China's Short Drama Market Explodes, Production Costs Plummet
China’s short-drama boom is set to hit US$14B by 2027. CMOs get a fast, repeatable way to test branded content at scale.
China's short-drama industry is on track to reach RMB 100 billion (~US$14 billion) by 2027, up from RMB 37.4 billion (~US$5.2 billion) in 2023. The wild growth comes as new production methods and studio ecosystems drive costs down by as much as 60%, making the format increasingly attractive for brand partnerships.
The market hit RMB 63.4 billion (~US$8.7 billion) by mid-2025, with over 662 million Chinese viewers consuming these 60 to 90-second episodic dramas. That audience now exceeds the entire population of the European Union.
Hengdian World Studios has emerged as the epicenter of short-drama production, enabling significantly lower production costs compared to overseas projects. The studio ecosystem produced 36,400 short dramas in 2024, a dramatic increase from just 336 in 2022.
"The Hengdian ecosystem lets us produce 100 episodes in 10 days, impossible in traditional film," said Ben Chien of AnyMind Group at IAB Hong Kong's C25 event.
New production tech has further reduced costs. John Wang of Shenzhen Youyuanren Cultural and Technological Co. noted that modern tools make previously expensive genres like fantasy and science fiction now economically viable.
The cost reductions have triggered a production surge. More than 40,000 new series were launched in 2025, with 5,000 to 8,000 series produced annually.
Short dramas are moving beyond China's borders with increasing success. Light X, TikTok's leading partner in the format, reported a 67% increase in European productions and a 77% rise in translated dramas in 2023.
Leighton Cosseboom
The company's drama "My Cold-Blooded Alpha King" generated US$10 million in US revenue and 30 million downloads, demonstrating the global appeal of Chinese intellectual property. Overall, overseas markets delivered 270 million downloads and RMB 2.4 billion (~US$330 million) in revenue during the first quarter of 2025.
North America led overseas consumption on TikTok in 2023, while Asia-Pacific markets are rapidly growing. Light X increased US productions by 19% during the same period.
The format presents new opportunities for brand integration. "Micro Short Drama + Brand" co-creation initiatives increased product placement effectiveness by 40% in China. BMW has already commissioned tailored series, according to Light X executive producer Heidi Liu.
Platforms Douyin and Kuaishou drive more than 70% of short-drama engagement in China through integrated content and commerce features. These platforms enable direct purchasing within the viewing experience, blending entertainment with transactions.
The audience demographics are particularly valuable. 37.3% of viewers are aged 40 to 59, a key paying demographic with 30% engaging daily.
However, challenges remain. Regulators removed more than 25,000 micro-dramas between 2022 and 2023 for compliance issues, emphasizing the need for quality control. Southeast Asian markets show promise but face monetization hurdles, with per-user revenue running 50% lower than in China despite similar mobile adoption rates.
For marketing leaders, the rapid market expansion and lower production costs create opportunities for testing branded content at scale. The format's low-cost, high-speed production model allows brands to experiment with multiple creative approaches across markets quickly.
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