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Nekonomics: The Economic Impact of Cats in Japan

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For Kevin

Cats are not just beloved in Japan – they are celebrated, idolized, and in recent years, monetized. This intense relationship between felines and Japanese society has generated a curious yet real economic concept: Nekonomics. This expression blends "neko" (猫, cat, in Japanese) and "economics," and emerged to describe how the national fascination with cats is generating billions of yen annually.

The term started as an academic joke but was quickly adopted by analysts and the media after studies revealed the significant impact that cats were having on sectors such as tourism, commerce, technology, and even urban planning. Today, Nekonomics is a consolidated and expanding economic force, driven by demographic, digital, and emotional factors.

And it all started with an irony: a playful response to the seriousness of "Abenomics".

From Politics to Meow: How the Term Nekonomics Originated

The term Nekonomics (ネコノミクス) was coined in 2015 by Katsuhiro Miyamoto, a professor at Kansai University, following the explosion in popularity of Tama, a cat who became a train station master in Wakayama Prefecture. In analogy to the economic policy of then Prime Minister Shinzo Abe, called Abenomics, the professor used the pun to highlight how cats were generating real income.

While Abenomics involved fiscal reforms and monetary stimuli, Nekonomics stimulated the economy through affection and popular culture.

Recent studies have shown that the economic impact is not small. According to a survey by Yano Research, the cat-related products and services sector generated over ¥2 trillion in 2022. In 2025, the projection is ¥2.9 trillion (around US$19 billion). And the growth continues steadily, driven by various pillars.

Amigurumi guide - Japanese crochet dolls

Cat Tourism: Destinations That Breathe Feline Vibes

The relationship between tourism and cats in Japan is stronger than it seems at first glance. Various regions are reaping the benefits of cat appeal to attract visitors, especially urban Japanese seeking emotional refuge.

Ilhas dos Gatos

The famous "Cat Islands", such as Tashirojima and Aoshima, are emblematic examples. With feline populations larger than human ones, these islands receive state subsidies to maintain their identity. Between 2021 and 2023, around ¥500 million was invested in tourist infrastructure aimed at the protection and promotion of these destinations.

Despite being isolated, the islands received tens of thousands of tourists per year, generating income for small communities and revitalizing areas that were in population decline.

Nekojima - meet 20 cat islands in Japan

Thematic and Immersive Experiences

In addition to the islands, companies like Felissimo have emerged, which organizes paid tours to feed stray cats in Tokyo. The tickets, sold for about ¥8,000 (US$55), were sold out until 2024. For many, it is more than just a trip – it is a therapeutic emotional experience.

Cat Cafés: An Expanding Industry

The first cat cafés appeared in Osaka in 2004, providing relief from urban stress. In 2023, Japan is home to over 150 establishments, generating annual revenues of approximately ¥10 billion (around US$68 million). Companies like Neko no Jikan and Cat Cafe Mocha have expanded into franchises, attracting tourists and locals. During the pandemic, some adopted hybrid models, such as virtual sessions, maintaining their relevance.

Digital Economy: Cats Dominate the Internet and Startups

It's not enough to be cute in person. Cats are also taking over the digital world, generating income for creators, platforms, and brands.

Feline Influencers and Niche Culture

You have probably heard of Maru, the YouTube cat who loves boxes. In 2022, he generated around US$1,2 million in revenue through partnerships, merchandising, and advertising. He is not alone: Japan has a legion of “nyanfluencers” making impressive figures on Instagram, TikTok, and YouTube.

These cats have become brands, and more and more companies are betting on them for advertising unrelated products – from insurance to cars.

Technological Innovation and Virtual Reality

A relação dos japoneses com seus gatos também está se digitalizando. Durante a pandemia, o projeto NekoVR ofereceu experiências de interação com gatos virtuais por meio do Meta Quest 2. Foram mais de 200 mil usuários em menos de 6 meses.

Startups like Tailly have created collars with AI capable of translating meows, and the interest was so great that the stocks sold out even before the official launch.

Gatos e Blockchain

Japan also rode the wave of NFTs. Rare examples from the platform CryptoKitties, despite not being Japanese, gained fans there. In 2021, one of them was sold for ¥18 million (US$123 thousand).

Nekomata - the malevolent Japanese yokai cat

Luxury Products, Fashion, and Pop Culture

The physical commerce is also being influenced by cat culture. Cats can be found in the aisles of major department stores, in luxury product designs, and even on beverage labels.

  • Takashimaya launched a line of cat kimonos with Swarovski crystals, with prices up to ¥300,000 (US$2.050).
  • The brewery Sapporo created the limited edition "Nyan Lager" with cat labels. In 3 days, over 1 million units were sold.
  • In stores like Don Quijote, items with cat prints represent up to 20% of regional souvenir sales.
Maneki neko - Japanese beckoning cat - meaning and origin

Controversies and Tensions: The Other Side of Nekonomics

Not everything is purring. The growth of this sector has brought important ethical and social issues to the forefront.

Animal Exploitation

Reports from 2022 by the NGO Animal Rights Center Japan revealed that about 20% of the cat cafés investigated showed signs of mistreatment. Exhausted cats, lack of resting periods, and absence of veterinary care are among the most commonly cited issues.

Gentrificação Felina

The promotion of places like Enoshima as cat paradises has led to real estate appreciation, raising rents by up to 40% and forcing long-time residents, especially the elderly, to leave the area.

These distortions signal the need for regulation and balance between tourism and animal welfare.

Neko cafe - let's play with the cats?

The Future of Nekonomics: Where is the Catocracy Heading?

Experts point to three main trends on the horizon of Nekonomics:

  • Gatos no MetaversoBandai Namco has already announced the game NekoVerse, where players will be able to “adopt” digital cats with authentication via blockchain.
  • Robôs Terapêuticos: After the success of PARO (the robot baby seal), Japan is preparing a versão felina para 2024, focused on the mental health of the elderly.
  • Licenciamento SolidárioThere are ongoing debates about royalties for shelters when rescued cats become digital celebrities or viral memes.

Conclusion: A Country That Loves, Monitizes, and Reflects on Its Cats

Nekonomics is more than a sociocultural curiosity. It reflects demographic, emotional, and technological trends that shape the new Japan: an urban, aging, and increasingly connected society. Cats, with their independence and charisma, represent much of what the Japanese seek in their relationships – and this translates into consumer behavior.

More than just fashion, Nekonomics is a economic mirror of a transforming country, and a reminder that even a meow can influence markets.