Japan reuse and pawn shop markets expand amid inflation

The reuse and pawn shop industry in Japan is experiencing significant growth, driven by rising inflation, the normalization of secondhand trading via flea market apps, and an aging population engaging in ‘end-of-life’ organizing. Experts note that approximately 91 trillion yen in ‘hidden assets’ resides within Japanese households, much of it held by seniors.

Specialized buying shops are proliferating due to a low-risk business model that avoids holding inventory by selling items immediately through wholesale auctions. This allows for smaller, low-cost storefronts that function similarly to convenience stores. While many consumers use these services to liquidate items for cash, traditional pawn shops are also seeing increased demand. These shops allow individuals to borrow money by using valuables—such as jewelry or luxury watches—as collateral without losing ownership, provided the loan is repaid with interest.

The domestic reuse market is projected to grow from approximately 3.4 trillion yen in 2025 to 4.6 trillion yen by 2030, according to projections from the Ministry of the Environment.