Core Insights - The success of "Luo Luo Mountain Little Monster" with a box office of 1.3 billion RMB highlights the potential audience for domestic animation, ranking it as the fourth highest-grossing domestic film of 2025 [1] - Despite the apparent prosperity of the domestic animation industry, there is a significant imbalance between the number of 2D and 3D animated films, with only four notable 2D films released since "The Monkey King: Havoc in Heaven" [1][2] - The shift in educational focus towards 3D animation has created a talent gap in 2D animation, leading to a lack of skilled professionals in this area [2][4] Industry Overview - The domestic animation market has seen over a hundred animated films released, but the majority are 3D, with 2D animation facing a creative crisis [1][2] - The recruitment market for 2D animation talent has diminished, as companies prefer to integrate 2D tasks into 3D workflows, reducing the need for dedicated 2D positions [2][4] - The lack of projects requiring traditional 2D animation has led to a decline in job opportunities for pure hand-drawn animation roles [2][4] Educational Challenges - Educational institutions have shifted their curricula to focus on 3D animation, resulting in graduates who are less familiar with 2D techniques [4][6] - There is a significant absence of a structured system for passing down 2D animation skills, making it difficult for new creators to learn from experienced professionals [6] Market Dynamics - The influence of Japanese animation has led many domestic 2D projects to mimic its style, diluting the unique identity of Chinese 2D animation and reducing its market competitiveness [7] - While 3D animation is often seen as more cost-effective, 2D animation offers greater potential for stylistic differentiation and cultural expression [8][12] Production Efficiency - The production process for 2D animation in Japan is highly organized, allowing for lower costs and higher output compared to the fragmented approach in China [12][14] - The perception that 2D animation is expensive stems from inefficiencies in the domestic production system, rather than the inherent costs of the medium itself [12][14] Future Prospects - There is potential for the domestic 2D animation industry to improve by adopting the structured, standardized practices seen in Japanese animation, which could lead to a balance of cost control and artistic quality [14]