In response to rising inflation and stagnant wage growth, arcade operators in Japan’s suburbs are increasingly filling claw machines with daily necessities such as eggs, rice, laundry detergent, and toilet paper to attract cost-conscious consumers. This innovative approach aims to blend essential shopping with entertainment, allowing families to enjoy outings without sacrificing their budgets.

At a Tokyo suburban arcade, Minae Kamata, a 25-year-old housewife, demonstrated the appeal of these machines by winning a pack of toilet paper after just two 100-yen ($0.64) attempts. “If you’re a bit lucky, it’s the same as buying at a discount,” she said, highlighting the blend of fun and value that draws customers.

Experts credit the trend to Japan’s persistent inflationary pressures. Prices have been rising faster than wages for several years, resulting in declining expenditures on food and everyday products. Naoko Kuga, a consumer behavior specialist at the NLI Research Institute, explained that retailers are seeking to make purchasing more enjoyable to encourage spending and reduce shoppers’ guilt over budget cuts.

Claw machines were already enjoying robust popularity before the recent inflationary surge. According to the Japan Amusement Industry Association, the “prize game” market doubled over the past decade, generating 417.7 billion yen ($2.7 billion) in 2024, and now constitutes nearly 70 percent of arcade revenue. Increasingly, families looking for practical items have become a significant customer base.

One prominent example is Benex, a chain operating several venues in Greater Tokyo, including a large arcade in Kawasaki on the city’s outskirts. Benex has repurposed hundreds of machines to dispense household essentials alongside the traditional toys and snacks. Teruaki Tsuchiya, an executive at Tisco which operates Benex, likened the business model to retailers like Costco and Ikea, noting the strategic choice of suburban locations with ample parking and higher customer spending. Since shifting focus exclusively to claw machines in 2025, Benex has seen revenue from household product sales increase 2.6 times in two years.

Inflation in Japan has recently hovered near the Bank of Japan’s two-percent target, a modest rate by global standards but a notable change in a country accustomed to low or declining prices. For consumers like Chiaki Sugai, a 56-year-old sushi restaurant worker, the claw machines provide a way to save money while enjoying leisure time. After several hours playing, Sugai left with a cart full of prizes totaling nearly 8,000 yen. Another customer, 49-year-old Sachiko Iyokawa, expressed satisfaction with her winnings, particularly premium eggs priced lower than supermarket alternatives.

Major retailers are adapting to this trend as well. Aeon Fantasy, a subsidiary of the Aeon Group, opened its first claw machine area focused on food and household items in October 2025 and has since expanded to seven locations. The company plans to open around 60 such spaces by 2030. Yuya Shiozawa, a manager at Aeon Fantasy, said the concept provides consumers with “fun and the thrill of getting a good deal.” He noted that some customers pair winnings like vegetables with supermarket purchases to complete their meals.

Kuga anticipates that this merger of entertainment and essential retail will persist beyond the current inflation period. As more consumers turn to online subscriptions for household goods, physical stores will likely continue developing creative strategies—including claw machines—to maintain foot traffic and customer engagement.