Japan has long been recognized for its technological innovation and dedication to sustainability, which has expanded into its packaging industry. Sustainable packaging is becoming a focus on the market as the country continues to face challenges such as population decline and climate change.
In 2023, Japan’s sustainable packaging market reached US$16.2 billion, due to growing demand minimizing environmental impacts.
However, the market growth is slower than expected, and various economic and social factors affect its trajectory.
Sustainable packaging refers to the use of materials that have the smallest environmental footprint throughout the life cycle. This includes packaging materials made from renewable resources and packaging materials that are easy to recycle or composted.
In Japan, sustainability has become a priority for consumers and businesses, prompting companies to seek environmentally friendly packaging solutions.
Although strong in Japan, the sustainable packaging market in Japan has grown by a CAGR of 1.4% from 2018 to 2023. Despite this modest growth, sustainable packaging is expected to remain an important area of focus for businesses looking to meet consumers’ demand for environmentally friendly products.
The market is expected to continue to expand, despite a slow pace, with a value of $17.4 billion by 2028.
Several factors have led to a slow growth rate in Japan’s sustainable packaging market. An important factor is the decline in the country’s population.
According to UN data, Japan’s population decreased by 0.53% in 2023, totaling 123.3 million people. The decrease in population size has led to a decrease in demand for packaged goods and has expanded the demand for packaging materials.
Another key factor is the country’s economic slowdown.
The growing focus on climate change has exacerbated pressure on businesses to adopt sustainable practices, but Japan’s economic environment, including falling one-time revenue, makes companies more challenging, prioritizing sustainability in packaging.
Consumers are increasingly looking for affordable options, which sometimes means choosing lower sustainable packaging alternatives.
Japan’s sustainable packaging sector is dominated by several major players who innovate and respond to the growing demand for environmentally friendly solutions.
