Japan’s Toy Market Breaks 1 Trillion Yen Despite The Falling Birthrate

Aug 29, 2025 | News On Japan

TOKYO - The Tokyo Toy Show opened in Tokyo on August 28, with about 210 companies from Japan and overseas exhibiting roughly 35,000 products. Japan’s toy market reached 1 trillion yen for the first time in fiscal 2023 and continues to expand despite the declining birthrate.

Companies and industry officials point to two main drivers: the rise of the ‘kidult’ segment—adults who enjoy toys with a childlike enthusiasm—and robust inbound demand from overseas visitors shopping in Japan.

Manufacturers are accelerating development of adult-oriented lines, including premium replicas and collectibles. A meticulously reproduced time-train model inspired by a famous film series was shown with a list price of 59,400 yen, underscoring a strategy that targets higher-spending adult buyers. Classic brands are also refreshing long-running hits; functions that evoke 1990s and 2000s nostalgia are returning, such as device-to-device communication in virtual-pet games after roughly two decades.

Adult-focused versions of long-standing characters are lifting results. A product line aimed at grown-up fans of Licca-chan, released last year, pushed total Licca-chan sales to six times the previous year. Many buyers pose and photograph the figures and share images on social media, turning styling and display into part of the play pattern. Analog-style gadgets are trending as well, including instant cameras set to shoot in black and white for a retro, simplified look.

Blind-bag collectibles remain a staple of repeat purchases. The Sylvanian Families Baby Collection, sold in opaque packets that conceal the specific figure inside, sells more than one million units a year. The surprise element, along with affordable price points, encourages multiple buys and taps into nostalgia, which some consumers describe as a form of self-care in uncertain times.

Inbound demand is adding momentum. Overseas visitors are purchasing toys in Japan in increasing numbers, according to exhibitors, while companies see opportunities to reach global customers through domestic retail and online channels. The international footprint on the show floor is growing as well: of 92 overseas exhibitors this year, around 80% are from China, marking a record presence by Chinese companies.

Looking ahead, makers expect greater use of AI and other digital technologies in both products and marketing. As social media elevates visually engaging niches and attitudes shift toward ‘adults can play too,’ the market is broadening beyond children, reinforcing a trend that has carried Japan’s toy industry to the 1 trillion yen threshold.

Source: TBS

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