Unleash Anime Spirits: India Must Tap the Fast-Growing Global Animation Market as Part of Its Orange Economy Push

The global popularity of anime is experiencing rapid growth, with more than half of its revenue now coming from international markets. This expansion is driven by streaming services and lucrative collaborations with brands, elevating anime into a worldwide intellectual property phenomenon.

Though blockbuster films and rising international production highlight significant opportunities, the industry faces challenges such as low wages for workers and a shortage of talent. To address these issues, the industry is exploring the use of artificial intelligence (AI) to streamline production processes.

From 2015 to 2024, the anime industry in Japan increased in value from $15.1 billion to $25.3 billion, showing an average annual growth rate of about 6%. Notably, global markets now generate 56% of the industry’s total revenue, approximately $14.25 billion in 2024, while Japanese domestic revenue accounts for 44%, or $10.97 billion.

International demand is accelerating rapidly, growing 26% year-over-year, compared to a modest 2.8% increase in domestic revenues.

Diverse Revenue Streams and Expanding Markets

The anime market encompasses much more than content creation; it includes streaming platforms, merchandise, music, gaming, and live entertainment. In 2024, global streaming led revenue contributions, followed closely by merchandising, illustrating anime’s evolution into a broad intellectual property-driven enterprise.

Streaming services such as Crunchyroll, which offers the largest anime library, alongside Netflix and Amazon Prime with select titles, have enhanced global accessibility. Nearly half of Netflix subscribers engage with anime programming, indicating its widespread appeal despite a limited catalog.

Sony has notably benefited from its acquisition of Crunchyroll in 2021, with its paid subscriber base more than tripling.

Brand Collaborations and Commercial Success

Anime’s growing popularity extends beyond viewership to substantial commercial gains for brands. Limited-edition products and collaborations generate strong demand among dedicated fans and attract new customers.

  • Adidas’ Evangelion-themed sneakers sold out worldwide quickly.
  • Collections from Uniqlo (Demon Slayer) and Bershka (My Hero Academia) sold out within hours.

Luxury and lifestyle brands are engaging with the anime trend to maintain cultural relevance. Collaborations include Gucci with Doraemon in China and Dolce & Gabbana’s Jujutsu Kaisen line.

Watchmakers like Seiko and Casio G-Shock have released character-inspired collections targeting anime fan communities, reflecting the industry’s broadening impact.

Shifts in Distribution and Revenue Channels

Traditional TV broadcasting remains a significant revenue channel but is declining due to the rise of streaming platforms.

Collaborations between anime studios and gaming companies have turned gaming into a key revenue area, and live events have become important sources of income.

Anime Films as Global Blockbusters

Anime feature films have become major contenders alongside global titles. For example, the 2025 anime film Demon Slayer: Infinity Castle became the highest-grossing Japanese film worldwide, earning over $800 million globally.

The film’s advance ticket sales and high percentage of premium format views—including IMAX and PLF accounting for 44% of box office revenue—highlight its strong fanbase.

Another 2025 release, the action horror film Chainsaw Man: Reze Arc, earned $191.4 million worldwide, ranking among the top-grossing Japanese films and signaling a shift toward global blockbuster status beyond niche fandoms.

Expansion Beyond Japan

Anime production has expanded beyond Japan, with South Korean manhwa and Chinese donghua gaining worldwide popularity.

The ‘webtoon’ series Solo Leveling achieved significant international success and acclaim. Chinese animated works like Lord of the Mysteries have been praised for cinematic storytelling and animation quality.

Industry Challenges and Workforce Concerns

Despite its growth, the anime industry faces serious structural challenges.

  • Approximately 40% of workers earn less than $15,400 annually, substantially below Japan’s average salary of about $49,000.
  • Animators often endure long working hours and demanding schedules, leading to criticism over working conditions.
  • A shortage of skilled talent limits capacity as global demand surpasses studio capabilities, causing some studios to close due to financial pressures and manpower shortages.

The Role of Artificial Intelligence in Anime Production

Artificial intelligence presents potential solutions by automating repetitive tasks such as background art and coloring, assisting with storyboarding and speeding up production.

This allows creators to concentrate more on storytelling and character development.

Toei Animation has adopted AI-assisted background studios using tools like Midjourney and Stable Diffusion for filler episodes to reduce animators’ workloads.

AI technology could alleviate industry constraints and improve efficiency.

Implications for India’s Orange Economy

India is encouraged to engage with this expanding and lucrative animated AVGC (animation, visual effects, gaming, and comics) sector as part of its strategic emphasis on developing the orange economy.

Key Takeaways

  • Global anime revenue is increasingly driven by international markets, surpassing domestic revenues.
  • The anime industry includes diverse revenue streams beyond content, such as merchandising, gaming, and live events.
  • Brand collaborations with anime have proven commercially successful across various market segments.
  • Production challenges include low wages, long hours, and a shortage of skilled talent.
  • Artificial intelligence adoption offers promising efficiencies in animation production.
  • India has a strategic opportunity to tap into the fast-growing global animation market within its orange economy initiatives.