Unleashing the Power of the Emerging Tier: Unexplored Opportunities and Growth Potential

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October 29, 2025

The global entertainment landscape is undergoing a dramatic shift, with Japanese Intellectual Property (IP) increasingly at the forefront. A recent keynote address at TIFFCOM by Filosophia’s Tetsu Fujimura revealed the staggering rise of Japanese manga, anime, and games in worldwide markets, fueling a new era of adaptation for film and streaming platforms.

Fujimura highlighted a key statistic: IP-based films now account for nearly 90% of the global Top 30 box office revenue,a significant leap from the 10-20% recorded just three decades ago. This surge is largely attributed to the phenomenal success of Japanese properties.

The Rise of Japanese IP: A Global Phenomenon

Iconic Japanese franchises such as Pokemon, Hello Kitty, and super Mario Bros consistently rank among the world’s most lucrative IPs. This success is not limited to established names; films based on Godzilla, Sonic The Hedgehog, and Resident Evil have also achieved blockbuster status.

In 2024 alone, Godzilla x Kong: The New Empire and Sonic The Hedgehog 3 were both top ten worldwide grossing films, both originating from Japanese IP. Moreover, original Japanese anime, exemplified by Demon Slayer: Kimetsu no Yaiba – The Movie: infinity Castle, is now a significant force in global cinema, securing a fifth-place ranking with $666 million in revenue to date.

Underpinning The Boom: industry Growth & Market Capitalization

This cinematic success is fueled by robust growth within Japan’s core entertainment industries. The manga market has doubled from $9.9 billion in 2020 to $18 billion in 2025,with projections for a further doubling by 2030. Similarly, the anime market reached $34 billion in revenue in 2024, up from $31 billion the previous year.

sony Interactive Entertainment currently reigns as the world’s largest games company, generating $31.7 billion in revenue, surpassing China’s Tencent at $27.3 billion. This demonstrates the consistent strength and global appeal of Japanese entertainment.

industry	2020 Revenue (USD Billion)	2024/2025 revenue (USD billion)
Manga	9.9	18
Anime	31	34
Games (Sony)	N/A	31.7

Bridging East and West: Hollywood’s Embrace of Japanese IP

The proliferation of Japanese IP in Western markets is, in part, due to strategic partnerships between Japanese firms and Hollywood studios. Tetsu Fujimura, through his consulting firm filosophia, has been instrumental in facilitating these collaborations, starting with the 2017 live-action remake of The Ghost In The Shell.

Fujimura also played a vital role in the development of the Netflix series One Piece,describing it as the frist manga-based live-action series to achieve global success,garnering 54 million views and 410 million hours watched since its 2023 release. He emphasized the importance of collaboration with original creators, citing the involvement of One Piece author eiichiro Oda in the creative vision.

What lies Ahead: Pipeline and Future Potential

Currently, approximately 65 Japanese IP properties are in development with Hollywood studios and streamers. Upcoming projects include films based on manga such as Astro Boy, Gantz, and One Punch Man; anime adaptations including Your Name and Mobile Suit Gundam; and game-based films like Legend Of Zelda and street Fighter. Several major series are also in the pipeline.

Despite acknowledging that not all projects will succeed, Fujimura notes a widening scope, with attention shifting toward lesser-known titles with immense potential. He points to the success of autonomous games like Exit 8 as an example, signaling increasing opportunities in novels, light novels and indie games.

did You Know? the combined market capitalization of Japan’s top nine entertainment companies now exceeds that of the top nine automakers, highlighting the industry’s growing economic significance.

Pro Tip: Prosperous adaptation of Japanese IP requires a deep understanding of the source material and a commitment to maintaining its core essence.

The Long-Term Outlook

The success of Japanese IP in the global entertainment market isn’t a fleeting trend, but rather a presentation of the enduring appeal of compelling storytelling and unique creative visions.The continued investment in adaptation, combined with the growth of the underlying industries in Japan, suggests this momentum will continue for years to come. This represents a significant shift in the center of gravity of global entertainment, and could reshape the industry for decades.

Frequently Asked Questions About Japanese IP

• What is driving the global popularity of Japanese IP? The global popularity of Japanese IP is driven by the high quality of storytelling, unique character designs, and the increasing accessibility through streaming platforms.
• What types of Japanese IP are most successful in the West? Manga, anime, and video games are the most successful formats, proving highly adaptable to film and television.
• Are there any challenges to adapting Japanese IP for Western audiences? Challenges include maintaining cultural authenticity, avoiding stereotypes, and ensuring the adaptation resonates with a new audience.
• What is the role of streaming services in the growth of Japanese IP? Streaming services have played a critical role in expanding the reach of Japanese IP, making it more accessible to a global audience.
• What does the future hold for Japanese IP in global entertainment? the future looks shining, with ongoing investment and the exploration of newer, less-established properties.

What other Japanese properties do you think would make successful film or television adaptations? Share your thoughts in the comments below!

What key indicators, beyond GDP, should investors prioritize when identifying promising nations within the Emerging Tier?

Defining the Emerging Tier – Beyond BRICS

The term “emerging markets” often conjures images of the BRICS nations (Brazil, Russia, India, China, and South Africa). However, a dynamic shift is underway. A new “Emerging Tier” – encompassing countries demonstrating robust economic growth, political stability, and increasing integration into the global economy – is gaining prominence.These aren’t necessarily replacements for the BRICS,but represent a broader spectrum of opportunity. Identifying these nations requires looking beyond headline GDP figures and focusing on key indicators like:

* GDP per capita growth: Sustainable, long-term growth is crucial.

* Foreign Direct Investment (FDI) inflows: Demonstrates investor confidence.

* Political and regulatory stability: A predictable environment for business.

* Infrastructure development: Essential for supporting economic activity.

* Demographic trends: A young, growing workforce is a meaningful advantage.

Currently, countries frequently cited within this Emerging Tier include Indonesia, Vietnam, the Philippines, Malaysia, mexico, and increasingly, nations in Eastern Europe like Poland and Romania. even smaller economies like Costa Rica and Panama are demonstrating extraordinary growth trajectories. This next generation of growth markets presents unique advantages.

Why Focus on the Emerging Tier? – The Investment Case

The allure of the Emerging Tier lies in its potential for higher returns compared to saturated developed markets. Here’s a breakdown of the key benefits:

* Higher Growth Rates: These economies are often growing at a considerably faster pace than developed nations, offering greater potential for investment gratitude.

* Diversification: Investing in the Emerging Tier can diversify your portfolio, reducing overall risk. Correlation with developed markets isn’t always strong.

* Untapped Consumer Markets: A rapidly expanding middle class in these countries is driving demand for goods and services. Consumer spending is a major growth engine.

* Lower Valuation Multiples: Assets in the Emerging Tier are frequently enough undervalued compared to their counterparts in developed markets.

* innovation Hubs: Many Emerging Tier countries are becoming centers of innovation,notably in areas like fintech and renewable energy.

However, it’s not without risk. Emerging market risk – including currency fluctuations, political instability, and regulatory changes – needs careful consideration.

Sector-Specific Opportunities Within the Emerging Tier

Certain sectors are particularly well-positioned to benefit from the growth of the Emerging Tier.

* Technology: Rapid adoption of mobile technology and increasing internet penetration are driving growth in e-commerce, fintech, and digital services. Vietnam and indonesia are particularly strong in this area.

* Infrastructure: Significant investment is needed to upgrade infrastructure in many Emerging Tier countries, creating opportunities in construction, engineering, and materials. The Philippines is actively seeking infrastructure investment.

* Consumer Goods: A growing middle class is driving demand for consumer goods, including food, beverages, apparel, and household products. Mexico benefits from proximity to the US market.

* Renewable Energy: Many Emerging Tier countries are investing heavily in renewable energy sources to reduce their reliance on fossil fuels. Brazil is a leader in biofuels.

* Healthcare: Improving healthcare access and quality are priorities in many Emerging Tier countries, creating opportunities in pharmaceuticals, medical devices, and healthcare services.

Navigating the Challenges: Risk Mitigation Strategies

Investing in the Emerging Tier requires a proactive approach to risk management. Here are some key strategies:

1. Due Diligence: Thoroughly research the political,economic,and regulatory environment of each country before investing.
2. Currency Hedging: Mitigate the risk of currency fluctuations by using hedging strategies.
3. diversification: Spread your investments across multiple countries and sectors within the Emerging Tier.
4. Local Partnerships: Collaborate with local partners who have a deep understanding of the market.
5. Long-Term Outlook: Investing in the Emerging Tier is a long-term game. Be prepared to ride out short-term volatility.
6. ESG considerations: Environmental, Social, and Governance factors are increasingly critically important. Invest in companies with strong ESG practices.

Case Study: Indonesia – A Rising Star

Indonesia, with its population of over 270 million, exemplifies the potential of the Emerging Tier. Its economy has demonstrated consistent growth, driven by a young, dynamic workforce and abundant natural resources.

* Digital Economy Boom: Indonesia’s digital economy is one of the fastest-growing in Southeast Asia, fueled by the rise of e-commerce platforms like Tokopedia and Shopee.

* Infrastructure Development: The Indonesian government is investing heavily in infrastructure projects, including roads, ports, and airports.

* FDI Inflows: Indonesia has attracted significant FDI inflows in recent years, particularly in the technology and manufacturing sectors.

* Challenges: Bureaucracy and corruption remain challenges, but the government is taking steps to address these issues.

Indonesia’s success story demonstrates the potential rewards of investing in the Emerging Tier, but also highlights the importance of understanding the specific challenges of each market.

Practical Tips for Investors

* Utilize ETFs and Mutual Funds: Investing through exchange Traded Funds (ETFs) or mutual funds specializing in emerging markets can provide instant diversification