Exploring the Expanding Vtuber Market Trends and Services in Japan

The rise of Virtual YouTubers, commonly known as Vtubers, has been nothing short of remarkable in recent years. A report by Coconala, a leading skill marketplace in Japan, reveals that the transaction volume related to Vtuber services has surged by approximately 4.2 times compared to five years ago. As a result, Coconala has introduced its first-ever Trend Report focused on Vtubers, examining categories such as character design, modeling, and streaming environment setup.

What is a Vtuber?

Vtubers are content creators who utilize 2D or 3D avatars to produce videos and live broadcasts. This virtual approach allows them to engage with the audience without revealing their physical identities. Vtubers are increasingly being embraced by businesses and local governments as promotional characters, while individual creators use the platform to enjoy gaming, streaming, and interacting with viewers. The COVID-19 pandemic has accelerated this trend, expanding the market significantly.

Forecasts suggest that by 2023, the Vtuber market size in Japan will reach ¥80 billion ($800 million), marking a 153.8% increase from the previous year. Moreover, projections estimate that by 2025, the market could grow further to approximately ¥126 billion ($1.26 billion).

User Engagement and Service Growth

Coconala's analysis reveals a staggering increase in both the transaction numbers and user purchases related to Vtuber services. As of April 2025, the data shows that these figures have risen to about 2.1 times compared to April 2020. This significant growth can be attributed to the rising popularity of user-generated content, including streaming and singing, as well as the expanding use of Vtubers in educational and promotional activities by local governments and educational institutions.

With user engagement on the rise, the total transaction volume has also increased roughly 4.2 times in the same period. This shift indicates a growing trend where clients are not only purchasing Vtuber production services but also seeking associated services for communication and information sharing, effectively widening Coconala's service offerings.

Coconala's Vtuber Services

Coconala offers a comprehensive suite of services related to Vtuber production and utilization. The services can be divided into two main categories: production and utilization.

Production Services

Coconala’s production services encompass various stages such as:

- Character Design: Conceptualizing the character's appearance and personality.
- Illustration Creation: Drawing the character based on the design.
- Part Separation: Dividing illustrations for animation.
- Modeling: Creating 2D or 3D avatars for use in content.
- Logo Creation: Designing logos for streaming screens or merchandise.

Utilization Services

Once a Vtuber is created, clients can employ them in various contexts like:

- Game Streaming: Streaming gameplay using the Vtuber avatar.
- Music Videos: Producing music videos featuring Vtubers.
- Product Promotions: Utilizing Vtubers for promoting items and services.
- Marketing Services: Requesting Vtuber-related advertising and social media management.

A highly sought-after service is the ‘All-in-One Production,’ which consolidates character design, illustration, and modeling into a single package, making it accessible for those who may lack technical expertise in Vtuber creation. Users can streamline the process and focus on their creative vision without getting bogged down by the technicalities.

Successful Implementations

Coconala has facilitated various successful projects, such as:

- TOPPAN Holdings, which sought to produce a 3D avatar for promotional use efficiently and found Coconala's speed and service quality exceeded expectations.
- Tokyo University of Foreign Studies, which needed a Vtuber to conduct online classes without showing a professor’s face due to privacy concerns. Coconala offered a cost-effective solution, enabling the use of both 2D and 3D avatars for their classes.

Conclusion

As the Vtuber market continues to evolve, services like those offered by Coconala are playing a critical role in shaping the landscape. The increasing demand for innovative Vtuber content reflects a broader trend of digital engagement in Japan. Companies and individuals alike can benefit from the tools and services that integrate creativity and technology to create captivating content in the virtual space.

For more information, visit Coconala.