Capsule toys have evolved in an original way in Japan. The prototype of the current machines is said to have been a vending machine dispensing candies and bubble gum that appeared in the United States around 1880. That evolved into what was known as the gumball machine. This machine was improved, and free gifts came to be supplied together with the candies and bubble gum. At first these free gifts did not come in capsules but were bound in with the candy or whatever. For that reason, apparently there were a lot of breakdowns. So in 1956 a capsule was developed in the United States that was both hygienic and less breakable, and capsule toys were born. Then American makers of that time looked to Japan and Hong Kong in search of highly skilled artisans capable of making toys that could fit into these capsules.
     In response to their popularity in the United States, Japan began to import capsule toys from that country in 1965. At that time almost all the toys were cheap, lightweight, and designed for kids. They spread throughout the country in the 1970s, with such items as supercar erasers and Kinnikuman erasers becoming all the rage in the late 1970s and 1980s. Among them, there were some toys that were rather dubious, such as erasers looking like (but not quite the same as) popular characters and oddly transforming robots, but most kids did not seem to bother and became hooked.
     In Japan, things like anime and manga, which in other countries were thought to be only for kids, had developed into new and high-quality forms of culture. Likewise, even though they were seen in other countries as nothing but inexpensive toys for children, in the 1990s and thereafter not only capsule toys for children but also more elaborate and high-quality items for adults were planned and manufactured in Japan.
     In 2012 a series called Fuchico on the Cup was launched. This series, which became a huge hit, featured a female figure in a variety of unique poses, sitting or hanging, designed to be placed on the edge of a cup. The series was so popular that later Fuchico books were published and exhibitions held. Around this time, lots of items considered to be interesting and topical for young people and adults were developed.
     Traditionally Japan excels in miniaturization. Since ages ago there have been seal cases with fine decorations made by lacquer or gold techniques, as well as netsuke ornaments, tiny dolls and their accessories, and bonsai. More recently we have seen transistor radios, the Walkman portable audio player, plastic models, and figurines. The capsule toys made by Kaiyodo, which is famous for its figurines, include Buddhist statues, local toys of Japan, dinosaurs, and tanks. They are tremendously popular for their elaborate detail. Capsule toys began as toys for children, but nowadays they seem to be enjoyed even more by teenagers and adults as collectors’ items.
     As of May 2022, examples of especially popular items include the Ikimono Daizukan (The Diversity of Life on Earth) series, a cat penholder, push-buttons, and items in which the capsule itself is part of the figurine. In addition, as one genre, collaborations with other companies are popular as well. For example, collaborations with restaurants and food product makers have produced miniature food samples, and a tie-up with a camping-gear maker has led to miniature items for camps.
     New products are being developed one after the other, and once they are sold out, they are replaced by new ones. So if you see something you like, you have to purchase it on the spot, otherwise you may never see it again. It’s a once-in-a-lifetime chance! Unusual capsule toys that have become topical recently include such usually inconceivable items as ID photos of complete strangers and letters from a grandpa and grandma. Such items often become talking points on social media. There are also items limited to certain tourist spots and limited-time offers, which are popular among collectors.