China's theatrical market experienced a significant rebound in 2025, with total box office revenue reaching RMB51.83 billion ($7.41 billion) and admissions climbing to 1.24 billion. Both figures represented year-over-year increases exceeding 20%, a stark contrast to the 2024 plummet of 23% to $5.8 billion. This robust recovery, detailed in a report from Maoyan Entertainment’s research division, was primarily driven by the exceptional performance of animated titles and IP-driven franchises.

A notable highlight of the 2025 market was the success of animated films, which generated over RMB25 billion ($3.57 billion) in revenue from 57 titles, accounting for nearly half of the year’s total gross. Leading this surge were local sequel “Ne Zha 2,” which raked in $2.13 billion, and Disney’s “Zootopia 2,” with $558.3 million. The Maoyan Research Institute’s “Insight Report on 2025 China’s Box Office Film Data” underscored animation's substantial impact on the market’s growth. The strength of intellectual property (IP) was particularly evident within the animation sector, with certain franchises achieving significantly higher rewatch rates compared to the market average, showcasing sustained fan engagement and loyalty. “Ne Zha 2” registered the highest rewatch ratio of the year.

The report also revealed an increasing market concentration around tentpole releases. Among the top 10 new films of 2025, four surpassed RMB3 billion ($429 million) at the box office, and eight crossed the RMB1 billion ($143 million) threshold. While local productions secured a slightly larger market share compared to 2024, the number of local films grossing over RMB1 billion remained consistent. Conversely, mid-tier local releases faced challenges, with films earning between RMB100-500 million ($14.3 million-$71.5 million) and RMB500 million-1 billion ($71.5 million-$143 million) experiencing marked declines, signaling a growing polarization toward blockbuster projects.

Crucially, lower-tier cities emerged as vital growth engines, with third- and fourth-tier markets' box office contributions reaching a five-year high in 2025, marking three consecutive years of expansion. The audience base expanded as well, with an increase in first-time and infrequent moviegoers. Local productions demonstrated a shift from sweeping narratives to stories reflecting everyday life, utilizing diverse visual styles and genres to cater to varied audience preferences. In contrast, imported superhero franchises saw notable declines, suggesting a need for fresh creative approaches to maintain their market appeal.

Maoyan Entertainment market analyst Lai Li commented on the year’s success, stating, “In 2025, several key holiday release windows outperformed expectations thanks to the support of breakout hits, setting multiple new records and delivering pleasant surprises to both the industry and audiences.” Li also noted that the traditional “blockbuster model” is no longer a guaranteed formula for success, offering new lessons for industry participants. Looking ahead to 2026, Lai emphasized the industry’s need to continually refine its content pipeline and attract diverse audience segments with high-quality films that combine popularity, strong word-of-mouth, and freshness to unlock further growth potential.