Introduction: Japan’s rapidly growing content industry

In the present information age, the content industry—which spans film, television, music, gaming and animation—has evolved into a substantial market. According to the Ministry of Economy, Trade and Industry (METI), the global content market is estimated to have reached Japanese yen (JPY) 135 trillion in 2022¹. Japan plays a significant role in this market, influencing popular culture around the world. Estimated at approximately JPY 13 trillion in 2023, Japan’s content market was the third largest globally, following the US (JPY 84 trillion) and China (JPY 42 trillion)².

The content industry in Japan is deeply rooted in anime (Japanese animation) and manga (Japanese comics), which have a global fanbase. The country also boasts an innovative gaming industry, a film sector rich in history and a vibrant music scene dominated by J-pop. Japan’s content industry is undergoing remarkable growth, as overseas sales of Japanese content nearly tripled over the past decade, reaching JPY 5.8 trillion in 2023 as reported by METI³.

Chart 1: Overseas sales of Japanese content have tripled in a decade

Source: METI based on Humanmedia’s “Japan and global media content data base”

According to METI, the revenue generated from Japan’s overseas sales of content surpasses the export value of its semiconductor and steel industries, making it the country’s second largest after the automotive industry. Content has become a potentially lucrative sector for investors seeking long-term growth.

In this article we introduce three factors driving the expansion of Japanese content: cultural foundations, evolving corporate strategies and external market conditions.

1. Rich cultural foundations for character creation

Robotic cats from the future to demon-slaying teenagers

The enduring popularity of Japanese content is driven by iconic characters that have become embedded in popular culture over the years. Among the vast array of beloved characters, notable examples include “Doraemon”, “Super Mario” and “Demon Slayer” (Kimetsu no Yaiba).

Doraemon, a manga and anime series created in the late 1960s about the everyday life of a robotic cat who has travelled back in time to help an adolescent boy, remains a cultural force to this day. Doraemon’s themes of loyalty and friendship in addition to its unique view of futuristic technology have appealed to audiences of all ages globally, particularly in Asia. The Doraemon franchise includes a wide range of merchandise, films and spin-off series.

Super Mario is a video game franchise created by Nintendo in the 1980s, featuring the moustached Mario as the main character. Set in the fictional Mushroom Kingdom, the adventures of Mario have propelled Super Mario to become one of the best-selling video game franchises. The franchise has gone on to include other genres such as film, television and merchandise, and Mario is arguably the most famous video game character in history.

Demon Slayer is a relatively recent addition to Japanese popular culture but has quickly gone on to become a global phenomenon. Originally a manga series which debuted in 2016, it follows the story of Tanjiro Kamado, a young swordsman in the “Demon Slayer Corps” seeking a cure for his demon-transformed sister. A film adaptation, “Demon Slayer: Mugen Train”, which was released in 2020, became Japan’s highest-grossing film, surpassing global blockbusters like “Titanic” and “Frozen⁴.  The entire franchise has achieved major financial success, with the 23-volume manga series, including digital editions, having sold more than 220 million copies as of July 2025, with 164 million sold in Japan and 56 million overseas⁵.

Unique historic environment for character development

The examples above only scratch the surface of the rich and deep Japanese content landscape. It can be said that Japan’s creative diversity was nurtured by the concept of “Yaoyorozu no kami”, an ancient belief that deities or spirits (kami) are present in all things. This belief that the human and natural worlds are interconnected is seen to have fostered anthropomorphism—the attribution of human characteristics to non-human entities—and created an environment for unique character development.

As early as the 12th and 13th centuries, anthropomorphism and character development were evident in a series of picture scrolls known as the “Choju-giga” (humorous drawings of animals). These scrolls depicted frogs, rabbits and monkeys behaving like humans. The series of satirical pictures are considered to be Japan’s first manga. The giga tradition flourished several centuries later when ukiyo-e wood block print artists visually depicted slapstick comedies and parodies for mass consumption. This tradition laid the foundations for modern manga and other forms of popular culture that emerged in the 20th century.

2. Companies focusing on media mix strategies and IP expansion

Japanese content companies have adopted strategies to maximise the value of their intellectual properties (IPs), transforming them into multi-channel, multi-format ecosystems. This approach not only generates revenue but also deepens fan engagement across generations and geographies.

Media mix strategy: maximising revenue across channels

The media mix strategy involves deploying IP across various media formats such as manga, anime, games, merchandise and live events. This increases the content’s exposure to a wide range of consumers and also extends the lifecycle of content. An example is the aforementioned Demon Slayer. It started as a manga series before being adapted into a hit anime. This was followed by the creation of a record-breaking film, video games, merchandise and themed attractions. Each format reinforces the others, creating synergies that generate commercial revenue both domestically and internationally.

Portfolio reform: shifting toward content-centric business models

Major Japanese corporations are restructuring their business portfolios to prioritise content creation and distribution. An example is Sony Group. Traditionally known for electronics, Sony has pivoted toward entertainment as part of its efforts to reform its business portfolio. It is strengthening its music, gaming, film and anime divisions, aiming to create synergies across its group businesses and expand the reach of its content assets. Through subsidiaries like Sony Music Entertainment and Aniplex, Sony has been involved with hits such as the mobile game “Fate/Grand Order” and the Demon Slayer franchise. Sony’s acquisition of streaming services provider Crunchyroll further expanded its global anime distribution capabilities.

IP expansion: diversifying into new formats and experiences

Japanese companies are increasingly treating IPs as core assets, expanding them into diverse formats and experiences (Exhibit 1). Nintendo is an example of a globally recognised game developer opting to expand its IP exposure as a core strategy. While maintaining its focus on dedicated gaming hardware, the company is also extending its IP into other areas such as visual content (“The Super Mario Bros. Movie”), mobile games (“Super Mario Run”) and theme parks (Super Nintendo World in Japan and the US), thereby broadening its audience base.

Exhibit 1: IPs are being expanded into diverse formats and experiences

3. External market conditions: digital technologies and increasing global reach

The rapid evolution of digital technologies and global platforms has been a boon to Japanese content. These factors have extended its reach, making it more accessible and engaging to a global audience. The adoption of digital devices accelerated along with global economic expansion, as well as after the COVID-19 pandemic, and transformed consumer habits. With more people owning smartphones, tablets and smart TVs, content consumption has become more personalised, mobile and on-demand.

Many mobile games have attracted a large number of users; these games often tie into anime and manga franchises and encourage engagement between different media forms. Streaming platforms like Crunchyroll, Netflix and Amazon Prime Video have optimised their apps for mobile viewing, offering easy access to content such as anime. This has introduced Japanese content to markets where traditional broadcast channels are limited. Other platforms include YouTube and TikTok, which have  become vital distribution channels of Japanese music and anime, bringing content to younger audiences.

Conclusion: a fusion of cultural heritage and innovative business strategies

Japan’s content industry represents a dynamic fusion of centuries of cultural heritage and innovative business strategies that the country’s companies have adopted. With strong character-driven storytelling, digital infrastructure and diversified corporate approaches, the sector appears poised for sustained medium- to long-term growth—making it an increasingly attractive market for global investors.