Ne Zha 2: The Underdog that Beats Animation Industry Giants

If you're an animation movie lover, you've probably noticed that most blockbuster animated films come from just a handful of major studios. Hollywood giants like Disney, DreamWorks, and Pixar, along with Japan’s legendary Studio Ghibli, have consistently delivered some of the most beloved and commercially successful animated films.

However, an unexpected outlier has shaken up the animation industry, defying all odds to claim the top spot. Ne Zha 2 from Chengdu Coco Cartoon studio has emerged as the highest-grossing animated film of all time, surpassing blockbuster hits like Inside Out 2, Frozen II, and The Super Mario Bros. Movie. Not only has it dominated globally, but it has also set a new record in China, becoming the most-watched animation film in the country’s box office history with over 160M admissions.

Source: Mouyan Pro (2025), Box Office Mojo (2025)

What makes Ne Zha 2 even more impressive is its humble origins. Produced by a relatively small studio in China with a budget of just USD 80M, it has defied expectations and outperformed some of the biggest animated films from renowned studios. For comparison, Inside Out 2 had a staggering USD 200M budget, Frozen II cost USD 150M, and The Super Mario Bros. Movie was made for USD 100M.

What are the key factors behind Ne Zha 2's success against major production studios' animated films?

The director of Ne Zha 2, Yang Yu, played it smart by leveraging a well-known character with a built-in fan base rather than taking the risk of introducing an entirely original story. Ne Zha, a legendary deity from Buddhist tradition, is one of the most iconic figures in Chinese mythology. By tapping into this cultural familiarity and nostalgia, the film instantly resonated with audiences.

Ne Zha 2 strategically leverages shared universe storytelling, a strategy that has fueled the success of franchises like Spider-Man and The Avengers. As part of the Fengshen Universe—a cinematic world based on Chinese mythology—it benefits from the established fanbase of previous films like Ne Zha (2019) and Jiang Ziya (2020), both inspired by the classic novel Investiture of the Gods. By expanding on a familiar storyline within a larger interconnected world, Ne Zha 2 keeps audiences engaged while drawing in fans of past films, further amplifying its success.

Chengdu Coco Cartoon pushed the boundaries of animation with Ne Zha 2, utilizing cutting-edge technology and a highly skilled special effects team to bring the film to life. Over five years of meticulous production, more than 4,000 animators worked tirelessly on 1,948 special effects shots, delivering breathtaking visuals and seamless animation.

Lastly, Ne Zha 2 succeeds in creating a film that resonates across generations. While older viewers (50+) appreciate its strong cultural themes and moral clarity, many would prefer a live-action adaptation. The 20-49 age group admires its stunning visuals, dynamic cinematography, and expressive animation, though some find the plot predictable. Meanwhile, younger audiences (< 20) are captivated by its high-quality animation and action-packed scenes, despite feeling the historical themes are less engaging and the voice acting could be improved.

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