Market Overview

History of the “culture center” in Japan is said to have started when a newspaper publisher opened a liberal arts class as a part of their corporate patronage activities. The market was formed by the entrants from mass-media industry (newspaper publishers, broadcasting companies, etc.), retailers (department stores, etc.), and transportation companies (major private railway companies, etc.). However, the market is on decline due to aging of lesson participants, failure in acquiring new customers, and intensified competition with other services like English learning schools, fitness gyms, extension courses at universities, and liberal arts courses offered by public institutions.

The market is on a downward trend for the last few years due to the penetration of the Internet that has led to an increase of online contents that can be viewed for free. Furthermore, during the Declaration of a State Emergency for COVID-19, many of the "culture centers" had no choice but to close, just like other stores that were forced to close down or shorten business hours. This was especially true for lessons/classes that involve person-to-person contact or vocal activities. As a result, the "culture center" market for FY2020 dipped to 60.6% of the previous fiscal year to 22,600 million yen (based on the sales at businesses).

Nevertheless, with a wider variety of online courses (that contributed to the acquisition of new customers) and reopening of in-person courses held at highly ventilated venues (and asking instructors/participants to wear masks), the market has shown recover since the start of FY2021. The "culture center" (adult education center) market for FY2021 is estimated to grow to 120.4% of the previous fiscal year to 27,200 million yen, and onto 33,000 million yen for FY2022 (121.3% on year-on-year basis).

Noteworthy Topics

Hybrid Courses Open Opportunities for Market Expansion

The adult learning classes at “culture centers” had been taken mostly by senior citizens, and they attended the classes in person. However, because of the activity restrictions amidst the pandemic that stopped people from attending classes in person, business operators increased online offerings so that the participants can take online lessens at home.

Meanwhile, with no geographical constraints, online classes widened opportunities to attract new customers. The market is expected to expand with the recognition of “culture centers” as service accessible from anywhere in Japan.

Future Outlook

Size of the "culture center" (adult education center) market for FY2023 is forecasted to reach 109.1% of the previous fiscal year to 36,000 million yen. As the pandemic restrictions on socioeconomic activities fade, it is assumed that people return to lessons/workshops. Coupled with the increase of students taking online courses, the situation is anticipated to propel the market expansion. Demand for hybrid (offline and online) classes and workshops that are unique to the learning classes offered by “culture center” is expected to grow hereafter.

Research Outline