborated to establish an Anime Booth. In order to meet the demands of ardent anime lovers, Anime Booth is designed to give continuous viewing of anime content. It will offer an immersive, ad-free experience.
• May 2024 - On May 12, the JioCinema Premium platform started offering a wide selection of anime entertainment to thrill its members. Leading anime series with a cult following will be available on the platform, with the global simulcast of Demon Slayer Season 4 serving as the main event for the debut.