China’s microdrama industry is maturing via improved storytelling, AI-powered production, and rising brand investment. The format is transforming from low-cost entertainment into one of the country’s most compelling new marketing channels.

Nearly a third of internet users in China watch microdramas, but growth is slowing

The number of microdrama viewers in China will grow from 354.1 million in 2026 to 400.9 million in 2030, when it will account for 35.9% of internet users. At the same time, growth will decelerate from 4.4% to 2.5%.

As user acquisition slows, the industry is moving from low-budget, formulaic productions to higher-quality content and more diverse themes. And regulators are encouraging more sophisticated storytelling. This has prompted producers to invest in stronger scripts, higher production values, and a broader range of genres. Several recent hits (e.g., “Home and Away,” “Summer Fendera,” and “Vermilion Bird Hall”) have demonstrated audience eagerness for higher-quality content.