Catnomics: How Cats Bring Nearly $19 Billion a Year to Japan

While some countries build their economies on oil, technology, or tourism, Japan has long been developing another rather unusual asset – cats. According to estimates by Japanese analysts, the so-called “cat economy” (Catnomics) will generate about $18.8 billion in economic impact for the country in 2026. And this is not a joke or an internet meme. Cats in Japan have long become a full-fledged sector of the economy, influencing retail trade, tourism, publishing, the service industry, and even the real estate market.

Today, the influence of cats in Japan can be felt literally everywhere. From famous cat cafés and specialized pet hotels to souvenir shops, tourist routes, the publishing industry, and themed festivals. For millions of Japanese people, cats have become not only pets but also an important part of the country’s cultural identity.

This is especially noticeable in Tokyo, where there is an entire district known as “cat town” – Yanaka Ginza. Here, images of cats decorate shop signs, street signs, cafés, and souvenir stores. Tourists from all over the world come here not only for the atmosphere of old Tokyo but also to try cat-shaped sweets, buy themed souvenirs, or order personalized seals featuring their beloved pets.

However, the true scale of the cat economy is revealed in the statistics. According to data from the Japan Pet Food Association, there are approximately 8.8 million domestic cats in the country compared to 6.8 million dogs. Cats have maintained their lead for about ten consecutive years. Moreover, there are now more pet cats in Japan than children under the age of 15.

Each family that owns a cat spends an average of about $11,300 on its care over the animal’s lifetime. These expenses include food, veterinary services, toys, clothing, accessories, insurance, grooming, pet hotels, and much more. When these amounts are multiplied by millions of pets, it becomes clear why the market continues to grow even amid economic uncertainty.

Another unique phenomenon is the famous cat café. The first establishments of this kind appeared in Japan and quickly became popular among residents of large cities. Many Japanese people live in small apartments or work so much that they cannot keep pets of their own. Cat cafés have become a way to relieve stress and gain emotional comfort after a working day. Today, such establishments operate throughout the country and attract millions of visitors every year.

Cats also play a huge role in the tourism industry. Particularly popular are the famous “cat islands,” where the number of cats significantly exceeds the number of local residents. The most famous is Aoshima Island, which, thanks to the internet and social media, has become one of Japan’s most unusual tourist attractions. Every year, thousands of tourists travel there specifically to see entire colonies of cats freely roaming the streets.

Another important element of the cat economy is the production of souvenirs. Around two million traditional Maneki-neko figurines – the famous cats with raised paws symbolizing luck and prosperity – are sold every year. These figurines can be found in almost every Japanese shop, restaurant, hotel, and office.

The history of Maneki-neko is rooted in Japanese legends. According to one of the most popular versions, a wealthy samurai once took shelter from a storm beneath a tree near an old temple. At that moment, he noticed a cat that seemed to be inviting him closer. When the man left his shelter, lightning struck the exact spot where he had been standing only moments earlier. Out of gratitude, the samurai restored the temple, and the image of the cat became a lasting symbol of good fortune.

Cats have also firmly established themselves in Japanese literature. More than a century ago, writer Natsume Sōseki created the novel I Am a Cat, which is considered one of the most famous books in the history of Japanese literature. Later, cats regularly appeared in the works of Haruki Murakami and many other authors. Publishers have long recognized their commercial appeal: images of cats are often used even on the covers of books whose plots have nothing to do with animals.

Interestingly, the love of cats is shared by members of Japan’s elite as well. Cats live in the family of the Emperor of Japan, and many prominent politicians openly express their affection for these animals. In Japanese culture, the cat has long symbolized calmness, harmony, and inner balance.

Economists note that the contribution of cats to the country’s economy is already comparable to the impact of some major national events. According to Kansai University professor Katsuhiro Miyamoto, the overall economic impact of the cat industry in 2026 is only slightly behind that of the large-scale Expo 2025 international exhibition in Osaka.

At the same time, the phenomenon of “catnomics” continues to grow. Pet food manufacturers, veterinary clinics, developers of mobile applications for pet owners, tourism companies, and even construction firms are increasingly focusing on the needs of cat owners.

Paradoxically, one of the most serious threats to the future of the cat economy is connected to Japan’s own demographic crisis. The country’s population is shrinking, the share of elderly people is increasing, and there are fewer young families. In the long term, this may lead to a decline in the number of household pets.

For now, however, Japanese cats remain the true masters of the situation. They have long ceased to be merely pets and have become a full-fledged economic resource that brings billions of dollars to the country every year. And if there is any example in the world of how furry companions can become part of a national economy, Japan remains the clearest proof that sometimes money really does love cats.