As Global Box Office Sluggishly Recovers, Asia Leads While Independent Cinemas Stand to Benefit From Changing Trends, CNC Study Finds

In the three years since the end of the COVID pandemic, cinema exhibition around the world continues to feel the impact, with a slower than expected recovery exacerbated by unpredictability in the market, the industry downturn and shifting audience tastes, according to a new study published by France’s National Center of Cinema (CNC).

While Asia leads in global box office, the volatility in the market is creating opportunities, particularly for independent cinemas that cater to the increasingly diverse tastes of audiences.

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Changing audience behavior has resulted in moviegoers becoming more selective, the study finds, stating: “Hollywood no longer reigns supreme and a market’s vitality now depends on the success of local films.”

Indeed, “monoculture is dead,” it adds, stressing that there is now an opportunity for local film industries. With the increasing scarcity and/or declining appeal of American blockbusters, “the hegemony of Hollywood is being eroded in favor of rising regional powers.”

Diversity, the study notes, “is becoming key to attracting audiences, a phenomenon which streaming has contributed to: it has accustomed audiences to watching local or subtitled works. This is “an opportunity for local film industries and the expression of a new soft power.”

In view of this development, exhibitors are gaining better control of marketing and film selection. Independent cinemas have a head start in this regard.

“In a market dominated by chains, independent and arthouse cinemas had to redouble their efforts to stand out from the crowd and build audience loyalty,” the report states. Independent cinemas have the advantage of focusing on proximity, commitment and passion for cinema while also being more affordable.

Savvy cinema operators are launching multiple initiatives, such as Q&A sessions with film teams, school screenings, festivals and loyalty cards. By repositioning cinemas as social hubs with more to do than simply watching films, they are strengthening their relevance and their power to entertain and educate.  

The study, presented at the Cannes Film Festival and carried out for CNC by marketing and research firms Cine Group, Hexacom and Omdia, examined 14 key markets, looking at things like cinema exhibition characteristics; trends; current challenges and opportunities; the habits of cinema-going audiences, including competition from streaming platforms and social media; and the richness and diversity of film offerings as well as the role of domestic and arthouse cinema.  

Looking at the global box office, revenue in 2025 was still far below pre-crisis levels.

Rather than returning to normality, the global box office in 2025 was down 19% on the 2017-2019 average, at $33.6 billion (compared to pre-crisis revenue of between $40 billion and up to $42.3 billion in 2019). According to initial forecasts, the global box office should reach $34.7 billion in 2026, down 16% versus 2017-2019.

“This new situation has had a major impact on the economic health of players in the sector, particularly cinema exhibitors,” the report states.

Exhibitors were already weakened by the COVID lockdowns and their situation was exacerbated by the expansion of international SVoD services and social media prompted by the crisis, which in turn has had a lasting impact on public habits and consumption patterns.

Asia currently leads the global box office. In 2025, Chinese animated hit “Ne Zha 2” was the No. 1 film at the global box office, generating more than 95% of its sales domestically, marking the first time that a film grossed more than $1 billion in a single market.

Overall, the Asia-Pacific region accounted for 42% of global revenues, with 22% of the total coming from China.

The U.S., meanwhile, saw its share of the global box office dip from 62.2% in 2019 to 54.1% in 2025, as per Omdia data. Europe likewise experienced a decline, from 28% in 2019 to 24% last year.

While many other countries are growing or returning to pre-pandemic levels, box-office trends vary greatly from one market to another, according to the study.

Saudi Arabia, whose current theatrical market dates back to just 2018 following a 35-year ban, has, not surprisingly, seen exceptional growth: an increase of 280% in 2025 versus pre-crisis levels.

Vietnam and Indonesia, both still seen as “emerging markets,” likewise posted strong increases in box office revenue last year compared to the 2017-2019 average: Vietnam rose 70%, while Indonesia was up 27%. Japan, meanwhile, saw a 16% increase.

In Europe, Poland was the only market that saw growth, albeit just 2%.  

Conversely, the U.S. and the U.K. both saw box office revenue drop 22% last year. The declines were worse in South Korea and South Africa, which saw revenue plummet by 43% and more than 50%, respectively.

While five countries recorded increases in box office between 2017-2019 and 2025, only three of them saw rises in admission: Saudi Arabia with 439%, Vietnam, plus 48% and Japan, up 5%.

The U.S., Mexico and Brazil are among a number of countries that saw very sharp falls in admissions, with negative figures of 40%, 42% and 35%, respectively. South Africa saw a 73% decline in admissions, while South Korea was down 52%.

Despite declining admissions, higher ticket prices have offset the fall in attendance numbers, the study points out.