Expansion of Japan's E-Commerce Market Size

あゆみ佐藤
Nov 6
3 min read

Japan’s e-commerce market continues to show remarkable momentum. In 2024, the BtoC (consumer) e-commerce market reached a record ¥26.1 trillion (up 5.1% year-on-year), while the BtoB (business-to-business) e-commerce market expanded to ¥514.4 trillion (up 10.6%), reflecting rapid digitalization across industries. (Source: METI)

Latest Market Size and Growth Trends

According to the 2024 survey by the Ministry of Economy, Trade and Industry (METI), Japan’s BtoC e-commerce market reached ¥26.1 trillion, maintaining annual growth of more than 5%.The BtoB e-commerce market is even larger, totaling ¥514.4 trillion, showing a robust 10.6% increase from the previous year.

E-Commerce Penetration Rates

The e-commerce penetration rate—the ratio of e-commerce transactions to total commercial transactions—also continues to rise:

BtoC-EC: 9.8% (+0.4 points YoY)
BtoB-EC: 43.1% (+3.1 points YoY)

This steady increase demonstrates Japan’s accelerating shift toward online commercial practices across all sectors. (Source: METI)

Market Size and Trends by Segment

1. Merchandise (BtoC) Segment

The merchandise-based e-commerce market reached ¥15.2 trillion (up 3.7% YoY), with a penetration rate of 9.78%.Key product categories include:

Category	Market Size	Growth Rate	EC Penetration
Food, Beverages & Alcohol	¥3.12 trillion	+6.36%	4.52%
Consumer Electronics & PCs	¥2.74 trillion	+2.26%	43.03%
Apparel & Accessories	¥2.80 trillion	+4.74%	23.38%
Furniture & Interior Goods	¥2.56 trillion	+3.62%	32.58%
Books, Videos & Music	¥1.87 trillion	−0.84%	56.45%

Sectors such as media & entertainment, electronics, and furniture/interior goods show particularly high digitalization and competitive growth. (Source: METI)

2. Service Segment

The service-based e-commerce market recovered to ¥8.2 trillion (up 9.43% YoY), driven by strong rebounds in:

Travel services: ¥3.52 trillion
Food service: ¥0.97 trillion

Ticketing, financial, and beauty-related online services also continue stable growth.

3. Digital Content Segment

The digital sector (including e-books, paid music/video streaming, and online games) achieved ¥2.7 trillion (up 1.02% YoY).While online gaming remains stable at around ¥1.26 trillion, video and music streaming services continue to expand.

CtoC and Cross-Border E-Commerce

CtoC (Consumer-to-Consumer)

The CtoC e-commerce market, led by flea market and resale apps, reached ¥2.5 trillion (up 1.82% YoY), showing consistent growth through expanding user adoption.

Cross-Border E-Commerce

Cross-border transactions between Japan, China, and the U.S. are also increasing:

Purchases by Chinese consumers from Japan: ¥2.64 trillion (+8.5%)
Purchases by U.S. consumers from Japan: ¥3.14 trillion (+6.0%)

China’s market, in particular, continues to grow over 8% annually, reinforcing Japan’s role as a strategic hub for Asian e-commerce expansion. (Source: METI)

Key Drivers Behind Market Expansion

Sustained Increase in EC PenetrationContinuous digitalization among both corporations and consumers, supported by strong infrastructure, government initiatives, and mobile payment adoption.
Post-COVID Lifestyle and Business ShiftsThe pandemic accelerated online adoption in previously offline categories such as travel and dining.
Smartphone Adoption and Improved Digital UXWith one of the world’s highest mobile usage rates, Japan’s mobile e-commerce and app-based transactions are driving overall market activity.
Diverse Platforms and Competitive EcosystemIn addition to major marketplaces (Amazon, Rakuten, Yahoo! Shopping), specialized EC platforms are increasing. Advanced services for payment, logistics, and digital marketing are reducing entry barriers.

Opportunities for Overseas Manufacturers

1. Access to a High-Growth Market

Japan ranks as the 4th largest e-commerce market globally, spanning merchandise, services, and digital content.

2. Well-Developed Infrastructure

Comprehensive BtoB support services—covering site construction, logistics, payments, and marketing—enable efficient market entry and operation.

3. Expanding Cross-Border Potential

Outbound e-commerce from Japan to Asia (China and Southeast Asia) is also growing rapidly, with strong demand for multilingual localization and global payment systems.

4. Diverse and Quality-Oriented Consumers

Japanese consumers value safety, reliability, and quality, making the market ideal for premium brands seeking to enhance loyalty and brand trust.

Market Data Summary

Category	2022	2023	2024	Growth
BtoC-EC	¥22.7T	¥24.8T	¥26.1T	+5.1%
BtoB-EC	¥420.2T	¥465.2T	¥514.4T	+10.6%
CtoC-EC	¥2.4T	¥2.48T	¥2.53T	+1.8%
Merchandise BtoC	¥14.7T	¥15.2T	—	+3.7%

(Source: METI)

Outlook and Challenges Ahead

Japan’s e-commerce market is expected to maintain strong, sustainable growth, advancing toward future-oriented themes such as:

Multilingual & multi-currency payments
Sustainability and ESG integration
AI utilization for logistics and customer personalization

For foreign manufacturers, entering the Japanese market offers opportunities to scale through local partnerships, strengthen brand presence, and reach a wide and loyal consumer base.Japan’s e-commerce sector remains both a high-growth and stable investment destination, supported by transparent data and government-backed market research.

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