Packaging Industry in Japan
Euromonitor International's Packaging Industry in Japan Euromonitor International's World Market for Glass Packaging report offers insight into key trends and developments in global and regional consumer glass packaging. It provides analysis of the major growth markets and end-use applications, together with analysis of the corporate strategies of the leading companies.
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Chapters: 6 | Tables: 41 | Publication date: Mar 2007
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Executive summary
Consolidation just around the corner
On the front pages throughout August and September of 2006 was the takeover attempt of Hokuetsu Paper Mills by Oji Paper. The hostile action failed, but analysts regarded this attempt as a sign that the Japanese packaging industry is to undergo fierce consolidation in the near future. This consolidation is needed to answer the growing demand of innovation and to secure the grip on natural resources. Cooperation, acquisition or merger, even with foreign packaging companies, could be the answer. The advantages would be sharing costs, a geographical spread of interests, exchange of technical knowledge and gaining knowledge of foreign markets. It will mean less dependency on the decreasing domestic market and provide the Japanese packaging industry with a serious role on the international stage.
Regulations are strict...on paper
While Japanese legislation may on paper appear to be similar in scope to American and European regulations, in practice enforcement is partial and irregular. Recycling rates for household waste are well below those of the United Sates, for example. Japan does not recycle most PET bottles itself, but is a major exporter of used PET bottles to its neighbouring countries. The Japanese recycling companies that build huge factories are being confronted with a shortage of used PET bottles. Moreover, Japan faces a rapidly ageing population. Within 20 years one-third of the population will be aged 65 or over, which will have an impact regarding packaging design and use of materials. Growing calls for food safety legislation have also increased the complexity of the legislative environment for the Japanese packaging industry, but in light of the government’s inability to enforce recycling, the effectiveness of these legislations remains to be seen.
Outsourcing the Trojan horse?
2006 saw continued increases in the price of crude oil. The packaging industry increasingly faces the possibility of a shortage in basic materials, leading to rising prices. Profit margins have also been declining. While outsourcing to countries within Japan’s sphere of economic interest, such as China, Korea and South East Asian countries, seems to be the answer, there are viable concerns raised by analysts regarding the negative impact on Japan’s own packaging industry of exporting packaging expertise to other nations. The long term impact of the outsourcing remains to be seen.
The answer: added value
The chances for the Japanese packaging industry lie in the added value. With food safety in mind and the ageing population that will probably need a growing number of pharmaceutical products, there is a chance for the packaging industry to make a difference. Investing in new technologies is a must for players in this environment.
Table of contents
EXECUTIVE SUMMARY
Consolidation just around the corner
Regulations are strict...on paper
Outsourcing the Trojan horse?
The answer: added value
MARKET BACKGROUND
PACKAGING LEGISLATION
Legal requirements
HACCP more important than ever
Labels become information carriers
Recycling and the environment
Recycling law
Guidelines
Overcapacity in recycling factories due to exports
Exports will continue
New ways to recycle PET in Japan
Recycling by producers
Recycling, a waste?
Plastic is not fuel...yet
Aluminium cans are...
Government considers extending labelling requirements to imported goods
Laws for import too
Refuse to pay the recycling fee
Law without enforcement
Charging for shopping bags
Beat the refuse habit
New law, but who sets the regulations?
METI in a lesser role
Households separate refuse
Japan wants to recycle more
Households will produce less refuse for financial reasons
CORPORATE ACTIVITY IN PACKAGING
Added value
Japan sees growing imports
Resin suppliers corner small packaging companies
Japanese companies have three tactics
High levels of cash
Larger than Japan
PET bottles are hot
Keep it fresh
Outsourcing and licensing
Coming years demand inventive solutions
Ageing Japan demands fresh look towards packaging
Universal design packages will gain ground
New lifestyles and cost saving measures influence business
More PET bottles lose weight
Vending machines – the secret weapon behind Japan’s packaging industry
From outside to inside
Seeking the ultimate while preserving the old
Technical innovations, added value
New biodegradables emerge but acceptance remains low
Biodegrables will gain territory
New biodegradables
More biodegradables to come
Smart packaging promising but still expensive
Chlorine-free packaging emerges
Packaging that interacts
RFID still in the waiting room
Consolidation is near
Added value
MAJOR MARKET PLAYERS (LOCAL COMPANY PROFILES)
MITSUBISHI PLASTICS INC
Strategy
Packaging is key business
From rigid to flexible
Environmental concerns
Copolyester, an alternative to PVC
Summary 1 Mitsubishi Plastics Inc: Operational Indicators 2005/2006
Summary 2 Major End-Use Markets for Mitsubishi Plastics Inc by Pack Type 2005
KUREHA CORPORATION
Strategy
Financial forecasts
Results and forecast 2007
Packaging materials division
Summary 3 Kureha Corporation: Operational Indicators 2005/2006
Summary 4 Major End-Use Markets for Kureha Corporation by Pack Type 2005
CHUO KAGAKU CO LTD
Licensing and export
Affiliates
Environmental approach
Summary 5 Chuo Kagaku Co Ltd : Operational Indicators 2005/2006
Summary 6 Major End-Use Markets for Chuo Kagaku Co Ltd Pack Type 2005
TOYO SEIKAN KAISHA LTD
Competitive environment
Easy-open bottle shaped can
Results in FY 2005 and 2006
Massive gains here to stay?
Strategy on environment
Summary 7 Toyo Seikan Kaisha Ltd: Operational Indicators 2005/2006
Summary 8 Major End-Use Markets for Toyo Seikan Kaisha Ltd. by Pack Type 2005
HOKKAI CAN CO LTD
Three fields of interests
Strategic alliance
New products
Business strategy
Summary 9 Hokkai Can Co Ltd: Operational Indicators 2005/2006
Summary 10 Major End-Use Markets for Hokkai Can Co Ltd by Pack Type 2005
DAIWA CAN CO
Bottle cans
Strategy
Aluminium prices soar
Summary 11 Daiwa Can Co: Operational Indicators 2005/2006
Summary 12 Major End-Use Markets for Daiwa Can Co by Pack Type 2005
FUJIMORI KOGYO CO LTD
Operating under the name ZACROS
Hybrid pouch
Summary 13 Fujimori Kogyu Co Ltd: Operational Indicators 2005/2006
Summary 14 Major End-Use Markets for Fujimori Kogyu Co Ltd by Pack Type 2005
COWPACK CO LTD
Specialised portfolio
Business strategy moving forward
Summary 15 Cowpack Co Ltd: Operational Indicators 2005/2006
Summary 16 Major End-Use Markets for Cowpack Co Ltd by Pack Type 2005
DAI NIPPON PRINTING CO LTD
Summary 17 Dai Nippon Printing Co Ltd: Operational Indicators 2005/2006
Summary 18 Major End-Use Markets for Dai Nippon Printing Co Ltd by Pack Type 2005
UNICHARM CORP
Innovative newcomer
NIHON YAMAMURA GLASS CO LTD
New Yamamura
Business strategy
Recycling activities
Activities abroad
Summary 19 Nihon Yamamura Glass Co Ltd: Operational Indicators 2005/2006
Summary 20 Major End-Use Markets for Nihon Yamamura Glass Co Ltd by Pack Type 2005
ISHIZUKA GLASS CO LTD
Added value
Investments for strength
Summary 21 Ishizuka Glass Co Ltd : Operational Indicators 2005/2006
Summary 22 Major End-Use Markets for Ishizuka Glass Co Ltd by Pack Type 2005
NIHON TETRA PAK K.K.
History
Background of Tetra Pak
Aluminium foil
Brik Square Mini
Recycling is important
Summary 23 Major End-Use for Nihon Tetra Pak K.K. by Pack Type 2005
TOPPAN PRINTING CO LTD
Demand increases
Strategy and new business
Toppan develops clear UV-blocking film for food, drug packaging
Summary 24 Toppan Printing Co Ltd: Operational Indicators 2005/2006
Summary 25 Major End-Use Markets for Toppan Printing Co Ltd by Pack Type 2005
TOKAN KOGYO CO LTD
Packaging & containers
Competitive environment
Summary 26 Tokan Kogyo Co Ltd: Operational Indicators 2005/2006
Summary 27 Major End-Use Markets Tokan Kogyo Ltd for Pack Type 2005
OJI PAPER CO LTD
Company structure
Forecast
Expansion
Legislation a threat?
Activities in China
Prices on the rise following takeover
Summary 28 Oji Paper Co Ltd: Operational Indicators 2005/2006
Summary 29 Major End-Use Markets for Oji Paper Co Ltd by Pack Type 2005
NIPPON PAPER GROUP
Vision 2015
Nippon Paper becomes more aggressive
Miscalculations in oil price
Investments
Buy stocks
Shared costs
Summary 30 Nippon Paper Group: Operational Indicators 2005/2006
Summary 31 Major End-Use Markets for Nippon Paper Group by Pack Type 2005
RENGO CO LTD
Path to growth
Takeover
Summary 32 Rengo Co Ltd: Operational Indicators 2005
Summary 33 Major End-Use Markets for Rengo Co Ltd by Pack Type 2005
MAJOR MARKET PLAYERS BY PACK TYPE
RIGID PLASTIC
Innovation and legislation
Summary 34 Major Rigid Plastic Packaging Manufacturers by Pack Type 2005
METAL
Aluminium becomes expensive throughout the world
Summary 35 Major Metal Packaging Manufacturers by Pack Type 2005
FLEXIBLE PACKAGING
More players emerged to meet growing domestic demands
Summary 36 Ranking of Major Flexible Packaging Manufacturers 2005
GLASS
Three leading players head-to-head in narrowing glass packaging environment
Summary 37 Ranking of Major Glass Packaging Manufacturers 2005
LIQUID CARTONS
Shifting to other markets by innovation?
Summary 38 Share of Major Liquid Carton Manufacturers 2005
PAPER-BASED PACKAGING
Consolidation moves
Summary 39 Major Paper-based Packaging Manufacturers by Pack Type 2005
MAJOR PLAYERS – CLOSURES
Closures essential business for Daiwa Can Co
Summary 40 Ranking of Major Closure Manufacturers 2005
MAJOR PLAYERS – WOOD
A fragmented sector
APPENDIX
APPENDIX 1 – BIODEGRADABLE PLASTIC DEFINITION
BioPolymer
Synthetic Polymer
Modification of Natural Polymer
APPENDIX 2 – BIODEGRADABLE PLASTIC USAGE
Summary 41 Biodegradable Plastic Usage