'Nezha 2' surpasses 'Inside Out 2' as highest-grossing animated film

Chinese blockbuster Nezha 2 overtakes Pixar’s Inside Out 2 with $1.69 billion in global box office earnings.

People stand near a giant screen displaying a trailer for the Chinese movie "Nezha 2" at a cinema in Beijing, China, on February 6, 2025. Photo by Florence Lo/Reuters

By Sarah Oktaviany and Alana Salsabila

The Chinese animated blockbuster Nezha 2 has officially surpassed Pixar's Inside Out 2, becoming the highest-grossing animated film globally. According to data from the ticketing platform Maoyan, Nezha 2 has amassed a staggering 12.3 billion yuan ($1.69 billion) in box office revenue, including pre-sales and overseas earnings. This achievement not only cements the film’s place in cinematic history but also makes it the eighth highest-grossing film of all time.

A historic box office milestone

The overwhelming majority of Nezha 2’s box office earnings—more than 99%—have come from mainland China. This contrasts sharply with Hollywood animated films, which typically rely on global distribution for their success. While Pixar’s Inside Out 2 performed strongly worldwide, it could not keep pace with the unprecedented domestic demand for Nezha 2, which continues to break records within the Chinese market.

Industry analysts credit the film’s success to a combination of factors, including strong cultural resonance, high-quality animation, and its release during the lucrative Lunar New Year holiday season. China’s animation industry has seen rapid growth in recent years, and Nezha 2 is a testament to the country’s ability to compete with Hollywood’s biggest studios.

Sequel to a beloved animated classic

Nezha 2 is a sequel to the 2019 animated hit Nezha, which also achieved box office success and was praised for its unique storytelling and stunning visuals. The films are based on The Investiture of the Gods, a 16th-century Chinese novel that tells the story of Nezha, a mythical hero with magical powers who fights to protect the fortress town of Chentangguan.

The story of Nezha has been a staple of Chinese folklore for centuries, but Nezha 2 brings a modernized interpretation to the big screen, appealing to both younger audiences and older fans familiar with the classic tale.

Directed by rising star Yang Yu

The film was directed by Yang Yu, also known as Jiaozi, a filmmaker from China’s Sichuan province. His work on Nezha and its sequel has propelled him to the forefront of China’s animation industry, solidifying his reputation as one of the country’s most talented directors.

With Nezha 2, Jiaozi has further refined his storytelling and visual style, blending traditional Chinese elements with cutting-edge animation techniques. The result is a visually stunning and emotionally resonant film that has captivated audiences across China.

Driving record-breaking Lunar New Year box office

The release of Nezha 2 played a major role in pushing China’s 2025 Lunar New Year box office to an all-time high. The holiday period is traditionally the most profitable season for Chinese cinemas, with families flocking to theaters to watch new releases.

Industry experts note that Nezha 2’s dominance reflects a shift in the global animation landscape, with Chinese productions gaining more influence and competing directly with Hollywood blockbusters. While past Chinese animated films have struggled to achieve widespread international recognition, Nezha 2’s monumental success could pave the way for more homegrown productions to reach a global audience.

A challenge to Hollywood's animation dominance

The rise of Nezha 2 signals a growing challenge to Hollywood’s long-standing dominance in animated filmmaking. While major studios like Disney and Pixar have traditionally led the industry, China’s ability to produce record-breaking animated films demonstrates the country’s expanding cultural and cinematic influence.

Despite its massive success in China, Nezha 2 has not yet been widely released in international markets. However, if the film follows in the footsteps of its predecessor, which was distributed in select foreign markets, it could further bolster China’s position as a powerhouse in animation.

What’s next for Nezha and Chinese animation?

Given the overwhelming success of Nezha 2, industry insiders speculate that a third installment could be in development. While no official announcements have been made, the film’s strong box office performance and enthusiastic audience reception suggest that the Nezha franchise could continue to expand.

Meanwhile, China’s animation industry is expected to build on this momentum, with more high-quality productions entering the market. As Chinese studios continue to invest in animation technology and storytelling, audiences worldwide may see more blockbusters emerge from the country’s growing film industry.

For now, Nezha 2 stands as a landmark achievement, not only for Chinese animation but for global cinema as a whole. Its ability to surpass a Pixar film at the box office underscores the shifting dynamics in the animation industry, signaling a new era where Chinese productions can compete on the world stage.