Compact and Interchangeable Lens Camera Demand Is Diverging

The resurgence of compact cameras is well documented, with consumers flocking back to small, pocketable dedicated cameras. Even as smartphone image quality has continued to improve, photographers are again seeking a special, bespoke photographic experience. A new report from BCN+R in Japan notes that not only are compact camera sales increasing, but interchangeable lens camera demand is starting to wane.

“Interchangeable lens cameras are starting to run out of steam,” BCN+R says in a machine-translated article. “Sales have been declining year-on-year since last summer. Interchangeable lens cameras account for more than 60% of the market in terms of sales value.”

BCN+R notes that every camera manufacturer focuses on interchangeable lens cameras, even those that either never gave up on compact all-in-one cameras, like Fujifilm, or those who are returning to them, like Panasonic and Canon. High-priced interchangeable lens cameras have been instrumental for camera company profits in recent years, but the post-pandemic rebound may have run its course.

BCN+R speculates that one driving force behind the decreased demand for expensive interchangeable lens cameras is inflation, poised to only worsen in the coming months as countries like the United States ramp up the use of tariffs. Although it originally looked like only China would be affected regarding camera manufacturing, American tariffs now appear to be coming to all countries, including Japan.

Although BCN+R’s charts paint a bad picture for expensive, premium interchangeable lens cameras, the story is much different for relatively affordable compact cameras.

“Meanwhile, compact cameras are growing. Since last November, sales have been increasing by double digits year-on-year. As of February, compact cameras accounted for 71.0% of sales in terms of unit sales and 37.8% in terms of sales value. They are still the mainstream camera in terms of unit sales,” BCN+R writes. The retail analyst maintains that there is still a robust demand for cheaper, smaller cameras that can take high-quality photographs.

It’s fascinating to consider how difficult it is for camera manufacturers to respond to this changing consumer preference. For many years, the compact camera was decreasingly popular because of the proliferation of smartphones. In response, manufacturers made fewer compact cameras, fazing out many product lines altogether. Some major players are now scrambling to hit the switch and start making the compact all-in-one cameras many consumers want again.

For example, Canon told PetaPixel at CP+ this year that it is now cautiously ramping up its production of compact cameras again. However, it takes time to make cameras and adjusting production capacities on the fly is not so simple. It will be interesting to see how much companies like Canon reorganize resources toward compact cameras and whether market demand will have shifted elsewhere when compact camera supply meets current demands.

As BCN+R notes, companies are not just restarting production of familiar compact cameras, but releasing all-new ones that better respond to current consumer demand for hybrid features and high-quality video. Sony’s vlogging cameras, like the ZV-1 II, have long straddled the line between being a compact photo camera and a modern content creator’s dream hybrid camera. Canon’s new PowerShot V1 targets that same space and Nikon hopes to keep people from going back to smartphones with its new Coolpix P1100, a super-zoom camera that has a 24-3000mm equivalent zoom lens. While the P1100 is definitely not compact, it is a relatively affordable way to capture entirely different images than what’s possible on a smartphone.

Image credits: Featured image created using an asset licensed via Depositphotos.