The Japanese government wants to focus on ‘reuse consumerism’ A significant surprise for the Land of Kawaii
The second-hand market has been growing for years worldwide, including in Japan. As highlighted in the report The State of Fashion 2025 by McKinsey & Company in collaboration with The Business of Fashion, the resale sector will account for 10% of the global clothing market by the end of 2025, with a business volume expected to reach $350 billion by 2028 and a compound annual growth rate of 12%. For this reason, Japan has decided to focus entirely on second-hand goods to revitalize the nation’s economy, a new consumption model that the Japanese government aims to adopt by next year. According to the Japan Times, the Ministry of the Environment wants to confirm market guidelines by March 2026.
In Japan, the reuse market has grown enormously over the past decade, rising from $13.2 billion in 2017 to $26.3 billion projected by 2030. According to Japanese officials involved in the new policy, one of the reasons for this market boom was the Covid-19 pandemic, which led many consumers to change behavior both in favor of their health and in response to the rising cost of living. Therefore, the circular economy will be Japan’s main focus starting in 2026, a project expected to transform the country’s consumption model.
From Kawaii to circularity
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Originating in the 1970s and '80s, kawaii is a cultural phenomenon that has defined Japan for decades. With its adorable and cute aesthetic, brands like Sanrio (Hello Kitty & Friends) and Tamagotchi essentially created the trinket market, the toys to hang on bags, and cute items to have around the house just for the sake of having them. Whether as a distraction from social discomfort or nostalgia for childhood, kawaii embodies the rampant consumerism that exploded at the end of the 20th century, later adopted worldwide - see the Labubu business Labubu.
Kawaii has made consumer culture not just about owning goods, but also about strong emotional engagement. Companies create products that generate an emotional bond with consumers, boosting brand loyalty and repeat purchases. Today, the market is no longer just youthful or domestic; it spans technology, food, advertising, and even contemporary art. For this reason, the government’s idea of betting on the circular economy to revive the economy is quite surprising.
Second-Hand in Japan
@mandasaurusss My favourite thrift store in Saitama!! Just an hour train and bus ride away from Tokyo. #thrift #japanthrift #saitama #sgtravel Bed Chem - Sabrina Carpenter
Although kawaii is still an expanding market worldwide, second-hand goods in Japan and abroad are also showing healthy growth. According to a survey by the Japanese Ministry of the Environment, in 2024 44.1% of citizens purchased second-hand goods. Additionally, the export of Japanese second-hand goods is booming in the West, thanks to the high quality of products such as ceramics and kimonos. To support the growth of cross-border e-commerce, the Ministry of the Environment plans to improve the shipping of items and review the tax incentives used abroad. For now, the ministry has established general guidelines to encourage recycling and reuse. The project is expected to stimulate demand and support the development of new business models focused on the circular economy. According to the Japan Times, the market could grow even further due to Japan’s increasingly aging population.