Subscription service market size Japan FY 2021-2025
The subscription service market in Japan was valued at over 896 billion Japanese yen in the fiscal year 2022. Although the Japanese subscription market experienced a late start due to regulatory barriers, the market was forecast to exceed one trillion yen in fiscal year 2025. Subscription services cover various all-you-can-use services paid for at regular intervals but exclude services in which a transfer of ownership occurs, as in the case of subscription boxes.
Subscription services
Subscription models are particularly prominent in the leisure and entertainment markets, driven by the success of subscription video-on-demand (SVOD) since the coronavirus pandemic. In 2024, the SVOD penetration rate in Japan crossed the 40 percent mark, with young subscribers commonly using more than one service simultaneously. Although companies in other consumer-related sectors have started to offer their services for a recurring fee, the awareness of most subscription service categories remains low.
The spread of the subscription model
Digital subscriptions have become the supporting pillar of Japan’s subscription service market, but services tied to the needs of everyday living are emerging. Apart from community retail co-ops that generated over two trillion yen in sales from home deliveries, companies such as Oisix ra daichi and Yoshikei have joined the competition as grocery and meal kit delivery services. In the durable consumer goods sector, a preference for renting over owning has been working in favor of businesses like airCloset. Serving its over 37,000 thousand users subscribed to paid monthly plans, airCloset rents out clothes that the user can send back to receive new pieces. This subscription model can also be observed in other markets like the furniture and household segments, and consumer electronics.