Market Trends of Japan Paper Packaging Industry
Paperboard is Anticipated to Witness Significant Growth
- The paper and paperboard packaging market in Japan is experiencing healthy growth. Beverages and packaged food growth have fueled the demand for corrugated packaging in the country. Japan's growing processed food industry is also expected to act as one of the critical drivers for the paperboard packaging market.
- The market is led by the massively growing adoption of paper packaging in response to reduced plastic usage and the respective strategic developments. Furthermore, major paper manufacturing companies in the region aiming to capitalize on developments to cater to the market are expected to support market growth.
- 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.
- According to the Organic Trade Association, in 2021, the retail value of the organic packaged food market in Japan accounted for USD 416.6 million. The market size is expected to reach USD 427.1 million in 2025.
- Organic food products often require packaging that aligns with their eco-friendly image. Recyclable and biodegradable paperboard is a popular choice for such products. As the organic packaged food market grows, more companies are expected to use paperboard to meet consumer preferences for sustainable packaging.
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Retail is Observing Notable Growth
- Japan boasts one of the world's fastest-growing e-commerce markets, with consistent development and the presence of global giants like Rakuten and Amazon. The country also hosts supermarket e-commerce platforms such as Ito-Yokado and Markets, which promote paper packaging use.
- The growth of e-commerce has significantly increased demand for packaging materials. Many e-commerce businesses prefer paper packaging due to its environmental friendliness and cost-effectiveness.
- Paper packaging typically has lower recycling costs than materials like plastics and glass. Additionally, there is a substantial market for recycled paper, with packaging being one of many industries extensively using recycled paper products.
- The high demand for recycled paper makes it less expensive than alternative materials. Paper packaging's lower recycling cost makes it an attractive option for e-commerce and retail businesses aiming to reduce packaging expenses while supporting sustainable practices.
- According to the Ministry of Economy, Trade and Industry, commercial sales in the retail industry accounted for USD 110.67 billion in December 2023, a slight increase from USD 94.01 billion in April 2023. This rise in sales may lead retailers to expand their product ranges, potentially increasing demand for diverse packaging solutions, including specialized paper packaging options such as custom-designed boxes and eco-friendly materials.
