Anime is Officially $3 Billion~ More Popular Internationally Than Japan, Confirms New Study

Japan’s anime industry has officially hit a staggering new milestone, and it’s international audiences who are now the primary engine for this explosive growth, with overseas markets pouring in over US$3 billion more than the entire domestic Japanese audience.

Per Deadline, a new report from the Association of Japanese Animations (AJA) presented at TIFFCOM by Megumi Onouchi (AJA committee member and CEO of Japan’s HumanMedia Inc.) revealed that the anime industry grew by 14.8% in 2024 to hit a record US$25 billion (3.8 trillion yen). This surge was fueled by overseas revenue, which soared to US$14.25 billion (2.17 trillion yen), accounting for 56% of all income. In contrast, the domestic market brought in US$10.97 billion (1.67 trillion yen), or 44% of the market share. While the international market has grown an impressive 26% from the previous year (~US$11.93 billion), the domestic anime market has more or less remained flat, as it generated only US$10.67 billion the previous year.

International Anime Market Is Now Bigger Than Japan’s in Revenue

This international dominance is reflective of a trend that has been solidifying for years. The AJA’s report, which analyzed over two decades of data, highlighted 2020 as the first year international sales surpassed domestic revenue, largely due to revenue generated by global streaming platforms during the pandemic. Though the domestic market briefly reclaimed the lead in 2021, overseas revenue definitively pulled ahead in 2023 with a 51% share, and it has now increased to a 56% majority in 2024.

According to Onouchi, this growth trend is only set to continue. “Overseas revenue is now climbing high and has not yet reached the peak,” Onouchi stated, pointing to the 160 anime-related events now held across 50 countries as proof of this expanding footprint. Onouchi also suggested that future growth could come from secondary businesses, such as merchandising and events, as the current revenue model is still heavily reliant on streaming licenses.

The anime industry is a cornerstone of the Japanese government’s ‘New Cool Japan Strategy,’ which has set an ambitious goal of reaching US$130 billion (20 trillion yen) for its content industry — including anime, manga and video games — by 2023. This strategy is built on a proven track record, as from 2013 to 2023, overseas content sales generated an estimated US$39.7 billion. The export value of Japan’s entertainment industry now exceeds that of its steel, petrochemical and semiconductor sectors.

However, despite its massive growth, certain long-standing and critical problems have plagued the industry to date. The sector is infamous for its personnel shortage issue, fueled not just by a lack of talent but by systemic issues of overwork, low pay and precarious employment. Animators, especially those in entry-level and freelance positions, often face punishingly long hours, alongside wages that can fall well below the minimum, leading to burnout. Industry veterans, including Evangelion creator Hideaki Anno and Cowboy Bebop creator Shinichiro Watanabe, have repeatedly warned that this unsustainable culture threatens the future of anime production.

Recognizing that its most valuable cultural export is at risk, Japan has begun to implement new support structures. The government recently unveiled the “Global Anime Challenge” (GAC), a program designed to channel resources into nurturing and supporting up-and-coming animators to create a more sustainable infrastructure. This effort is joined by non-profit organizations like the Nippon Anime & Film Culture Association (NAFCA), which works to improve the working conditions and provide critical training for creators, aiming to protect the industry and its artists for future generations.