To win over Japan’s youth, brands must prove their ROI

Today’s always-online, hyper-digital youth are turning their back on tradition, chasing only cheap, fast thrills – at least, that’s the established narrative. A massive new market survey suggests that in Japan, this may no longer be the case.

Earlier this year, the consumer research experts at Rakuten Insight published the findings of its annual Asking Big Data survey, tracking the lifestyle trends of approximately 400,000 individuals between 2024 and 2026. The results reveal that far from abandoning their heritage, Japan’s young adults are leading a quiet cultural revival. They’re also saying goodbye to cheap consumerism, instead focusing on growing stock portfolios and an analytical approach to healthy eating.

Return to tradition

For years, the story has been that young people in Japan are drifting away from their cultural heritage. However, Rakuten Insight’s survey reveals a different picture entirely: 43% of respondents in their 20s explicitly stated that they ‘value old traditions’ – a 4.3-point increase over the past three years. The desire to ‘learn more about history and culture’ has grown by 2.3 points, now capturing nearly half (48.5%) of this age group.

Analysts attribute this trend to several converging factors. One is pop culture, as historical films and period-piece dramas spark renewed interest in Japan’s past. Another is the massive influx of inbound tourism and international praise for Japanese culture, which has prompted young people to re-examine their own roots.

“In an increasingly globalized world, this likely reflects a desire among young people to re-confirm their identity,” comments Rakuten Insight Senior Data Analyst Kozo Suenaga. “After an era of mass production and consumption, they are re-evaluating the warmth of handcrafts and authentic historical value, while looking towards the Japanese spirit as a source of calm and healing in a stressful society.”

But young people aren’t simply seeking a return to the past, Suenaga explains, instead remixing tradition to fit with modern society. They are blending digital and analog experiences, renovating traditional homes, and incorporating heritage crafts into their modern lifestyles. Brands that are able to authentically merge historical craftsmanship with modern utility are finding a highly receptive audience.

“Moving forward, it will be crucial not just to protect traditional values, but to reinterpret and rebuild them to match modern sensibilities. Initiatives that capture this trend will likely drive future product and service competitiveness.”

Move over, cos-pa; it’s time for in-pa

Cos-pa (cost performance) and tai-pa (time performance) are well-established phrases in the Japanese lexicon. While these tenets of affordability and efficiency remain important, Rakuten Insight’s data suggests that younger consumers are upgrading their metrics: the new standard is in-pa (investment performance).

Survey respondents in their twenties showed the highest rise across all generations in spending their disposable income on stocks and financial investments, jumping from 15.4% in 2024 to 17.2% in 2026. The data aligns with trends on Rakuten Securities, which has emerged as the brokerage platform of choice for many first-time investors in Japan.

This mindset extends beyond the stock market, even becoming a crucial pillar of daily consumption: Over 70% of Gen Z shoppers now factor in resale value before making a purchase.

“These results suggest youth consumption is shifting from prioritizing cheapness to choices conscious of future value and recovery potential,” Suenaga says. “The decision-making process itself is approaching an investment mindset.”

As young consumers move away from cheap, disposable goods in favor of assets that retain value or deliver personal growth, brands that can’t make the case for their product’s future value or potential for capital recovery are becoming less attractive.

“Moving forward, ROI (return on investment) will become an increasingly important standard. Beyond cos-pa and tai-pa, interest will expand to in-pa,” Suenaga continues. “Consequently, products or services that cannot demonstrate what future value will be gained or how it can be recovered will struggle to enter the consideration set, regardless of how cheap they are.”

Investing in health and wellness

This ROI-driven mindset is also reshaping Japan’s health and wellness sector. Rakuten Insight’s survey found that consumers in their 20s now lead all age groups in the utilization of supplements and health foods. More of these consumers are also willing to pay a premium for verified health benefits and are proactively trying trending wellness products.

“The data confirms growing interest in health foods and related products among youth,” Suenaga notes. “At 39.9%, their frequent use of supplements is the highest across all age groups.”

This trend goes well beyond basic hype; young people are incorporating data-driven strategies, treating their bodies like stock portfolios. Recovery wear, smart health-tracking devices and complete nutrition foods help monitor key performance indicators and verify results.

Young consumers want fast feedback loops to determine whether their wellness investment is worth continuing. For health brands, youth marketing can no longer rely on vague promises of boosted vitality. They need to offer a transparent, low-risk investment format with measurable milestones.

“Future health products aimed at youth will require more than just explanations of efficacy; they will require investment design (KPIs, short-term goals) predicated on visible results, fast recovery, and low risk of failure.”

Rakuten Insight’s data paints an intriguing picture of Japan’s modern youth, as they reach back to the authenticity of their cultural heritage and approach consumption with data-driven practicality. For merchants on Rakuten Ichiba and other businesses in Japan, understanding this dual nature may be the key to capturing a new generation of customers.