China’s theatrical market showed a strong recovery in 2025, with total box office revenue reaching RMB 51.83 billion ($7.41 billion) and attendance reaching 1.24 billion, both an increase of more than 20% year-on-year, according to the latest report from Maoyan Entertainment’s research department.
China’s box office revenue in 2024 decreased by 23% to $5.8 billion. The economic recovery in 2025 will be driven primarily by animated titles and IP-driven franchises, with 57 animated films grossing more than RMB 25 billion ($3.57 billion), nearly half of this year’s total box office revenue. Leading the way were the local sequel “Ne Zha 2” ($2.13 billion) and Disney’s “Zootopia 2” ($558.3 million), which had exceptional box office results.
Mao Yang Institute’s 2025 China Box Office Movie Data Insights Report highlights animation’s significant impact on the market’s growth trajectory.
The strength of IP has proven to be particularly strong in the animation space, with some franchises achieving significantly higher rewatch rates than the market average. “Ne Zha 2” achieved the highest rewatch rate of the year, while “Zootopia 2” and other popular titles demonstrated continued fan engagement and loyalty.
The report reveals increasing market concentration around high-profile releases. Of the top 10 new films of 2025, four surpassed the RMB 3 billion ($429 million) box office revenue and eight surpassed the RMB 1 billion ($143 million) threshold. Compared to 2024, the market share of local films increased slightly, but the number of local films with revenue exceeding RMB 1 billion remained stable year-on-year.
However, mid-tier local releases are facing challenges, with revenues for films with box office grosses of RMB 100 million to 500 million ($14.3 million to $71.5 million) and RMB 500 million to 1 billion ($71.5 million to $143 million) declining significantly, highlighting the growing polarization of the market towards blockbusters.
Lower-tier cities have emerged as key growth engines, with the box office contribution of tier 3 and 4 markets reaching a five-year high in 2025, marking the third consecutive year of expansion. The number of people going to see a movie for the first time has increased, and the audience for movies has expanded.
Local productions have moved from overarching narratives to narratives that reflect everyday life, and have adopted a variety of visual styles and genres to suit the varying tastes of audiences. Meanwhile, imported superhero franchises have experienced a notable decline, suggesting that these titles require fresh and creative approaches to maintain market appeal.
“In 2025, several major holiday release periods exceeded expectations thanks to blockbusters, setting multiple new records and bringing pleasant surprises to both the industry and viewers,” said Lai Li, market analyst at Maoyan Entertainment. “The traditional ‘blockbuster model’ in the classic sense is no longer a guaranteed formula for box office success, and it offers new lessons for market participants.”
Looking ahead to 2026, Lai emphasized that the industry must continue to hone its content pipeline by attracting a diverse audience with high-quality films that combine popularity, strong word of mouth, and freshness to unlock further growth potential.
