Tiny Ceramics Bring New Charm to Japan's Capsule Toys

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The charm of capsule toys never fades — the mechanical feeling of inserting a coin and turning the knob remains oddly satisfying. While character merchandise still dominates the market, recently, tiny ceramics have also gained popularity, especially among women.

Japan's capsule toy industry began in 1965 with imported American vending machines and has since thrived by embracing anime and miniature toy culture. In 2024, the market hit a record ¥90 billion JPY ($597 million USD). The 65mm capsules have continued to evolve, offering an increasingly diverse range of surprises.

Among the latest trends are Kasama-yaki ceramics from Ibaraki Prefecture — charming owl-shaped chopstick rests and beautifully colored sake cups, all available for just ¥500 (about $3).

"We've enlisted five local kilns, including renowned artists whose works typically sell for millions," said Masaki Miyazaki, president of Creation Com. The Kasama-based company plans and sells capsule toys, and it also operates vending machines.

In 2022, the Kasama-yaki series was placed at 50 locations, including roadside stations, where 3,000 capsules sold out in a month. Its success sparked interest in other regions, such as Mashiko-yaki from Tochigi and Seto-yaki from Aichi. Creation Com's revenue soared to ¥6.43 billion (about $43 million) in 2024, with projections of ¥8 billion for 2025.

*Capsule toy machines installed in the retro-modern, mid-century-inspired lobby of Hotel Groove Shinjuku. (©Sankei by Akiko Shigematsu)*

A Thriving Industry

Creation Com entered the capsule toy industry in 1997. For 16 years, it has produced official capsule toys for museums and art exhibitions in Tokyo's Ueno district. Miyazaki recalls seeing women enthusiastically turning knobs for Vincent van Gogh and Claude Monet collectibles.

"The scope is expanding from toys to a greater variety. We wanted to try different things as long as they fit in the capsules. We asked ourselves — what would satisfy adults? The answer was promoting local traditional crafts."

Today, ceramic capsule toys include local sake cups from breweries and hot springs, sumo wrestler figurines from Tokyo's Asakusa, and even pet toothbrush holders sold at major home centers.

The term "Gacha Gacha," synonymous with "capsule toy" in Japan, was trademarked by toy maker Bandai in 1988. According to Katsuhiko Onoo, president of the Japan Gacha Association and author of The Economics of Gacha Gacha, the capsule toy market grew by ¥10 billion (about $66 million) in 2024, surpassing ¥90 billion. Over 700,000 machines are installed across Japan.

Since the onset of COVID-19 five years ago, many vacant retail spaces have been converted into capsule specialty shops. Their low maintenance, requiring no staff or electricity, has fueled further growth.

Creative Collaborations

In February, capsule toy machines were installed in the lobby of Hotel Groove Shinjuku, located on the 18th floor of Tokyu Kabukicho Tower. The concept, "Take your hotel memories with art magnets," led to the creation of eight types of ceramic magnets.

Two contemporary artists who stayed at the hotel contributed original designs. They feature room views, a DJ booth, pajamas, and laundry rooms — all captured in 47mm square tiles made from upcycled Mino ware, priced at ¥1,000 (about $7) per turn.

*All eight types of art magnets from Hotel Groove Shinjuku attached to a refrigerator door. They are made from upcycled Mino ware. (©Sankei by Akiko Shigematsu)*

Around 90% of the hotel's guests are inbound tourists. The capsules have been especially popular with "particularly stylish women in their 30s and 40s" who enjoy spending spare change on unique keepsakes, according to the marketing representative.

Capsule toys are also featured at the Noto Food Revival Fair, running until April 30 at Kotora Komichi, a dining alley in Toranomon, Tokyo. Planned by Sugiyo, a seafood processing company from Noto, the capsules include Kutani-yaki chopstick rests from Ishikawa Prefecture.

Creation Com's President Miyazaki witnessed the reopening of retail stores along the Ibaraki coastline after the Great East Japan Earthquake. He vividly remembers children rushing toward the capsule machines, with grandparents applauding with joy.

Capsule toys have become an integral part of Japanese culture across three generations, capturing the simple joys of everyday moments.