Japan Paper Packaging Market - Growth, Trends and Forecasts - (2020 - 2025)
The Japan Paper Packaging Market is estimated to grow at a CAGR of about 6% over the forecast period 2020 to 2025
Japan is the world's second-largest producer of per capita of plastic waste, standing just behind the US added with the tighter international regulation in Japan is expected to encourage the manufacturers to capitalize on the rising demand for environmentally sustainable packaging materials such as paper packaging, which can potentially be deployed across various industries.
Seemingly, major plastic bag suppliers in the region, such as Fukusuke Kogyo, are experiencing a decline in demand for plastic bags at groceries store as the customers are legally required to pay explicitly for the bags as the company expects to brace one-third decrease in order soon. Also, the company recently announced that it is currently investing in the development of materials that have lower environmental impacts and also to lower its production cost.
Furthermore, Major paper manufacturing companies in the region, such as Nippon Paper, are aiming to capitalize on the decreasing demand for plastic and have also announced the expansion of paper-based barrier materials world-wide that can protect the products from air and water. The company reports that over the years, the demand for paper and paperboard packaging materials has risen as a replacement for more cost-effective plastics. Currently, paper-based packaging materials account for 70% of its total sales.
As with recent outbreak of global pandemic COVID-19 and announcement of lockdown has led to a surge in demand for the essentials with sanitized packaging.
Also, with the recent study conducted by the New England Journal of Medicine, which suggests the virus could only survive up to 24 hours on the paper-based cardboard packaging as compared to 72 hours on plastic-based packaging is further driving the market growth. For instance, In March 2020, Nestle and DS Smith announced the delivery of 90,000 food packages to hospitals.
Key Market Trends
The Food & Beverage Industry to Drive the Demand for the Market
Japan is considered one of the significant consumer of paper-based products across various industries, including newsprint, packaging, Printing & Communication, Sanitary, and other miscellaneous applications. There's been a recent trend with the adoption of paper in the packaging industry owing to the consumer consciousness of sustainable packagings, 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 the plastic wrapping and are preparing to switch to the paper packaging.
Also, since the announcement of Nestle Japan's plan to use 100% recyclable packaging by 2025, In September 2019, Nestle Japan released new packaging for its famous miniature KitKat Chocolate bars that will now be wrapped with the origami paper instead of using plastic material. Also, the new paper packaging is set to certify the Forest Stewardship Council certification and is fully recyclable.
Furthermore, to counter the environmental concerns and to drive sustainability, the company expects to down around 380 tons of plastic each year, as its plans to release further paper bags for its other products such as normal-sized Kitkat multipacks and single-layer paper wrappers for individual Kitkats by 2021.
Also, NGOs worldwide running campaigns such as PlasticMonsters with around 1,834,646 people filing the petition to stop the production of single-use plastics and targeting brands such as Nestle and Unilever responsible for not recycling 90% of plastic is forcing the companies to switch to environmentally friendly packaging. Nestle, Japan, is currently exploring the scope of the new packaging to other brands and products. They are also actively exploring materials to reduce the burden on the environment further as it sells around 4 million products every day.
Corrugated Boxes to hold major market share
The corrugated cardboard packaging boxes are expected to hold significant market share in the region owing to its biodegradable and non-toxic properties added with its lightweight and durability makes its one of the most preferred choice for packaging. Alongside the corrugated packaging, boxes could be various other applications.
Also, Japan is known to have one of the fastest-growing eCommerce markets in the world with stable growth over the years with the presence of global giants such as Rakuten, amazon among others and alongside with presence of supermarket eCommerce sites such as Ito-Yokado, Markets, among others drives the adoption of corrugated boxes for products such as beverages, processed foods further drives the growth of the market.
Further, In Japan, the collection rate of the corrugated box is reported to be as high as 95% added with the recycling rate of 90% at the corrugated cardboard factories drives the manufacturers to clear costs and improve the processing capacity. Also, with the added flexibility of corrugated boxes that can be used as exterior materials and processed into the interiors of the complex structures drives its demand in the region.
Additionally, amidst the pandemic COVID-19, the manufacturers of corrugated boxes around the world are working to keep the transport packaging flow to the makers of essential products, including food, medical, and other pharmaceutical products further drive the growth of the market.
However, owing to the saturation of the market for materials such as Corrugated packaging due to the presence of numerous manufacturers for corrugated boxes in Japan, the local vendors in the region are looking out for global expansions. For instance, Nippon Paper considered being one of the biggest pulp and paper companies based in Japan after the purchase of Australian and New Zealand cardboard box manufacturing arm of Orora, has also bought a few paper cup and food packaging business in Vietnam and India as a part of its growth strategy.
The market is moderately fragmented with the presence of players, like DS Smith, Graphic Packaging, International Corporation, International Paper Company, RengoSappi, and LimitedTetra Laval among others, which play a vital role in upscaling the rise in demand leveraging the declining demand for plastic packaging and customer' preference towards paper-based packaging. To capture the market share, vendors in the regions are strategizing their business models by enhancing their product lines, collaborations, and acquisitions with a core focus on sustainability.
February 2020: Graphic Packaging International announced the launch of a new line of PaperSeal trays targetted to offer brands and retailers to replace the modified atmosphere and vacuum skin packaging plastic trays with paperboards alternative as part of its vision 2025 to expand and improve the packaging solutions while reducing the impact on the environment and thereby levering its sustainability profile in the industry. The solution is said to utilize 80-90% paperboards and 10-20% film extracted from the sustainably-managed forest.
Reasons to Purchase this report:
The market estimate (ME) sheet in Excel format
3 months of analyst support
Please note: This publisher does offer titles that are created upon receipt of order. If you are purchasing a PDF Email Delivery option above, the report will take approximately 2 business days to prepare and deliver.
Learn how to effectively navigate the market research process to help guide your organization on the journey to success.Download eBook