Expansion of the Travel and Services Sector in Japan's E-Commerce Market and Implications for Overseas Manufacturers

The consumer e-commerce (BtoC-EC) market in Japan reached 26.1 trillion yen in FY2024, continuing its growth trend. Within this market, the travel and service segments have shown particularly notable expansion, supported by the normalization of online consumer behavior and recovery in mobility and leisure demand. Based on the Ministry of Economy, Trade and Industry’s “FY2024 E-Commerce Market Survey,” this report outlines market size and trends in travel, food services, ticketing, financial services, beauty and wellness, and discusses strategic opportunities for overseas manufacturers and service providers.

1. Overview of the Service E-Commerce Market

The total market size of service-related e-commerce in FY2024 was 8.2 trillion yen. Compared with merchandise-based e-commerce, the service sector reflects a broader shift in consumer spending from physical goods to experiential and reservation-based consumption through online channels.

1.1 Travel Services

Market Size: approximately 3.52 trillion yenGrowth has been driven by online travel agencies (OTAs), dynamic travel packages, and mobile booking options. Online itinerary planning and price comparison have become standard behaviors among users.

1.2 Food Services

Market Size: approximately 0.97 trillion yenHome delivery and takeout services are widely used, especially in urban areas and among dual-income households. Convenience and time efficiency are key demand factors.

1.3 Ticketing and Entertainment Services

Market Size: approximately 0.65 trillion yenDigital ticketing and mobile QR-based entry have become mainstream, supporting integrated online-to-offline event experiences.

1.4 Financial Services

Market Size: approximately 1.10 trillion yenOnline application and contracting processes for insurance, investment products, and loans are increasingly common, supported by automated screening systems and chat-based advisory tools.

1.5 Beauty and Wellness Services

Market Size: approximately 0.38 trillion yenOnline reservations for salons, fitness sessions, and remote medical consultations are becoming established as part of everyday routines.

2. Drivers of Growth in the Service E-Commerce Sector

2.1 The normalization of non-face-to-face consumption

Online travel bookings, food delivery, and remote medical consultations that expanded during the pandemic have remained in use as convenient and safe consumer habits.

2.2 Expansion of mobile app usage

Push notifications, streamlined checkout, and personalized reservations are increasing repeat engagement.

2.3 Diverse payment options

Credit cards, electronic money, QR code payments, and deferred payment services reduce barriers to use.

2.4 Data-driven service operations

Recommendation systems and dynamic pricing based on usage history and review data support both revenue growth and improved customer satisfaction.

2.5 Government and regional support

Public programs have encouraged digitization in tourism, food service, healthcare, and small business operations.

3. Strategic Considerations for Overseas Manufacturers and Service Providers

3.1 Travel-related services

Collaboration with inbound-focused reservation platforms can enable multilingual and multi-currency travel products and experiential services.

3.2 Food delivery and takeout

Cloud kitchen models and menu specialization enable efficient market entry through major delivery platforms.

3.3 Ticketing and entertainment

Partnerships for live streaming and virtual viewing experiences can expand engagement beyond physical venues.

3.4 Financial and insurance services

InsurTech and FinTech collaboration can support online application processes and real-time product recommendations.

3.5 Beauty and health services

Remote care solutions and device + app subscription models can support personalized wellness experiences.

4. Key Challenges and Solutions in Market Entry

1. Localization in language, UX, and customer communication

2. Compliance with sector-specific regulations

3. Integration of local payment and billing processes

4. Partnership development with platforms and service networks

5. Outlook

Service-related e-commerce in Japan is shifting into a next-generation digital strategy phase. New business models are emerging in response to changing consumer values, including experiential consumption through live commerce, AI-guided chat-based assistance, AR/VR-based virtual experiences, and sustainability-linked offerings such as carbon-offset travel. Overseas companies can achieve significant results in Japan’s travel and service e-commerce markets by combining advanced technological capabilities with service needs unique to the Japanese market and establishing differentiation strategies that integrate both digital and physical customer touchpoints.

1. https://www.meti.go.jp/policy/it_policy/statistics/outlook/250826_kohyoshiryo.pdf