Market Overview

Japan’s children-related consumer market (a total of 34 segments across six business categories) grew by 2.9 percent from the previous year to 11,164,700 million yen in FY2025 (based on the sales of businesses; except for some segments in Leisure Goods and Services category, where the market sizes are calculated based on box-office revenue). 

Despite the declining birthrate and persistent inflationary pressures dampening consumer spending, the children-related consumer market remained resilient in FY2025. Childcare services maintained strong performance, and leisure goods and services expanded. Meanwhile, children’s apparel posted only modest growth, while the remaining three categories, educational products and services, child-directed foods, and children’s products and lifestyle services, recorded declines.

Noteworthy Topics

Childcare Services

Childcare services, educational products and services, and leisure goods and services occupy a large pie in the children-related consumer market. As a case in point, we will outline the trends in childcare services.


The childcare services market comprises two primary segments: daycare centers and after-school childcare. Daycare centers account for the majority of the market, though growth had slowed since FY2020 due to a declining birthrate and fewer facility openings. However, this segment marked positive growth for the last two consecutive years (FY2024 and 2025), driven by government funding to support child-rearing families, revised minimum staff-to-child ratio regulations, and improved working conditions for licensed childcare workers. Meanwhile, the after-school childcare segment expanded, propelled by rising demand as well as higher monthly fees per child to offset climbing operating costs.

Future Outlook

The child-related consumer market is poised to grow, despite headwinds from inflationary price increases and a shrinking youth demographic. Childcare services, in particular, are expected to see steady expansion, buoyed by rising demand from dual-income households. The leisure goods and services segment is also likely to support overall market momentum, fueled by compelling new content, price adjustments, broader demographic appeal across wider age groups and "oshi-katsu" culture.
The children-related consumer market (a total of 34 segments in six categories) is projected to grow by 0.6% year-over-year to 11,233,100 million yen in FY2026 (market sizes primarily estimated based on corporate sales within each respective segment, with select segments in leisure goods and services calculated using box-office revenue instead). 

Research Outline