MoonFox Analysis | "ACGN Merch Economy" Surge and the Breakthrough of the "Dimension Wall" in ACGN Consumption

Rhea-AI Summary

Aurora Mobile (JG) released a market analysis through its MoonFox Data division highlighting the surge in China's ACGN (Anime, Comics, Games, Novels) industry. The report reveals that China's ACGN market reached RMB 221.9 billion in 2023, with projections to hit RMB 270 billion in 2024 and exceed RMB 590 billion by 2029.

The analysis shows that peripheral derivative markets now account for 46.1% of the industry, up from 28% in 2016. The user base has expanded significantly, with approximately 460 million users by 2021. The report also highlights the success of physical ACGN retail stores, with KAYOU leading with 318 locations, and notes successful IP collaborations between major brands like Pizza Hut, KFC, and HEYTEA with popular ACGN franchises.

Positive

• Market size projected to grow from RMB 221.9B in 2023 to RMB 590B+ by 2029
• Peripheral derivative market share increased from 28% to 46.1% (2016-2023)
• Large user base of 460 million as of 2021
• Strong retail expansion with KAYOU leading at 318 store locations

Negative

• None.

Insights

Market Research Analyst

The ACGN (Anime, Comics, Games, Novels) merch economy in China is experiencing remarkable growth, with the market projected to reach 270 billion RMB in 2024 and exceed 590 billion RMB by 2029. The peripheral derivative market's share has significantly increased from 28% in 2016 to 46.1% in 2023, indicating a major shift in consumer behavior and market dynamics.

A critical analysis of the data reveals three key investment implications: 1) The massive user base of 460 million ACGN consumers represents a substantial addressable market, 2) The strong holiday seasonality pattern in user engagement suggests predictable revenue cycles and 3) The successful transformation of traditional retail spaces into ACGN-focused venues, exemplified by Bailian ZX Creative Center's 300 million RMB in sales, demonstrates the sector's potential for physical retail transformation.

Retail Industry Expert

The expansion of ACGN retail stores, led by KAYOU with 318 locations, signals a significant shift in China's retail landscape. The success of major food and beverage chains' ACGN collaborations, including Pizza Hut, HEYTEA and KFC, demonstrates how mainstream brands are effectively monetizing this cultural phenomenon.

The transformation of traditional retail spaces into ACGN-focused venues has proven highly successful, with foot traffic increasing 3-8x post-conversion. This represents a viable strategy for struggling traditional retailers to revitalize their businesses and capture the growing youth market. The sector's strong performance during holiday periods suggests optimal timing for retail promotions and inventory management.

Consumer Behavior Analyst

The data shows a clear generational shift in consumer preferences, with users under 25 showing significantly higher engagement with ACGN content (TGI of 280 for ACGN communities). The evolution of ACGN merchandise from simple collectibles to "social currency" among young consumers represents a fundamental change in how brands must approach youth marketing.

The successful integration of ACGN elements into mainstream retail and F&B brands indicates that this is not a passing trend but a structural shift in consumer culture. The high engagement rates during holiday periods (reaching 41.5 million users) suggest that ACGN has become deeply embedded in youth leisure activities and social interactions, creating sustainable long-term demand for related products and experiences.

About us: Aurora Mobile (NASDAQ: JG) established in 2011, is a leading customer engagement and marketing technology service provider in China. Its business includes notification services, marketing growth, development tools, and data products. As its sub-brand, MoonFox Data is a leading expert in data insights and analysis services across all scenarios, aiming to help companies gain market insights and empower precise decision-making.

SHENZHEN, China, Dec. 26, 2024 /PRNewswire/ -- In today's cultural consumption landscape, the "ACGN Merch Economy" (Anime, Comics, Games, Novels) is rapidly gaining momentum. The consumption of "ACGN Merch" has emerged as a hot topic in the market. This concept originates from ACGN culture and refers to an economic model centered around virtual content, including anime, games, and novels. It generates commercial value through various means, such as derivatives, copyright operations, and offline activities. With the widespread dissemination of ACGN culture and the continuous expansion of its audience, the influence of the "ACGN Merch Economy" has transcended traditional boundaries, permeating mainstream culture and the real economy. This phenomenon blurs the lines between the previously separate worlds of ACGN and the real world. As the "ACGN Merch Economy" continues to extend its influence across multiple dimensions, its market impact and commercial value are becoming increasingly evident.

I. User Expansion: "ACGN Merch" Becomes the New Social Currency for the Younger Generation

Historically, ACGN culture has been viewed as a niche subculture, but it is now trending toward wider popularity and mainstream acceptance. According to public data, the size of China's ACGN industry reached RMB 221.9 billion in 2023, with projections estimating it will grow to RMB 270 billion by 2024. By 2029, the market value is expected to double, exceeding RMB 590 billion. The industry is primarily divided into content markets and peripheral derivative markets. In 2023, the peripheral derivative market accounted for 46.1% of the industry, reflecting a significant increase of 18.1% since 2016. This notable growth underscores the rise of the peripheral derivative market as a key driver in the ongoing expansion of the ACGN industry.

Chinese ACGN Industry Market Size

Year	Industry Size (Billion RMB)	Annual Growth Rate
2023	2219	-
2024E	2750	Annual Growth 16.6%
2029E	5900+

Data Source: Zero Power Industrial Research Institute

ACGN Industry Market Distribution

	2016	2023
ACGN Content Market	72.0 %	53.9 %
ACGN Peripheral Derivative Market	28.0 %	46.1 %

Data Source: Zero Power Industrial Research Institute

According to public reports, China's general ACGN user base has grown substantially, reaching approximately 460 million by 2021. As ACGN culture continues to break through the "dimension wall," this large user base is still expanding. The younger demographic, particularly those aged 25 and under, is undoubtedly the main force driving ACGN culture. Data from MoonFox iMarketing indicates that these mobile internet users show a strong preference for ACGN communities and anime and manga-related apps. Additionally, the ACGN-related mobile internet industry exhibits a clear holiday effect. Monitoring data from MoonFox iApp reveals that both the anime and manga industry and ACGN community applications see a noticeable increase in active user numbers during the winter and summer holidays.

TGI (Target Group Index) of User Preferences of Mobile Internet Users Aged 25 and Under

Industry	TGI
ACGN Community	280
Couple Interaction	276
Higher Education	269
Anime & Manga	247
Image Sharing	244
Gaming Platform	231
Game Assistant	229
Card & Board Games	220
Music Games	216
Strategy & Puzzle	215

Data Source: MoonFox iMarketing, Data Cycle: October 2024

Changes in User Base for ACGN and ACGN Community Apps (Unit: 10,000)

Year/Month	Anime & Manga	ACGN Community
2024-01 (Winter Vacation)	3,893.48	350.53
2024-02 (Winter Vacation)	4,152.07	342.98
2024-03	3,651.66	354.12
2024-04	3,466.41	320.66
2024-05	3,345.23	298.43
2024-06	3,555.53	317.29
2024-07 (Summer Vacation)	4,006.55	338.06
2024-08 (Summer Vacation)	3,805.50	361.99
2024-09	3,062.02	288.87
2024-10	3,126.15	331.54

Data Source: MoonFox iApp, Data Cycle: January 2024 - November 2024

As the data indicates, ACGN culture is no longer confined to fringe groups; it is gradually becoming part of mainstream culture, particularly among the younger generation, where its influence is profound. "ACGN Merch," as a product of ACGN culture, have transcended mere entertainment consumption and emerged as a new medium for social interaction, acting as a form of "social currency" for youth. This shift is driven by a strong demand for personalization and community identity among young people. In their social circles, shared interests and hobbies serve as bonds connecting individuals, and "ACGN Merch"—whether in the form of anime character merchandise, in-game items, or related cultural symbols—become tools for self-expression and identity building. By sharing and exchanging these "ACGN Merch," young people create common cultural spaces and social networks, enhancing their connections and sense of belonging.

II. Expanding Scenarios: ACGN Continues to Step Deeper into the Real World

As ACGN culture continues to permeate various aspects of life, its commercial scenarios are expanding from the virtual realm into the real world. In recent years, ACGN retail brands have emerged rapidly, serving as a vital bridge between ACGN and mainstream culture. Numerous ACGN brand retail stores are experiencing significant growth, with KAYOU opening 318 locations. This expansion of ACGN retail outlets has also spurred the development of related industries, including anime exhibitions, themed cafes, and a range of online communities and offline gatherings. As a result, ACGN culture is constructing a diverse ecosystem that integrates various facets of entertainment and social interaction.

Number of ACGN Retail Stores

Brand	Number of Stores
KAYOU	318
IPSTAR	139
BOOM COMIC	58
GOODSLOVE	50
MarchMonster	37
Kyoko ACGN MerchStore	35
GUGUGUGU	34
Mancool	34
HEYZAKKA	25
Karasumaya	23

Data Source: Lei Newspaper, Data Cycle: November 2024

This ecosystem not only enriches consumer experiences but also presents new business opportunities for traditional physical enterprises. According to the State-owned Assets Supervision and Administration Commission of Shanghai, the Bailian ZX Creative Center—the first commercial complex in China focused on ACGN culture—transformed from the former Hua Lian Shopping Mall. It has successfully gathered major overseas ACGN retail and social cultural experiences. By the end of 2023, its sales reached RMB 300 million, with daily foot traffic increasing by 3 to 8 times post-transformation.

In addition to physical stores, IP marketing has become a crucial driver for ACGN culture's rapid integration into the mainstream. In recent years, many restaurant brands have begun targeting the ACGN market. Notable brands such as Pizza Hut, HEYTEA, and KFC have engaged in ACG IP marketing, collaborating with popular ACGN franchises like Naraka: Bladepoint, Light and Night, and Genshin Impact to release limited-edition products and events. These collaborations not only cater to the collection and experiential needs of ACGN fans but also generate buzz and enhance brand visibility, boosting the youthful appeal of these companies.

Partial Restaurant Brand Collaborations with ACGN IPs

Date	Brand	Co-branding IP
2024.01	Pizza Hut	Naraka: Bladepoint
2024.03	HEYTEA	Light and Night
2024.04	NAIXUE	Arknights
2024.04	ChaPanda	Honkai: Star Rail
2024.05	Auntea Jenny	Howl's Moving Castle
2024.05	ChaPanda	Tuntunzai
2024.05	YH.TANG	The King's Avatar
2024.07	KFC	Genshin Impact
2024.08	Luckin Coffee	Black Myth: Wukong

The commercial value of ACGN culture extends far beyond mere entertainment and consumption; it has evolved into a cultural phenomenon, societal trend, and even an economic model. The purchasing power and enthusiasm of the ACGN demographic are significant and should not be underestimated. In marketing strategies, leveraging ACGN culture provides brands with fresh perspectives and approaches. By collaborating with ACGN IPs, brands can forge deeper emotional connections with young consumers, enhancing brand awareness and loyalty through "ACGN Merch" and the "Fans Economy." These cross-industry collaborations not only drive innovation and diversification in marketing strategies but also enrich brand performance, ultimately propelling the prosperity of the ACGN economy.

• Our Information:

Website: https://www.moonfox.cn/
Contact number: 400-888-0936

• Contact us:

Name: Felix
Title: Director of Sales, Industry Insight Division
Tel: +86 -13366276383
Email:zhouzt@jiguang.cn
Address: 608/F, Tower B, Wintrust Center, No. 1 Xidawang Road, Chaoyang District, Beijing, China

Name: Janette Zhou
Title: Marketing Manager
Tel: +86-13928239332
Email: zhouxt@jiguang,cn
Address: 608/F, Tower B, Wintrust Center, No. 1 Xidawang Road, Chaoyang District, Beijing, China

View original content:https://www.prnewswire.com/news-releases/moonfox-analysis--acgn-merch-economy-surge-and-the-breakthrough-of-the-dimension-wall-in-acgn-consumption-302339259.html

SOURCE Aurora Mobile Ltd

FAQ

What is the projected market size for China's ACGN industry by 2029 according to JG's analysis?

According to Aurora Mobile (JG)'s analysis, China's ACGN industry is projected to exceed RMB 590 billion by 2029, more than doubling from its 2023 value.

How much has the ACGN peripheral derivative market share grown since 2016?

The ACGN peripheral derivative market share has grown from 28% in 2016 to 46.1% in 2023, showing an increase of 18.1 percentage points.

What is the current user base size for ACGN in China according to JG's report?

According to the report, China's general ACGN user base reached approximately 460 million users by 2021.

Which ACGN retail brand has the largest number of stores according to JG's analysis?

KAYOU leads the ACGN retail market with 318 store locations, followed by IPSTAR with 139 stores.

What is the expected growth rate of China's ACGN industry from 2023 to 2024?

The industry is expected to grow by 16.6% from RMB 221.9 billion in 2023 to RMB 275 billion in 2024.