Japanese wagashi store closures hit record high, 22 closed in 9 months

Japan’s traditional wagashi shops are facing an existential crisis. From January to September 2026, the number of Japanese confectionery store closures across the country has reached 22, surpassing the record for the whole year of 2025 and setting a record for the most since statistics were collected, and the number of closed stores may continue to increase.

Among the 138 bankruptcies since 2020, 17% have been established for more than 100 years, and half of the total have been established for more than 50 years, showing that old Japanese confectionery stores that have been in operation for many years cannot escape the difficulties.

Analysis pointed out that the main reason for the bankruptcy trend is the soaring price of raw materials such as red beans, sugar, and glutinous rice, as well as the increase in packaging materials, water and electricity bills, and personnel costs. However, wagashi are mostly used as daily refreshments or souvenirs, and consumers are not very receptive to price increases, making it difficult for operators to completely pass on the costs. In addition, structural problems such as low acceptance among young people, an aging customer base, reduced demand for gifts due to simplified weddings and funerals, and an aging workforce and a shortage of successors have also accelerated the abandonment of business by industry players.

However, the market is also polarized. Stores that have successfully combined tourism opportunities, expanded online shopping and hometown tax (donating taxes to a certain county or city in exchange for local souvenirs) are still doing well. There are also businesses that have launched "new Japanese confectionery" such as fruit daifuku, warabi mochi, and red bean chocolate to attract young people. How to develop new customer groups and new channels while maintaining traditional technologies will be the key to the survival of wagashi stores.