The anime film “Demon Slayer: Kimetsu no Yaiba – Infinity Castle: Part 1” broke multiple box office records upon its release in July 2025. This accomplishment reflects the growing size of Japan’s anime industry in recent years. Anime generated a record-high 3.3 trillion yen in revenue in 2023, with overseas revenue surpassing domestic revenue for the first time.
At the same time, viewers are shifting from traditional TV broadcasts toward online streaming platforms. In response, Japanese anime producers face challenges in balancing domestic and overseas audiences and adapting to changing viewing habits.
The film “Demon Slayer: Infinity Castle” achieved phenomenal success in Japan, breaking multiple box office records upon its release on July 18, 2025, by Aniplex and Toho. It earned 1.64 billion yen ($11.1 million on opening day and set a new single-day record with 2.04 billion yen on its third day. It grossed 5.52 billion yen over its first three days, marking the biggest-ever opening weekend in Japanese box office history.
Remarkably, it became the fastest film in Japanese history to surpass 10 billion yen, doing so in just eight days. Notably, the previous record had been held by “Demon Slayer: Mugen Train,” an earlier movie in the same series, which did it in 10 days.
As of September 11, the movie had grossed 31.7 billion yen, securing its place as the second highest-grossing film in Japanese box office history, behind “Demon Slayer: Mugen Train” (2020), and ahead of “Spirited Away” (2001), “Titanic” (1997), “Frozen” (2014), and “Your Name (2016).
Outside of cinemas, the TV show “Demon Slayer” reached 15.4 million viewers with its Swordsmith Village Arc, making it the most-watched anime in Japan in 2023. Looking globally, “One Piece” accumulated 261.6 million hours watched on Netflix, ranking as the second most-viewed anime on the platform after ”Demon Slayer.”
The success of the “Demon Slayer” series underscores the strength of Japan’s anime industry. According to the Association of Japanese Animations (AJA), Japan’s anime industry generated a record-high 3.3 trillion yen ($22 billion) in revenue in 2023, marking a 14 percent year-on-year increase from 2022. Overseas revenue for anime, covering distribution contracts, merchandise, and more, surpassed domestic revenue, accounting for $11.25 billion (51.5 percent) versus $10.6 billion (49.5 percent) earned domestically in 2023.
According to a Teikoku Databank Trend Survey, the anime production market – companies producing anime content for TV, films, streaming, and more – also reached a record scale in 2023, growing by 22.9 percent to 339 billion yen from 2022. Additionally, there has been an increasing number of streaming and theatrical releases by anime production companies. Streaming surpassed TV broadcasting for anime content in terms of revenue for the first time in Japan in 2020, with continued momentum into subsequent years.
The increase in streaming releases reflects a shift in anime consumption patterns. An online Cross Marketing survey spanning 1,100 adults aged 20 to 69 across Japan in 2024 shed light on anime viewing habits and preferences among Japanese adults. In terms of viewing time, 27.1 percent watch less than 1 hour of anime every month, while 33.4 percent watch more than 1 hour every month (ranging from 15.4 percent at under 4 hours to 2.5 percent at over 40 hours).
When watching anime, 56.7 percent reported watching via real-time TV broadcasts, while 48.8 percent use paid streaming services. But there’s a stark generational divide: 66.7 percent of those in their 20s favor streaming, and 80.4 percent of those in their 60s prefer watching TV.
Top reasons for watching anime include “works in my favorite genre” (52.3 percent), “nostalgia for previously enjoyed anime” (40.9 percent), and “interest in adaptations of manga I read and liked” (39.0 percent). This shows that anime viewers are motivated by commitment to specific genres and familiar works, and the success of anime is often built upon the popularity of the original manga.
The top three anime genres were “Mystery/Suspense,” “Action/Battle,” and “Everyday/Leisurely,” with “Action/Battle” favored by men and “Everyday/Leisure” favored by women. The top recommended titles were “Demon Slayer,” “Detective Conan,” “One Piece,” “That Time I Got Reincarnated as a Slime,” “Oshi no Ko,” and “Frieren: Beyond Journey’s End.” Many respondents cited interesting foreshadowing, non-monotonous narratives, and thought-provoking stories when recommending these shows. From this, we can infer that viewers expect a lot from the story itself, and are not content with just visual effects in anime.
The expansion of Japan’s anime industry overseas, with the help of online streaming services, underlines how entertainment can become a form of cultural asset and soft power. At the same time, Japanese anime producers and studios face challenges from both domestic and international competitors. They need to take into account not only domestic but also overseas audiences, who are taking up a larger share of the revenue. Additionally, they need to adapt to the increasing number of young viewers who stream content online. Manga adaptations face additional hurdles: they need to showcase technical innovation while preserving the artistic style and emotional depth of the original works beloved by fans.
The success of franchises like “Demon Slayer” exemplifies what is possible when visual sophistication, strong storytelling, and cultural authenticity converge.