“750 million people”
Do you know what this number represents? This is the number of people who enjoy and consume Japanese anime.
Japanese anime (and manga) are becoming increasingly popular not only in Japan but all around the world. The COVID-19 pandemic and consequent international lockdowns boosted global viewership dramatically. Even when the world returned to routine, the anime audience expanded significantly. Raul Prini, CEO of Crunchyroll (which distributes 1,300 anime titles in over 200 countries and territories and has 13 million paying members worldwide), predicts that the anime fan population will exceed a billion people over the next few years. People all over the globe enjoy Japanese anime, and its popularity is starting to have a significant effect on the evolution of business marketing techniques.
COULD ANIME BOOST JAPAN’S FALTERING ECONOMY?
Anime is Japan’s next major export sector. Japanese anime and comics were already popular—Pokémon is the highest-grossing media series ever—but have grown dramatically. The anime market increased in the decade from 2012 to more than $20 billion, owing primarily to international sales. Franchises such as Japanese One Piece and Dragon Ball are significant international brands, while new Studio Ghibli films like The Boy and the Heron are worldwide events. Even in isolated North Korea, the image of Hello Kitty — whose owner Sanrio achieved record profits this year — has seemingly been reproduced on locally-made products, according to the Japanese outlet The Asahi Shimbun.
According to Nikkei Asia, the value of Japan’s anime and other content exports, such as films and games, is nearly equal to the country’s steel and semiconductor chips exports and has the potential to outperform the country’s massive car export industry. Overseas markets will account for around half of all anime customers in 2022, up from 18% ten years ago, according to The Wall Street Journal, while the market value in North America has increased from $1.6 billion in 2018 to $4 billion in 2024, according to Jefferies analysts. “Anime has blockbuster potential, not just for audiences but for investors,” said the reporter.
The 2024 Anime Industry Report was only recently released to the general public, and the data points are from 2023. Nonetheless, some noteworthy figures are available concerning how and where the anime business is expanding. Starting with the greatest amount, the anime business reached 3.3465 trillion yen (approximately US$21 billion) in 2023, its all-time high. This represents a more than 14% increase over the previous year and marks the first time the anime sector has topped 3 trillion yen in revenues. Of it, 3.3465 trillion yen and 1.6243 trillion yen came from domestic sources or within Japan. In contrast, 1.7222 trillion yen came from international sources, indicating that, according to the most current research by the Association of Japanese Animation, the overseas market for anime is greater than the Japanese market, with about a 51.5%/48.5% split.
This is the second time in history that this statistical phenomenon has happened, following 2020, when the association’s 2021 Anime Industry Report revealed a domestic income of 1.1805 trillion yen and international revenue of 1.2394 trillion yen.
In 2020, when the coronavirus pandemic hit full force, Japan had numerous public health protocols (such as restrictions on inbound international leisure travel). Still, there wasn’t anywhere near the shutdown of shopping, restaurant dining, and other leisure activities as there were in several different countries where so many people spent much of the year essentially under self-quarantine at home and, while searching for entertainment options, decided to add anime to their watchlist. In contrast, the Japanese anime market declined significantly in 2020, most likely owing to lower expenditure at fan gatherings, voice actor/actress concerts, and other major in-person events (which were postponed during the epidemic).
So, what about 2023? By then, neither Japan nor the international anime market had seen any long-term pandemic repercussions. While it’s tempting to focus on the numbers in the most recent Association of Japanese Animation report, which are 1.6243 trillion yen for Japan and 1.7222 trillion yen for other nations, the non-numerical component of those data, yen, is equally important. The yen has been falling in value against foreign currencies in recent years, so if you measure the total value of the anime market in yen, as the association’s report does, the amount of revenue from foreign sources will increase even if foreign currency revenue does not increase significantly. It’s also worth mentioning that anime revenue in Japan has not been stable, with the estimate indicating a 10.6% gain between 2022 and 2023.
JAPANESE ANIME MARKET TRENDS
Global Expansion Through Localisation and Streaming
Japanese anime’s worldwide appeal is being pushed by more content localisation and the growing influence of streaming services. Localisation initiatives, such as multilingual subtitles, dubbing, and culturally appropriate storytelling, enable anime to reach a varied international audience. For example, on September 14, 2024, Visionary AI Cinema (VAC) collaborated with Japanese streaming platforms and content creators to improve localised entertainment experiences through AI-powered suggestions. VAC’s activities include promoting Japanese anime and original content worldwide, promoting cultural interchange while enhancing viewer happiness, and expanding Japan’s streaming and animation sectors internationally. Platforms like Netflix, Amazon Prime Video, and Crunchyroll are growing their anime collections and commissioning unique material through simulcast releases and targeted marketing. These strategies increase anime’s worldwide appeal and position it as a mainstream entertainment medium, supporting long-term growth and cultural interaction.
Increasing Demand for Original Anime Content
The Japanese anime business is seeing a massive increase in original material development, indicating a shift away from comics, novels, and game adaptations. This trend gives producers more creative flexibility, allowing them to create distinctive stories and novel tales that appeal to a worldwide audience. A notable example is Ninja Kamui, an original anime by famed director Sunghoo Park that will premiere on Adult Swim’s Toonami on February 10, 2024. The series, which features Takashi Okazaki’s character designs and Coldrain’s soundtrack, reimagines ninjas in the near future. Ninja Kamui: Shinobi Origins, the videogame adaption, will be released in spring 2024. This trend is driven by the need for high-quality, fresh material from worldwide streaming platforms and varied viewers, allowing studios to build new intellectual properties and provide a continual supply of unique anime content that maintains the industry’s global appeal and cultural impact.
Marketing and Establishing Franchises
Merchandising and brand development have emerged as key income drivers in the Japanese anime sector. Successful anime shows can develop into multidimensional franchises that include films, merchandising, computer games, and theme park attractions. Collectables such as action figures, clothes, and unique products are highly sought after by fans and generate significant revenues. Notably, on May 22, 2024, McFarlane Toys collaborated with VIZ Media to manufacture detailed 7″ action figures based on BLEACH: Thousand-Year Blood War, which includes ultra-articulation and 22 moving components. These collectables, available in late Summer 2024, will appeal to long-time and new BLEACH fans while emphasising the booming anime-inspired product sector. Franchise-based ventures, such as themed cafés and exhibits, increase fan interaction while using intellectual property across platforms, fostering long-term profitability, brand loyalty, and the industry’s resilience in a competitive global environment.
THE HISTORY OF ANIME AS A TOOL OF JAPANESE SOFT POWER
According to a retrospective published earlier this year by Australia’s ABC News, anime has long been a component of Japanese soft power. The industry had a significant part in defining Japan’s postwar image. Along with video games, anime contributed to the country’s status as a cultural powerhouse, even as its economic supremacy weakened after the 1980s. After the 1988 debut of Akira, the outlet claimed that anime’s popularity rose in the United States, projecting an “anti-Disney” image that aided its organic growth. That popularity has persisted—DataHorizzons Research from 2023 shows that the anime market is expected to exceed $60 billion by 2032.
Using anime as a marketing approach may effectively communicate brand messaging to Japanese and international consumers. Animated material and characters can appeal to a wide range of age groups, particularly younger viewers in their teens and twenties. Jutsu Kaisen, which enjoys huge domestic and worldwide appeal among young people, has caused quite a stir with its partnership with DOLCE & GABBANA. The anime utilised in marketing includes “One Piece,” “JoJo’s Bizarre Adventure,” and other prominent anime. Collaborations between rising anime and local and foreign businesses such as “Jutsu Kaisen,” “Oni no Kai,” and “SPY x FAMILY” have also been favourably welcomed.
In other circumstances, organisations create custom animated videos based on the message they want to express. Japanese animation has a big global fan following because of its advanced production technique and distinctive storyline, among other aspects. This makes it a valuable marketing tool for Japanese and foreign businesses, regardless of whether they want to target a domestic or worldwide audience.
4 BENEFITS OF ANIME MARKETING
- Establishing an Emotional Bond: Anime enhances its emotional bond by introducing viewers to distinctive characters and narratives. This is a fantastic method to help viewers get more connected with and attached to a company, which may increase brand loyalty and long-term engagement.
- Increasing Brand Recognition: Audiences are more likely to recall visually stunning animated films, which may significantly raise brand recognition. Specifically, commercials and promos that use well-known and well-liked anime might garner greater attention than standard ads.
- Reach Out to Diverse Markets: Anime can readily adapt to various languages and cultures, making it appropriate for localisation tactics in global marketplaces. This enables the delivery of a unified brand message to the Japanese market and multiple markets in Europe, the United States, and other Asian nations. Animation-based commercials may quickly generate attention abroad. To spread the word further abroad, users have frequently contributed subtitles to additional content in English, Chinese, Spanish, and other languages besides official translations.
- Reaching the Younger Generation: Anime has a significant global impact on Gen Z and other younger generations. Because they have spent most of their lives surrounded by much information from the internet, Gen Z has been dubbed a generation of “digital natives.” Since a large portion of Gen Z enjoys anime and manga, marketing to them using this medium works well.
Anime, formerly considered a niche entertainment, is rapidly gaining mainstream popularity. Watching Japanese anime from practically anywhere globally via video streaming services is now feasible. This animation aims to raise Yanmar’s brand recognition among a global audience. Furthermore, it seeks to increase knowledge of sustainability initiatives by infusing the worldwide shared objective of creating a sustainable society into the anime tale.
Where does anime go next? It is anyone’s guess. We will probably see the first anime girl on the moon in a year or two.
