Japan’s Reuse Market Expands 11.2% as Second Street Leads Growth, May 27

Japan’s reuse market grew 11.2% to 577.5 billion yen in the latest period, with profits rising 5.7% to 16 billion yen over three consecutive quarters above 15 billion yen. Tokyo Shoko Research surveyed 251 reuse businesses nationwide. The expansion reflects consumer demand for affordable secondhand goods and environmental concerns. However, industry consolidation is accelerating as smaller operators struggle to compete.

Second Street Dominates as Market Consolidates

Second Street leads the market with 116.1 billion yen in sales, up 8.8% year-over-year and the only company exceeding 100 billion yen. The company expanded revenue through furniture, electronics, and used apparel sales. Shupping ranked second with 52.6 billion yen, up 7.8%, driven by inbound demand for used camera and luxury watch sales. The top two players now control a significant portion of the 577.5 billion yen market.

Small Operators Face Rapid Consolidation Pressure

Companies with less than 500 million yen in sales comprised 68.9% of the market. Closures accelerated sharply in 2025, with 122 businesses ceasing operations (up 29.7% year-over-year) and 25 firms filing for bankruptcy. Tokyo Shoko Research noted that “despite market expansion, survival remains difficult for low-margin operators.” Industry analysts expect further consolidation through mergers and acquisitions.

Why Consumers Are Buying Used Goods

Consumers cite two main reasons for reuse purchases: economic savings from converting unused items to cash, and environmental benefits from reducing waste and resource consumption. Used book retailers like 古本市場 operate over 170 stores nationwide. Environmental regulations and corporate sustainability goals are also driving demand for reuse services across sectors.

Second Street Enters U.S. Market

Second Street opened its first overseas store in Los Angeles, targeting affluent consumers and tourists. The company cited LA’s status as a global trend hub and its diverse population as key factors. 32 reuse-related stocks trade on Japanese exchanges, reflecting investor interest in the sector’s growth trajectory.

Final Thoughts

Japan’s reuse market is consolidating rapidly around dominant players like Second Street while smaller operators face closure. The 11.2% growth masks a sector in transition toward fewer, larger competitors.

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The content shared by Meyka AI PTY LTD is solely for research and informational purposes.  Meyka is not a financial advisory service, and the information provided should not be considered investment or trading advice.