The Dagashiya Revival: How Japan's Penny Candy Shops Are Coming Back

A few weeks ago, we wrote about how dagashiya (Japan's traditional penny candy shops) were disappearing. Today's update is more hopeful: dagashiya are quietly making a comeback — in ways no one expected.

The Decline We Documented

To recap: Japan once had tens of thousands of dagashiya. By 2020, fewer than 3,000 remained. The shops were dying as their owners aged out and modern convenience stores took over the snack market.

But something interesting started happening around 2022.

The New Dagashiya Wave

A new generation of dagashiya owners is appearing — and they're not who you'd expect. Many are young entrepreneurs in their 20s and 30s — opening dagashiya as side businesses or main careers. Retired baby boomers — using retirement savings to fulfill childhood dreams of running a candy shop. Foreign residents — opening dagashiya as cultural exchange businesses. Cafe and restaurant owners — adding dagashi sections to existing businesses.

The motivations are different from the original dagashiya owners. The new generation isn't doing this purely for profit. They're doing it for community building — modern Japan is often isolating. Dagashiya provide a low-pressure gathering space for kids and adults. Cultural preservation — younger Japanese realize the cultural value of dagashiya and want to keep them alive. Lifestyle business — a small dagashiya doesn't generate much money, but it generates joy. Many new owners are prioritizing happiness over income. Tourist attraction — foreign tourists love discovering authentic dagashiya. Some neighborhoods have turned this into a tourism strategy.

The Cafe-Dagashiya Hybrid

One particularly successful new model is the "dagashi cafe" — a cafe that sells coffee and snacks during the day, then transforms into a dagashiya for kids after school.

These hybrid spaces work because they generate revenue from adults during the morning, become community spaces for kids in the afternoon, attract Instagram-loving young adults who love the retro aesthetic, and bridge generations — grandparents bring their grandchildren.

Tokyo has at least 30 of these hybrid cafes now. Osaka has more. Smaller cities are starting to copy the model.

The Online Dagashiya

Another new model: online dagashiya. Several entrepreneurs are running internet-only candy stores, shipping dagashi to international customers.

Some of these online businesses have grown rapidly. Foreign consumers — especially in the US, UK, Australia, and Southeast Asia — discovered that they could order Japanese candy directly from Japan, often cheaper than buying through import stores.

This is, of course, the model we use at Fuji Time. We're part of this digital dagashiya wave — preserving and spreading Japanese candy culture by shipping it directly from Japan to your door.

The Future

Will dagashiya recover to their 1970s peak? Probably not. The economics of physical retail won't support it.

But the spirit of dagashiya — affordable, fun, community-centered snack culture — is finding new forms. Cafes. Online subscriptions. Pop-up shops. Cultural festivals. Even Western convenience stores starting to stock dagashi for nostalgia value.

The shops may be different, but the snacks live on.

Be part of the dagashi revival → https://fujitime-japan.com/products/seasonal-surprise-box