As every year, the European Audiovisual Observatory (EAO) has been present at the Marché du Film to share its data on the industry situation in Europe and worldwide. The presentation “FOCUS 2026: Key Trends in the Film Sector” featured deputy head of the Department for Market Information Martin Kanzler, and film analysts Nicolas Edmery and Elisa Joliveau-Brene. As a representative of Japan, this year's Country of Honour at Cannes, Naohiro Kaji, director of the Culture and Creative Industries Division at the Japanese Ministry of Economy, Trade and Industry, also took part.

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Edmery opened the discussion by sharing data concerning market results in the past year. The general takeaway is that world box-office figures have been shrinking since the pre-COVID period. They reduced by 28% to reach 5 billion admissions in 2025, but at the same time, they grew by 3% compared to 2024. The world's admissions growth was driven by Asia (mainly China), while Europe decreased by 5% compared to 2024. Another element to be noted is the shrinking of US films, which lost around 40 million admissions in Europe this year. “On the other hand, when looking at recovery rates, meaning how much the world recovered from the pandemic in 2025, they average at between 60% and 70%, with the Middle East showing striking numbers that surpass the pre-COVID period,” the film analyst stated. In terms of screen density, meaning the number of screens per 100 inhabitants, the USA and France are still the leading nations, while India, Indonesia and Brazil are at a lower level than the average.

Despite the overall decrease mentioned above, US films remain dominant in Europe. Nonetheless, European movies were also able to secure a significant market share – still one of the highest levels seen in Europe in recent years. This was largely driven by national films gaining strong traction in their domestic markets. This becomes particularly clear when looking at the overall European box office by film nationality. US productions dominated the charts: 16 of the top 20 titles were US franchises, while 19 in total were US or US-financed films, with the only exception being Paddington in Peru, which managed to break into the upper echelons.

The picture changes somewhat when focusing exclusively on European films. Traditionally, French and British productions dominate these charts, but this year, the landscape was more diverse, with German, Polish, Turkish and Italian flicks also among the top ranks. “Most of them were local breakout hits, meaning films that generated the majority of their admissions in their domestic markets – for example, Buen Camino, Manitou’s Canoe or Home Sweet Home – but there were, however, a few notable exceptions that managed to attract audiences beyond their home countries. Among them we find the aforementioned Paddington in Peru, but also Pablo Larraín’s Maria and Flow,” Edmery stated.

Compared with the other countries and regions examined, Japan stood out because it was overwhelmingly Japanese films that found audiences domestically. US productions accounted for only 20% of admissions, a very low share compared with most other markets worldwide.

Elisa Joliveau-Breney then introduced the data on global film production and its evolution. Production, largely driven by Asia and Europe, recovered quickly and has now returned to pre-pandemic levels: “We estimate that around 7,700 films were produced worldwide in 2025, including roughly 2,500 European productions.” Asia accounted for 40% of movies produced globally in 2025, while Europe represented 35% of worldwide production. This creates an interesting contrast: although European pictures accounted for only 10% of global admissions, they represented 35% of global production output. This means that Europe, for example, is producing more films than it did during the pre-pandemic period, even though admissions remain 25% lower compared to the same period.

While worldwide production levels are now broadly similar to those seen before the pandemic, there are significant regional differences. Production in the USA and Canada dropped to about 72% of pre-pandemic levels. This is particularly notable given that US films still represent 52% of worldwide admissions: “If the number of US productions continues to decline, it could have major implications for global box-office admissions in the future,” the analyst admitted.

Joliveau-Breney explained: “If we take a closer look at Europe, we see that much of the growth in admissions was driven by Spain. Spain also maintained relatively stable production levels and became the region’s leading production country in 2025, with more than 420 films produced.” Comparing the top European production countries with the world’s leading producers, Japan ranked second globally, with nearly 700 films staged. In comparison, Europe produced around 2,500 films overall, while Japan alone – as a single country – produced the aforementioned figure of nearly 700. Another distinctive feature of the European film industry is the prevalence of co-productions, which account for an average of 23% of European film productions. In Japan, by contrast, co-productions represented only 3% of national films released in 2025.

Most films produced in Europe, to the tune of 96%, have a budget of under €10 million, and on average, their budgets are around €2.2 million. In this regard, Naohiro Kaji commented on the difference between this and the financing in his country: “I am surprised to hear that European financing is roughly 50% public. The norm in Japan is private investments.”

Finally, Kanzler outlined how the three main tools that support European productions are still investment obligations for streamers and broadcasters, production incentives like tax rebates, and direct public funding.