Editor's note: The global movie market is gradually recovering from the upheaval caused by the COVID-19 pandemic. Amid this recovery, domestic movies in China have performed exceptionally well, consistently featuring in the global top 10 box office and dominating the national top 10 box office rankings in 2023. Which cities are driving China's box office market? Which city loves movies the most? Cloud River Urban Research Institute provides a detailed analysis using the "Index of Chinese Cities' Cinema Spending" from the China Integrated City Index.

1. Global movie market recovers from COVID-19 pandemic

In 2023, the global box office grossed approximately $33.9 billion, marking a 30.8% increase from $25.9 billion in 2022, showcasing a robust recovery. However, it still lags behind the pre-pandemic level of $42.5 billion in 2019.

From 2020 to 2023, the global movie market suffered greatly due to the COVID-19 pandemic. In 2020, global annual box office revenues plummeted by 71% compared to 2019, dropping to just $12.4 billion. That year, thanks to swift pandemic control, China surpassed North America, including the U.S. and Canada, for the first time with $3.12 billion in box office revenue, becoming the largest movie market in the world.

In 2021, the global box office rebounded by 72% year on year to $21.3 billion, recovering to 50% of the 2019 level. In the same year, China, with the best pandemic control globally, saw its movie market reach $7.44 billion, 1.6 times larger than North America, retaining the top spot globally.

In 2022, the global box office climbed to about $25.9 billion, a 22% increase from 2021. North America reclaimed its position as the largest box office market with $7.37 billion. In contrast, China's box office market fell by 41.7% year on year to $4.33 billion, dropping to second place globally.

By 2023, the movie markets in North America and China had significantly outpaced those in other countries, forming a clear lead. North America, the global leader, reached $9.07 billion in box office revenue, roughly four times its 2020 low. China, in second place, restored its box office to $7.71 billion, while Japan, in third, reached only 16% of North America's and 19% of China’s box office revenue.

2. Two domestic movies among top 10 of global box office 

In the 2023 global box office top 10 ranking, Chinese movies "Full River Red" and "The Wandering Earth II" ranked seventh and eighth, respectively, with box office revenues of $670 million and $610 million. The other eight movies were American productions.

Since Wu Jing's "Wolf Warrior II" grossed $800 million in 2017, ranking ninth globally, Chinese movies have increasingly drawn attention for their box office values. In 2020, four Chinese movies made it into the global top 10, with "The Eight Hundred" becoming the highest-grossing movie worldwide. In 2021, "The Battle at Lake Changjin," "Hi, Mom," and "Detective Chinatown Ⅲ" secured the second, third, and sixth spots in the global rankings. In 2022, "The Battle at Lake Changjin II" and "Moon Man" were ninth and 10th in global box office revenues. Chinese movies regularly challenge for the global top 10, forming a competitive duo with Hollywood in terms of box office.

According to Zhou Muzhi, a professor at Tokyo Keizai University, "The vast Chinese market has elevated domestic movies into the global top tier. A major future challenge for Chinese movies that rely heavily on the local market will be how to conquer international markets."

3. Domestic productions dominate list of 10 highest-grossing movies in China

In 2023, the Chinese movie market staged a strong rally, growing 83.3% compared to the previous year and reaching a four-year peak. In the year, 73 movies raked in over 100 million yuan ($13.77 million) each, 50 of which were domestic productions.

Notably, domestic movies dominated the top 10 list of the highest-grossing movies in 2023. They were "Full River Red," "The Wandering Earth II," "No More Bets," "Lost in the Stars," "Creation of the Gods I: Kingdom of Storms," "Never Say Never," "Chang'an," "Boonie Bears: Guardian Code," "Under the Light," and "Godspeed," all of which grossed over 1 billion yuan.

In contrast, Hollywood movies were losing their luster in the Chinese market. Only three Hollywood movies made their way into the top 20 — "Fast & Furious 10" at 12th, "Meg 2: The Trench" at 17th, and "Avatar: The Way of Water" at 20th. 

Domestic movies accounted for 83.8% of the total box office revenue in 2023, while imported movies only accounted for 16.2%.

Zhou said, "These figures show that domestic movies are gaining popularity, while the appeal of Hollywood movies in China is significantly declining."

He pointed out that this reflects the improvement in the quality of Chinese movies on one hand, and on the other hand, it is the result of Hollywood blockbusters' growing departure from life and reality in recent years.

4. China’s box office is highly concentrated 

Cloud River Urban Research Institute annually releases the "Index of Chinese Cities' Cinema Spending" for 297 Chinese cities at prefecture level and above, drawing on its annual China Integrated City Index.

According to the "2023 Index of Chinese Cities' Cinema Spending," the top 10 cities are Shanghai, Beijing, Chengdu, Shenzhen, Guangzhou, Chongqing, Hangzhou, Wuhan, Suzhou, and Xi'an.

At 11th to 30th places are Nanjing, Changsha, Zhengzhou, Tianjin, Foshan, Dongguan, Ningbo, Hefei, Wuxi, Qingdao, Shenyang, Kunming, Nantong, Nanchang, Wenzhou, Shijiazhuang, Jinan, Fuzhou, Changchun, and Nanning.

An analysis of the index reveals a high concentration of China's box office in these top 30 cities. Here are some key findings:

Number of cinemas: The top 10 cities in the index account for 20.6% of the total number of cinemas nationwide, while the top 30 cities represent 38.9%. This means the top 10 cities host one-fifth of China’s cinemas, and the top 30 cities nearly 40%.

Comparing to pre-pandemic levels in 2019, 223 of 297 prefecture-level and above cities have increased their number of cinemas, 44 have decreased, and 30 have stayed the same. 

China saw a net increase of 1,394 cinemas over the past four years, despite pandemic headwinds. Chengdu saw the largest increase with 67 new cinemas, followed by Suzhou with 28. Shanghai, which saw a decrease of 12 cinemas, experienced the largest decline in cinema numbers.

Cinema attendance: The top 10 cities in terms of cinema attendance account for 28% of the national total, and the top 30 cities account for 49.8%. Thus, the top 10 cities attract nearly one-third of the national audience, and the top 30 cities nearly half.

Box office: The top 10 cities in terms of box office represent 30.1% of the national total, and the top 30 cities represent over 51%. This indicates the top 10 cities contribute nearly one-third of China’s box office earnings, and the top 30 cities contribute more than half.

5. Which Chinese city tops box office?

The index offers some insight into the dynamics of Chinese cities’ cinema spending. 

The top 10 cities in terms of box office are Shanghai, Beijing, Shenzhen, Guangzhou, Chengdu, Chongqing, Hangzhou, Wuhan, Suzhou, and Xi'an.

The top 10 cities in terms of cinema attendance are Shanghai, Beijing, Chengdu, Shenzhen, Guangzhou, Chongqing, Wuhan, Hangzhou, Suzhou, and Xi'an.

The top 10 cities in terms of average cinema attendance per capita are Nanjing, Beijing, Zhuhai, Hangzhou, Wuhan, Shanghai, Shenzhen, Guangzhou, Chengdu, and Haikou.

The top 10 cities in terms of average box office per capita are Beijing, Shanghai, Hangzhou, Shenzhen, Nanjing, Zhuhai, Guangzhou, Wuhan, Xiamen, and Suzhou.

Zhou, also head of Cloud River Urban Research Institute commented, "China's box office is mainly concentrated in core cities and cities with developed industries such as Suzhou, Zhuhai, Dongguan, Foshan, and Wuxi. These cities share characteristics — they all have a large population, a strong economy, and a high proportion of young people."

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