23 Jun 2021
Posted in Packaging
Japanese packaging industry to reach 172.3 billon units in 2025, forecasts GlobalData
The packaging industry in Japan is forecast to reach 172.3 billion units in 2025, registering a compound annual growth rate (CAGR) of 0.7% during 2020-2025, says GlobalData, a leading data and analytics company.
GlobalData’s report, ‘Japan Packaging Industry – Market Assessment, Key Trends and Opportunities to 2025’, reveals that the sector is majorly driven by growth in the rigid plastics packaging, which is forecast to register the fastest volume CAGR of 1.7% during 2020-2025. Rigid plastics was the most consumed pack material in the Japanese packaging industry and accounted for a market share of 34.3% in 2020. It was followed by flexible packaging, which is projected to record a CAGR of 0.5% over the forecast period.
Monika Bargla, Consumer Analyst at GlobalData, says: “Owing to the long working hours and busy lifestyles of Japanese consumers, there has been an increase in demand for convenient and portable pack sizes that facilitate on-the-go consumption, especially in the food and beverages industries. Furthermore, as people become more health-conscious they demand packs which allow for portion control. This is, in turn, driving the demand for rigid plastics pack material, with screw top closures, in the non-alcoholic beverage industry.”
Food industry was the largest end user in the Japanese packaging industry and accounted for a market share of 47.3% in 2020. It was followed by non-alcoholic beverages and alcoholic beverages industries with shares of 32.1% and 10.5%, respectively, in the same year.
Non-alcoholic beverages industry was leading in terms of usage of rigid plastics, with a share of 47.8% in 2020. It was closely followed by food industry which accounted for a share of 45.5% in the same year.
Ms Monika concludes: “Japanese consumers today have more knowledge of issues related to sustainability, ethical practices, and the environment than ever before, which has wide-reaching implications for consumer goods companies. They are holding companies to account for their ethical and environmental practices and making purchase decisions based on companies’ actions. Consequently, an increasing number of brands in Japan are enhancing their perceived social and environmental responsibility by intensifying commitments toward recycling and moving beyond plastic packaging materials where possible.”