The Japan flexible packaging market is projected to grow at a CAGR of 6.20% during the forecast period.
The market is expected to surge in the country, due to the rise in the adoption of flexible packaging solutions for various end-users and sectors, such as food & beverage, pet food, personal care, and others. According to the data given by the Flexible Packaging Association, flexible packaging in Japan had a relative market size of over 72,000 million units in 2019. The flexible packaging demand is expected to surge in the home and personal care segment, due to the adoption of more innovative solutions in packaging. The Food & Beverage sector has also been witnessing a substantial surge in the demand for flexible packaging solutions, in the past few years. With the aging population, there has been a rise in the demand for foods offered in smaller and flexible packages.
There have been a substantial number of firms that have been offering flexible packaging solutions to their customers. For instance, Rengo Group, one of the imperative players in the market, has been offering a range of flexible packaging, which also includes cellophane, molded packaging, and film packaging. The company offers flexible flat bags, standing pouches, for respective products. Other firms and corporations have also been offering a considerable number of flexible packaging ranges and solutions. For instance, Takigawa Corporation has become a pioneer in the flexible packaging industry. The company has been offering products for various sectors, such as home and personal care, food & beverage, and others. With the rise in the demand for innovative and advanced solutions, the market is expected to surge at an exponential rate, during the forecast period.
Growth Factor:
Increasing demand in convenience stores
The market is expected to surge in the coming years, due to the rising demand for flexible packaging solutions in convenience stores. According to the Japan Franchise Association, the country has around 55,000 convenience stores that have been generating approx. US$100 billion in sales, per year. With the increasing aging population and the decline in the country’s birthrate, convenience stores have become a leader in a social and societal change in the country. According to the data given by the United Nations and the World Bank, 28.39% of the population in the country has been aged 65 or above. Consumer stores have been offering foods and other products in smaller and flexible packages, due to the decline in the appetite and demand for bulk products. Moreover, the Japan Franchise Association had stated that single households represent around 35.3% of the total country’s households, thereby increasing the demand for smaller flexible packaging solutions. Several firms have been offering flexible packaging solutions and products to their customers. For instance, Toppan has been making considerable investments in flexible packaging production, especially for fast-moving consumer goods, such as food & beverages, and others. Other players, such as Nippon Group, have also been investing a considerable sum of capital into the development of flexible packaging solutions for respective sectors.
Key development:
The advent of the coronavirus pandemic was felt across numerous industry verticals in Japan, notably affecting the demand for flexible packaging in the country. With the implementation of lockdown to contain the spread of the deadly virus, a halt in operations across several industry verticals impacted the market. Production across personal care, consumer electronics, and others was severely affected by the lockdown, resulting in a contraction in demand for flexible packaging. However, demand across food and beverage and pet food surged, supporting the market.
Market Segmentation: