Market Trends of Japan Paper Packaging Industry
This section covers the major market trends shaping the Japan Paper Packaging Market according to our research experts:
The Processed Food and Beverage Industry to Drive the Demand in the Market
- Japan is considered one of the significant consumers of paper-based products across various industries, including newsprint, packaging, printing and communication, sanitary, and other miscellaneous applications. There has been a recent trend of adopting paper in the packaging industry, owing to consumers' awareness about sustainable packaging, concerns associated with deforestation, and raw material availability, among others.
- For instance, the food manufacturers in the region have started to realize the drawbacks associated with plastic wrapping and are preparing to switch to paper packaging.
- Also, in line with the announcement of Nestle Japan's plan to use 100% recyclable packaging by 2025, Nestle Japan released new packaging for its famous miniature KitKat Chocolate bars featuring origami paper instead of plastic materials. Also, the new paper packaging is set to receive the Forest Stewardship Council certification and is fully recyclable.
- Furthermore, to counter the environmental concerns and to drive sustainability, the company expects to drop around 380 metric tons of plastic each year, as it plans to release further paper bags for its other products, such as normal-sized KitKat, multipacks, and single-layer paper wrappers for individual KitKat by 2021.
- Also, NGOs are running campaigns, such as PlasticMonsters, with around 1,834,646 people filing the petition to stop the production of single-use plastics, targeting brands, such as Nestle and Unilever, responsible for not recycling 90% of plastic. This factor is forcing companies to switch to environmentally friendly packaging. Nestle, Japan, is currently exploring the scope of new packaging for other brands and products. It is also actively exploring materials to reduce the burden on the environment further, as it sells around 4 million products daily.
- As per the Ministry of Economy, Trade, and Industry, Japan, in 2021, the consumption volume of corrugated cardboard boxes for processed foods and beverages in Japan amounted to around 4.1 billion square meters. The consumption volume of corrugated boxes increased slightly compared to about 3.9 billion square meters in 2017.
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Corrugated Box Segment to Hold a Major Market Share
- The corrugated box segment is expected to hold a significant market share, owing to the biodegradable and non-toxic properties of corrugated boxes, added with their lightweight and durability, which make them one of the most preferred choices for packaging.
- Japan is known to have one of the fastest-growing e-commerce markets in the world, with stable growth over the years and the presence of global giants, such as Rakuten and Amazon. The country also has a presence of supermarket e-commerce sites, such as Ito-Yokado and Markets, which drive the adoption of corrugated boxes for products, such as beverages and processed foods.
- Further, in Japan, the collection rate of corrugated boxes is reported to be as high as 95%, added with the recycling rate of 90% at the corrugated cardboard factories, which drives the manufacturers to clear costs and improve the processing capacity. Also, the added flexibility of corrugated boxes that can be used as exterior materials and processed into the interiors of complex structures drives their demand in the region.
- Additionally, amid COVID-19, the manufacturers of corrugated boxes worldwide are working to keep the transport packaging flow to the makers of essential products, including food, medical, and other pharmaceutical products, further driving the growth of the market.
- However, due to the market saturation for materials, such as corrugated packaging, and numerous manufacturers of corrugated boxes in Japan, local vendors are looking out for global expansions. For instance, Nippon Paper, one of Japan's biggest pulp and paper companies, purchased the Australian and New Zealand cardboard box manufacturing division of Orora. It also bought a few paper cups and food packaging businesses in Vietnam and India as a part of its growth strategy.
- According to the Ministry of Economy, Trade, and Industry of Japan, in 2021, the production value of corrugated boxes in Japan amounted to around 686.8 billion Japanese yen. The production value increased compared to about 620.1 billion yen in 2016.
