What’s happening with animation? In short: It’s evolving.
The year 2025 showcased a blend of theatrical blockbusters and streaming must-see releases. Studios leaned into familiar franchises and book adaptations, while streamers offered fresh storylines. Streaming platforms, especially Netflix, dominated global viewership, turning certain animated titles into overnight phenomena — “KPop Demon Hunters,” in particular. Meanwhile, theatrical releases proved audiences still flock to the big-screen when stories and characters return, as seen with the success of “Zootopia 2.”
With that being said, the animation industry had a unique year. While audience demand for animated films remains strong, major studios have scaled back production, resulting in fewer theatrical releases — particularly family-friendly titles.
According to a 2024 article by Screen International, the U.S. animation sector is facing “hefty challenges” this year, with decreased staffing and shifting studio priorities reshaping the landscape. Disney, for example, announced layoffs across its film and TV divisions in 2025, according to Variety.
At the same time, a market analysis from Precedence Research highlighted that increases in production costs are limiting the number of new animated features studios are willing to greenlight, even as the global animation market continues to grow.
As a result, a small number of family-friendly animated films have emerged this year, making every successful release — from theatrical hits like “Zootopia 2″ to streaming hits like “KPop Demon Hunters” — stand out.
Below are the top animated movies of 2025, selected for their box office performance or streaming numbers, along with audience ratings on Rotten Tomatoes and IMDb.
‘Zootopia 2′
Rated: PG
Where to watch: In theaters
The unusual partnership of a fox and bunny once again drew audiences to the theaters in herds, and the duo isn’t done yet. After only a few weeks in release, “Zootopia 2″ raked in nearly $916 million globally, and continues its theatrical run. It currently ranks fourth among all global-box office performers of 2025, just behind “The Minecraft Movie,” and is the only animated film to break into the top ten, according to Box Office Mojo.
Directed by and produced by Walt Disney Animation Studios, “Zootopia 2″ features returning voice actors Ginnifer Goodwin (Judy Hopps) and Jason Bateman (Nick Wilde), alongside the voices of Macaulay Culkin, Shakira, Ke Huy Quan and Quinta Brunson. The film earned two Golden Globe nominations: best motion picture — animated and outstanding cinematic and box office achievement, as previously reported by Deseret News.
Ratings: 91% on RottenTomatoes; 7.7/10 on IMDb
‘KPop Demon Hunters’
Rated: PG
Where to watch: Netflix
Netflix’s “Kpop Demon Hunters” became an overnight sensation and now stands as the number one English-language movie in Netflix history. The demon-slaying K-pop group amassed 325.1 million views and 541.8 million streaming hours, according to the streamer.
The film was written by Danya Jimenez, Hannah McMechan and Maggie Kang and was directed by Chris Appelhans and Maggie Kang. It features the voices of Arden Cho, May Hong and Ji-young Yoo.
Reviewers highlighted its vibrant animation, catchy soundtrack and fresh fusion of pop culture and fantasy. Fans quickly embraced the characters who inspired Halloween costumes and new balloons to the long-running Macy’s Thanksgiving Day Parade.
The film was nominated for three Golden Globe Awards, including best motion picture — animated, outstanding cinematic and box office achievement and best original song, as reported by Deseret News.
Ratings: 96% on RottenTomatoes; 7.5/10 IMDb.
‘The Bad Guys 2′
Rated: PG
Where to watch: Peacock, Amazon Prime Video (with add-on)
The misfit gang of lovable crooks brought in $145 million globally, modest compared to top performers but strong enough to place the film at 19th in the worldwide box office for 2025, making it the next-highest-ranked animated film after “Zootopia 2.”
“The Bad Guys 2″ was filled with adventure, clever heists and plenty of chaos to keep audiences entertained.
The sequel was directed by Pierre Perifel and JP Sans and produced by DreamWorks Animation.
Ratings: 87% on RottenTomatoes; 7/10 IMDb.
‘Dog Man’
Rated: PG
Where to watch: Netflix
Part dog, part man, all hero — “Dog Man,” based on Dav Pilkey’s bestselling graphic novels, drew families in with its blend of slapstick humor and heroic heart. The film placed 28th in the global box office for the year, earning $145.6 million during its theatrical run.
Reviews: 82% Rotten Tomatoes; 6.3/10 IMDb
‘In Your Dreams’
Rated: PG
Where to watch: Netflix
Audiences step into a world where imagination knows no bounds. “In Your Dreams” invites viewers on a dream-filled journey. Since its Netflix debut on Nov. 14, it has spent three weeks in Netflix’s Global Top 10 movie list, currently sitting at No. 4, just behind “KPop Demon Hunters.”
Produced by Kuku Studios, the film is directed by studio co-founder Alex Woo in his directorial debut, per Netflix.
Reviews: 85% RottenTomatoes; 6.5/10 IMDb
‘Elio’
Rated: PG
Where to watch: Disney+
An ordinary kid on an extraordinary cosmic adventure, “Elio” wasn’t off to such a hot start in the box office. But it gained momentum, ultimately earning $125.3 million globally and placing 24th for the year — just behind “The Bad Guys 2″ among animated releases.
“Elio” was directed by Adrian Molina, Madeline Sharafian and Domee Shi, starring the voices of Yonas Kibreab and Zoe Saldaña.
Reviews: 83% RottenTomatoes; 6.7/10 IMDb
Note: “The SpongeBob Movie: Search for SquarePants” was released Dec. 19.