Core Insights - The rise of emotional consumption is becoming a new growth driver in the economy, with trends like blind boxes, healing economy, AI companionship, and self-indulgent consumption gaining traction among Generation Z consumers [1] - The Cosplay economy, as part of the broader emotional economy, is emerging as a significant force, driven by a well-defined "dream-making industry chain" that includes costume customization, photography services, event activities, and IP derivatives [3][9] Market Overview - There are approximately 10 million Cosplay enthusiasts globally, with China being one of the largest markets for the subculture, projected to reach a market size of about 597.7 billion yuan in 2024 [3][9] - The user base for the broader subculture exceeds 500 million, with 85% of users being from Generation Z (ages 18-34) [3] Consumer Behavior - Over 70% of Cosplayers report that role-playing helps them relieve real-life stress, indicating a strong emotional connection to the practice [4] - The average annual spending on Cosplay per user is around $480, with total spending in 2023 reaching $4.8 billion [6][9] Industry Dynamics - The production model for Cosplay costumes has shifted from handmade to industrialized production, significantly increasing production speed and cost-effectiveness [9][11] - The market for Cosplay costumes is expected to grow from $4.75 billion in 2024 to $8.65 billion by 2029 [9] Competitive Landscape - The number of Cosplay costume shops has increased significantly, leading to intensified competition and a reduction in profit margins, with industry gross margins dropping from 50% five years ago to around 10% today [12] - The core consumer demographic remains concentrated among students aged 15-25, who have high expectations for product quality and aesthetics while being price-sensitive [12] Trends and Innovations - There is a notable shift in consumer preferences towards game-related IP products, which now account for 80% of sales in some companies, reflecting a growing interest in emotional value [13] - The industry is witnessing a diversification in design influenced by domestic cultural trends, moving beyond traditional Japanese styles to incorporate elements of Chinese culture [11] Professional Services - The rise of specialized roles such as makeup artists, photographers, and prop makers has lowered the entry barrier for new participants in the Cosplay community, making it more mainstream [14] - The demand for high-quality wigs and makeup products is increasing, with consumers seeking more personalized and diverse options [24][31] Challenges - The industry faces challenges such as price wars and a lack of standardized practices, leading to concerns over quality and consumer trust [12][24] - The proliferation of low-cost service providers has created a competitive environment that may compromise service quality and professional standards [23][43]

Group 1 - The core phenomenon of "breaking the wall" in the ACG culture indicates that the subculture of Cosplay has grown into a mainstream cultural trend with significant growth potential, evidenced by approximately 10 million Cosplay enthusiasts globally and a spending of $4.8 billion in 2023, averaging $480 per user annually [1] Group 2 - The Cosplay commercial ecosystem is driven by IP, with upstream content creation from ACG, midstream productization including costumes and accessories, and downstream consumer engagement primarily from the 18-30 age demographic, who are increasingly turning their hobby into a profession [2][3] Group 3 - The global market for Cosplay costumes is projected to grow from $4.75 billion in 2024 to $8.65 billion by 2029, with a production model that favors semi-customization due to the complexity of character designs [4][5] Group 4 - The market for beauty contact lenses and wigs, while smaller than costumes, shows a trend towards refined consumption, with significant user loyalty and a growing market share for domestic brands [6][7][8] Group 5 - Brands have opportunities to penetrate the Cosplay market through IP collaborations and by embedding themselves in cultural scenes, focusing on the expressive motivations of consumers rather than just product needs [10][11]