The anime industry has experienced significant growth in market valuation over the past five years; the world is now more sensitive to the medium’s creations. Anime like Demon Slayer: Infinity Castle and *Solo Leveling *are irrefutable proofs of the industry’s appeal, with the former eclipsing Hollywood blockbusters at the box office and the latter increasing anime’s popularity.

In a recent report from the Association of Japanese Animations (AJA) at TIFFCOM, Asia’s premier audiovisual content market, they unveiled the anime industry’s record-breaking market valuation of $25.25 billion (JPY 3.84 trillion) in 2024. The exponential growth in the industry’s value heralds a new era that will be reflected in the quality of anime shows henceforth.

Anime Market Valuation Reaches A New All-Time High, Underscoring the Medium’s Global Appeal

Anime’s profitability has grown significantly over the past two decades, reaching a market valuation worth billions. In August, Research and Markets published a report estimating the manga market — a sub-branch of the anime industry — to be worth $14.97 billion in 2024, and is projected to reach $63 billion in 2023.

Demon Slayer: Infinity Castle premiered in September and has amassed an enormous box office draw of over $600 million, surpassing other Hollywood hits, including DC’s latest Superman movie. With these factors underpinning anime’s mega-profitability, the recent data released at TIFFCOM is among anime’s current successes.

The Association of Japanese Animations (AJA) presented a report at TIFFCOM, the market division of the Tokyo International Film Festival. The report documented a 14.9% surge in the valuation of the anime industry in 2024. Consequently, the industry is now worth $25.25 billion (JPY 3.84 trillion), surpassing its previous record of $21.27 billion.

In 2023, the industry experienced a 14.3% growth in comparison to 2022. The yearly spike in the industry’s valuation accounts for the burgeoning returns experienced by the industry both in production and in the broader anime market.

Megumi Onouchi, Japan’s HumanMedia CEO at AJA, also detailed some eye-openeing aspects of the reports that track the industry profit source. According to the AJA committee member, the industry’s overseas revenue was significantly higher than the domestic returns. For context, 56% of the new valuation ($14.25 billion) originated from overseas markets, and Japan’s domestic market accounted for the remaining 44%.

The 44% of the total income amounts to $10.97 billion (JPT 1.67 trillion), which represents a minimal yearly increase compared to 2023’s $10.67 billion; however, 2023 came with better odds for Japan against overseas returns, with a 49% share. This data makes one thing clear: a larger part of the anime industry’s success hinges on foreign reception and the proliferation of the medium’s productions.

Despite the Broader Anime Market Pulling In Heavy Returns, The Production Aspect Is Seeing Profits That Will Influence the Quality of Shows

According to Variety, alongside the report, AJA chair Kazuko Ishikawa, CEO of Nippon Animation, stated that “anime has become a core pillar of Japan’s cultural and economic exports.” Furthermore, Ishikawa assured that the association is currently striving to improve workplace conditions for creators, enabling them to maintain and increase the standard of production.

The comment made by Nippon Animation’s president is an assuring one, given the prevailing ills of the anime industry. Studios have been stretched thin in terms of budgeting, resulting in substandard productions, and manga creators have been severely overworked to meet the growing demands for weekly manga chapters.

The next Anime Industry Report, slated for release in December, will categorise the anime industry into two sectors. One sector would focus on tracking profits solely in the production space, which is essentially studio earnings. On the other hand, the other sector will analyse non-production aspects, such as consumer spending, anime licensing, and others.

The 2024 report highlighted a $3.06 billion market value in the production aspect, representing a 9.1% increase from 2023. So far, the production market has been growing steadily over the years, indicating that the standard of anime shows will continue to improve. Furthermore, with the association’s efforts to standardize productions, it’s certainly a promising new era for anime.

Japan Intends To Intensify Its Efforts In Positioning Anime As A Core National Industry

Anime is clearly one of Japan’s most profitable markets, and the country intends to fully maximise the industry’s capabilities. Per Variety, under the revised Cool Japan initiative, the country has set a lofty goal to increase overseas content sales exponentially from $38 billion in 2023 to $131.4 billion (JPY 20 trillion) in 2033.

These national goals will be reflected in welcoming changes in the industry through collaborations and increased exporting of the anime in its various forms. Additionally, at TIFFCOM, another report titled, ‘The Cutting Edge of Japanese Animation’s Global Expansion” was presented. The report was spearheaded by three iconic Japanese studios: Bandai Namco, Studio4℃, and Toho Global.

The theme of this presentation was to outline the winning strategies the studios intend to capitalise on to outpace competitors in international markets. From the presentations at TIFFCOM, one laudable truth is clear: anime is here to stay, and Japan is well-equipped to make it happen.