Japan’s anime market hits record $28.2 billion as domestic spending sees a major jump

Japan's anime industry is entering a new phase, and the latest figures suggest its biggest growth story may no longer be limited to international audiences. From packed cinemas and streaming platforms to merchandise stores, anime has become a major part of global entertainment spending. Yet something equally important is happening at home. Japanese consumers are spending more on the medium, giving the industry another source of momentum. Worldwide spending reached a record $28.2 billion in 2025, marking the strongest annual growth recorded by the industry.Streaming success and international box office hits expand anime’s reachThe latest figures from the Association of Japanese Animations (AJA) show that global spending on Japanese anime climbed to JPY4.45 trillion, equivalent to approximately $28.2 billion, in 2025. The increase of 15.8% from the previous year marked a new annual growth record, narrowly surpassing the 15.7% rise recorded in 2024.The announcement came from Hasegawa Masahiro, editor-in-chief of the AJA's annual Anime Industry Report. He presented the preliminary figures on Friday at TIFFCOM, the entertainment market held alongside the Tokyo International Film Festival. The complete findings are expected to feature in the 2026 edition of the report, scheduled for publication in December.One of the most interesting developments is the return of stronger growth in Japan's domestic market. Local spending rose 14.1% to JPY1.91 trillion, or around $12.1 billion. That represents a considerable improvement from the 4.6% growth recorded in 2024, based on revised figures for 2023.For an industry that has relied heavily on international expansion in recent years, the domestic figures offer another reason for optimism. Japanese audiences are continuing to support anime through several entertainment channels, including films, television, streaming services, music and merchandise.The broader market figure captures consumer spending across these different categories. It does not represent the money collected by animation studios alone. That distinction is important when measuring how much of anime's growing popularity translates into direct revenue for the companies producing it.Overseas anime revenue crosses $16 billion as global popularity expandsInternational audiences remain a major force behind Japan's anime business. Overseas revenue increased 17.2% to JPY2.54 trillion, approximately $16.1 billion, during 2025. Foreign markets accounted for 57.1% of total industry spending, compared with 56.5% in the previous year.The overseas market has been larger than Japan's domestic market since 2023, and the difference has continued to grow. However, the latest figures reveal that the industry is not simply depending on international demand. Both markets recorded strong gains in 2025.The growing international reach of Japanese animation also reflects how audiences discover entertainment today. Streaming platforms have made anime easier to access across different countries, while theatrical releases and merchandise have created additional ways for popular titles to reach consumers.Hasegawa also highlighted the importance of successful Japanese productions finding audiences across international markets. He pointed to Japanese titles achieving strong box office positions in several territories and appearing prominently on global streaming charts."Just last week, I saw a report that a Japanese anime was No. 2 globally," he said. "I believe the breakthrough has truly been achieved."There is another side to this financial success. Revenue earned directly by animation studios reached JPY505.5 billion, around $3.2 billion, representing an 8.4% annual increase. Overseas business contributed 27.9% of that studio revenue, up from 25.5% in 2024.The difference between overall consumer spending and studio earnings highlights the complicated business structure behind anime. Studios do not always control distribution rights or negotiate directly with overseas partners, which can limit the share of international revenue reaching them.Hasegawa noted that more studios are seeking greater control over their intellectual property and the income generated from their productions."The idea of studios holding the rights to their own works and managing them to generate revenue is growing year by year," he said.With domestic spending accelerating and overseas audiences continuing to expand, Japan's anime industry has reached an important milestone. Its next challenge will be ensuring that the companies creating these popular stories also benefit from the growing global business.Get the latest Bollywood & Entertainment News, and more. Download the TOI app.Give your child the gift of confidence! Claim your exclusive TOI Masterclass spot today!