Japan reuse market grows to 3.46 trillion yen amid tourism shifts

Japan's reuse market reached 3.46 trillion yen in 2025, marking 16 consecutive years of growth. This expansion was driven by rising inflation, which increased demand for affordable second-hand goods, and a record 42.68 million inbound tourists. Key growth sectors included brand goods, fashion, toys, and mobile devices.

However, recent tourism data shows fluctuations. In August 2026, the number of visitors to Japan fell by 9.6% year-on-year to approximately 3.1 million, the first decline in two months. This dip was largely attributed to a 59% decrease in visitors from China, despite record highs from travelers in Italy and Spain.

The reuse market's heavy reliance on foreign demand and tax-free shopping presents potential risks, particularly with upcoming changes to tax refund systems scheduled for November 2026.