The Surge of 'Demon Slayer' Mirrors Hollywood's Slump in Asia

The Rise of "Demon Slayer" and the Shift in Global Box Office Power

The recent success of Sony/Crunchyroll's "Demon Slayer: Infinity Castle" has marked a significant milestone in the American box office, becoming the highest-grossing anime film in U.S. history. With a domestic total of $70 million and over $400 million worldwide, the film is on track to surpass major summer blockbusters like "The Fantastic Four: First Steps" and "Superman." This achievement highlights a broader trend: the growing dominance of non-Hollywood films in global markets, particularly in Asia.

As "Demon Slayer" continues to thrive, it joins the ranks of other international hits like "Ne Zha 2," which is also expected to make an impact on the 2025 global box office charts. This shift signals a changing landscape where traditional Hollywood blockbusters are no longer the sole drivers of revenue. Instead, local productions from countries like Japan and South Korea are gaining traction, reshaping the industry’s dynamics.

A Decline in Hollywood’s Influence in Asia

The decline of Hollywood’s dominance in Asia can be attributed to several factors, including the disruptions caused by the COVID-19 pandemic and the 2023 Hollywood strikes. These events created gaps in the market that were quickly filled by local content. Countries with established film industries, such as Japan and South Korea, have leveraged their own production capabilities to meet audience demand, reducing reliance on U.S. films.

In 2019, all ten of the highest-grossing films globally were produced by Motion Picture Association (MPA) member studios, with the top six earning more than 60% of their revenue outside the United States. However, this year, only two of the nine MPA films in the top 10 have achieved similar foreign revenue shares. For example, Universal’s "Jurassic World Rebirth" earned 60.6%, while Warner Bros./Apple’s "F1" reached 69%. In contrast, "Superman" and "Fantastic Four" had lower foreign revenue percentages at 42.5% and 47.3%, respectively.

The Impact of Local Content on Theater Revenue

The rise of local films has also influenced theater operators like Imax. During the first half of 2025, non-Hollywood films accounted for 40% of Imax’s box office revenue, driven largely by "Ne Zha 2" and a broader push for local language content. This marks a significant increase from previous years, where the percentage of non-Hollywood films never exceeded 20% in any given half-year. Imax has already grossed $316 million from local language films, breaking the previous record of $243 million set in 2023.

Daniel Loria, senior vice president of content strategy at Boxoffice, noted that the global box office has had to adapt to recent disruptions. Countries with mature local film industries, such as Japan and South Korea, have been able to recover faster after the pandemic by relying on their own productions. This resilience has made these industries more competitive than they were before the pandemic.

Case Studies: Japan and South Korea

Japan serves as a prime example of this shift. In 2024, only two Hollywood films—Pixar’s "Inside Out 2" and Illumination’s "Despicable Me 4"—made it into the top 10 highest-grossing films in the country. "Inside Out 2" ranked seventh with $34.3 million, while the highest-grossing live-action Hollywood film, "Wonka," earned just $15.4 million. In contrast, the highest-grossing Japanese film of 2024, "Kingdom 4: Return of the Great General," earned $50 million.

South Korea, while somewhat more balanced, still sees a strong presence of local films. In 2025, four of the top 10 films were Hollywood titles, including "F1" at No. 1 with $38.9 million. However, local films like the horror comedy "My Daughter Is a Zombie" also performed strongly, grossing $38.2 million.

Vietnam and the Rise of Local Hits

Vietnam has also seen a surge in local film success. Since the pandemic, the top five highest-grossing films in Vietnamese history have all been released post-pandemic, with the top three coming out in the last 18 months. The war film "Red Rain" remains the highest-grossing film in Vietnamese history, with $21.2 million in revenue so far. This figure is nearly double the $11.7 million earned by "Avengers: Endgame" in the country before inflation adjustments.

The Future of Hollywood and Global Markets

With audiences increasingly favoring culturally relevant content, the era of nine films hitting $1 billion worldwide in a single year, as seen in 2019, may be fading. While "Ne Zha 2" grossed $1.9 billion, only Disney’s "Lilo & Stitch" has reached the $1 billion mark this year. Other films like "Zootopia 2" and "Avatar: Fire and Ash" are expected to join the list soon.

As the industry evolves, Hollywood faces pressure to adjust its strategies, focusing on maximizing post-theatrical value through streaming and merchandise. However, the future of theatrical output remains uncertain, especially with ongoing consolidation among major studios. If Hollywood returns to releasing 80 to 90 wide-release films annually, it could reshape the global box office once again. For now, the rise of non-Hollywood films continues to redefine the entertainment landscape.