Japan's animation industry contracts on COVID-19 while overseas sales stays strong

TOKYO - According to a report released this month from the Association of Japanese Animations, the animation industry sales last year marked the first year-on-year decline in 11 years, but sales overseas market stayed strong and exceeded the domestic market for the first time, local media reported Thursday.

The report showed that due to the COVID-19 pandemic, the industry's sales amounted to around $21.3 billion, decreasing $775 million from 2019 when the industry marked a record high.

The association determines the annual market size by surveying sales figures of animation-related companies in Japan.

Among the nine categories surveyed, online distribution saw a growth of 36 percent from the previous year. However, live entertainment, including anime music events, fell sharply by 65 percent.

Overseas sales, including from online distribution contracts and anime-related goods, stood at around $10.9 billion with online distribution contracts expanding to nearly 20 percent more regions compared to the previous year.

Hiromichi Masuda, the chief editor of the industry report, said the impact of the pandemic was limited to online distribution, adding that some companies started to strategically plan content and businesses for the growing overseas market.