Lai Lin Thomala
Research expert covering Greater China
Film industry in China - statistics & facts
China retained its position as the world’s second-largest film market in 2024, demonstrating a steady upward trajectory. The country's cinema ticket sales declined by 23 percent to about 42.5 billion yuan, which was 66 percent of the pre-pandemic peak in 2019. The industry has been hit severely by changing consumer behavior after the pandemic curbs, disruptions in movie production and releases, and the rising competition from emerging online entertainment alternatives.
Before the emergence of the pandemic, China had been neck and neck with Hollywood, collecting over nine billion U.S. dollars in box office with a strong market demand. In both 2020 and 2021, the country rose to be the largest cinema market in the world. In terms of production, the country came in fourth after the United States, the United Kingdom, and France, and is eager to make Chinese blockbuster hits. Nonetheless, recent consumer surveys have shown a clear preference shift from cinema experience to alternatives like video streaming and micro dramas.
In terms of market demand, ticket sales volume had been growing steadily before 2020 but the trend has fluctuated since the pandemic. More affordable and accessible home cinema systems, extensive content library of streaming platforms, economic downturn are the major factors making cinema visits less appealing. Besides, Chinese filmgoers are accustomed to low ticket prices, which makes the average price of seeing a film in China much lower in comparison to the U.S. market.
In fact, Chinese filmmakers have enhanced their competitiveness, content quality, and variety. Many latest releases have been well-received among Chinese movie fans and generated over 100 million yuan in the box office. In the recent few years, the appeal of domestic productions focusing on national sentiment remained strong, with Full River Redbeing the blockbuster in 2023 while the first and second part of The Battle at Lake Changjin led the pack in 2021 and 2022. The historical war film raked in almost 5.8 billion yuan of revenue in 2021, breaking the record set by Wolf Warriors 2 in 2017. Other mega-hit domestic titles are the sci-fi movie The Wandering Earth, the animation film Ne Zha, the war film The Eight Hundred. Aiming to achieve international success, more funding has been invested in the Chinese film industry. With production costs over 100 million U.S. dollars, yet the Chinese blockbusters have been struggling to find footing in the global marketplace.
Before the emergence of the pandemic, China had been neck and neck with Hollywood, collecting over nine billion U.S. dollars in box office with a strong market demand. In both 2020 and 2021, the country rose to be the largest cinema market in the world. In terms of production, the country came in fourth after the United States, the United Kingdom, and France, and is eager to make Chinese blockbuster hits. Nonetheless, recent consumer surveys have shown a clear preference shift from cinema experience to alternatives like video streaming and micro dramas.
Once shinning, now losing ground
China’s film industry has come a long way over the past decade. As of the time of writing, there were over 12,000 movie theaters with an average of 6.8 cinema screens. Wanda Cinema Line, Hengdian World Cinemas, and Shanghai Xinyi Cinemas were the largest cinema operators in China. Wanda Cinema Line also ranked first in terms of box office revenue. Many small and independent theaters could not survive the hardship during the COVID-19 pandemic and were acquired by big players in 2022. Even the famous cinema chain Emperor UA Cinema ceased operations of all seven cinemas in mainland China in December 2022, citing significant business losses during pandemic.In terms of market demand, ticket sales volume had been growing steadily before 2020 but the trend has fluctuated since the pandemic. More affordable and accessible home cinema systems, extensive content library of streaming platforms, economic downturn are the major factors making cinema visits less appealing. Besides, Chinese filmgoers are accustomed to low ticket prices, which makes the average price of seeing a film in China much lower in comparison to the U.S. market.
Big challenges to hold appeal
Hollywood studios are eager to grab a slice of China's lucrative box office market, but it has become increasingly difficult for foreign titles to expand their market share in China. The government is highly protective of domestic industries and the film industry is no different. Only a small number of slots for the distribution of foreign films are permitted and a renewed interest in homegrown movies is further strengthening the domestic market. Furthermore, there is a major shift of topic choices towards movies about national identity and sentiment, a theme that could be challenging for overseas filmmakers to replicate.In fact, Chinese filmmakers have enhanced their competitiveness, content quality, and variety. Many latest releases have been well-received among Chinese movie fans and generated over 100 million yuan in the box office. In the recent few years, the appeal of domestic productions focusing on national sentiment remained strong, with Full River Redbeing the blockbuster in 2023 while the first and second part of The Battle at Lake Changjin led the pack in 2021 and 2022. The historical war film raked in almost 5.8 billion yuan of revenue in 2021, breaking the record set by Wolf Warriors 2 in 2017. Other mega-hit domestic titles are the sci-fi movie The Wandering Earth, the animation film Ne Zha, the war film The Eight Hundred. Aiming to achieve international success, more funding has been invested in the Chinese film industry. With production costs over 100 million U.S. dollars, yet the Chinese blockbusters have been struggling to find footing in the global marketplace.
