Anime Industry Thrives in 2025, Faces Looming Challenges Ahead

The anime industry experienced a remarkable surge in popularity throughout 2025, with major titles like Demon Slayer, My Hero Academia, and Solo Leveling dominating streaming platforms. These successes not only captivated a global audience but also positioned anime films, such as Demon Slayer: Infinity Castle and Chainsaw Man – The Movie: Reze Arc, as serious contenders against traditional box office giants like Marvel and DC. Notably, the attention from Hollywood has intensified, with Chloé Zhao, director of Eternals, recently appointed to lead Kodansha Studios, a company dedicated to adapting popular works such as Attack on Titan and Ghost in the Shell.

Despite this booming success, the anime industry is grappling with critical challenges that threaten its long-term sustainability. A study conducted in 2024 by the Nippon Anime & Film Culture Association revealed that approximately 40% of individuals working in the anime sector earn less than ¥2.4 million annually. While this figure may seem modest by global standards, it falls significantly short of Japan’s average salary of around ¥7.7 million, as reported by the OECD. This financial strain is compounded by a culture of overwork, with studios like MAPPA facing scrutiny for demanding long hours from their animators. Although the industry continues to thrive, these labor issues threaten to undermine its future.

The staffing crisis in the anime industry became particularly evident in 2025, as studios struggled to maintain production schedules for highly anticipated projects. Fans expressed frustration over delays for major series such as Demon Slayer: Infinity Castle Part 2 and Solo Leveling Season 3. With a limited pool of skilled workers available, studios like Ufotable and A-1 find themselves constrained in their capacity to deliver timely content.

Quality vs. Quantity: The Struggle for Standards in Anime

While the visual quality of modern anime has reached new heights, meeting the expectations of a discerning audience has proven to be a double-edged sword. The animation produced by studios such as MAPPA is often described as cinematic, but when it fails to live up to these standards, the backlash can be severe. For instance, One-Punch Man Season 3 has been critically panned, resulting in negative reactions from fans that included harassment towards the animators and directors. This incident highlights the intense pressure on creators to consistently deliver exceptional work.

The increased demand for high-quality animation has led to longer production times, prompting some series, including One Piece, to transition from a weekly release format to seasonal airing. The industry is thus caught in a challenging position: striving to meet elevated expectations while facing a dwindling workforce.

AI’s Role in the Future of Anime

The introduction of artificial intelligence in anime production remains a contentious issue. Although some studios are exploring generative AI as a potential solution to labor shortages, the results have often been underwhelming. A notable example is WIT Studio’s short film The Dog & The Boy, which utilized AI for background animation. Critics quickly identified the artificial elements, leading to disappointment among viewers. Similarly, Amazon’s attempt to employ AI for dubbing anime, such as Banana Fish, was met with criticism for its lack of emotional depth and authenticity.

Despite these setbacks, some industry executives view AI as a necessary tool to alleviate the burden on human animators and respond to growing fan demand. A producer for the Pokémon series recently suggested that AI could serve as a lifeline for animators, facilitating the creation of content more efficiently.

The complexities surrounding labor shortages, production quality, and emerging technologies indicate that while the anime industry is not in imminent danger of disappearing, it must adapt to ensure its longevity. Given that Demon Slayer nearly reached $1 billion at the box office, the financial stakes are vast. However, without significant changes to labor practices and a commitment to nurturing new talent, the industry risks stagnation and an inability to take creative risks.

As the anime sector continues to evolve, it is crucial for stakeholders to address these pressing challenges. By reevaluating its approach to labor and production, the industry can attract a new generation of creators and ensure its vibrant future.