Market Overview

The character business market size (merchandising, licensing) in FY2021 grew to 2,586.3 billion yen, 102.5% on a YoY basis. In addition to strong performance of the market stemming from the success of characters born from videos such as those streamed by "Kumabarba Channel," there were animation titles that generated great hits such as “Kijutsu Kaisen” and “Evangelion”, and there also were opening of GUNDAM FACTORY YOKOHAMA at Yokohama Yamashita Wharf which led “Mobile Suit Gundam” to gain popularity once again.

The character business market consists of the markets of merchandising and licensing, both of which attained positive growth in FY2021, as merchandising market based on retail sales generated 1,256.3 billion yen, 101.8% on YoY, and licensing market based on contract amount achieved 1,330.0 billion yen, 103.1% on YoY. While plastic models and figures showed strong sales in merchandising market against the backdrop of strong at-home spending, licensing market showed favorable transitions because of invigorated adoption of anime characters due to increased opportunities for viewers to watch TV animation programs and animation films during stay-home restrictions.

Noteworthy Topics

Rising Popularity of Virtual YouTuber

A virtual YouTuber is a generic term for an online performer or a streamer who uses a virtual avatar or a character generated by computer graphics when he/she streams live programs or videos on YouTube and other internet media including social networking services. Unlike those two- or three- dimensional characters created in animation titles and games, such a virtual YouTuber can interact live with audience directly, which sparked popularity. In June 2022, a company that operates a virtual live streaming group has been newly listed in the “Growth” stock market in Japan, indicating virtual YouTuber forming a new character market mainly among young people.

The era when characters were only sold as a product has already ended. Holding live events increases the brand value of characters through the experience of audience participated, and is effective in creating profits from product sales using the characters. It has become increasingly important to create a story to tell for making it a pathway between events held and product sales.

Future Outlook

A variety of affluent characters such as a media mix content “Uma Musume Pretty Derby”, an animation title “SPY×FAMILY”, Tokusatsu entertainment “Ultraman”, etc. are projected to expand the character business market (merchandising, licensing) in FY2022 to 2,619.8 billion yen, 101.3% on a YoY basis.

There are many favorable factors for the market in FY2022, such as the growing recognition of popular characters ignited by social networking services, in addition to product sales at theme parks likely to upturn against the previous fiscal year. Also, events with thorough infection preventive measures at theaters and museums are expected to generate robust performance, though customer attraction may not be recovered in full scale.

Research Outline