Corrugated Fiberboard Market in Japan: Key Research Findings 2019
Yano Research Institute (the President, Takashi Mizukoshi) has conducted a survey on the corrugated fiberboards market in Japan, and found out the trends by market players, the trend by demand field, and the future outlook.
According to the statistics of Japan Corrugated Case Association, domestic production of corrugated fiberboards in 2018 attained 14,394.26 million square meters, 101.3% of the previous year. Although the production of corrugated fiberboards for greengrocery decreased in 2018 compared to the previous year due to bad weather including torrential rains in Western Japan, demand for other fields have mostly risen. As the corrugated fiberboard market correlates highly with the national economic trend, it can be said that the market grew in accordance with the moderate economic growth. The rise in demand for beverages as an effect of the extreme summer heat has also drove the increase in demand for the corrugated fiberboards for beverages.
Manufacturers of Containterboard for Corrugated Fiberboards Schedule to Increase Production to Approximately 800 Thousand Tons by FY2021
Containterboard manufacturers raised the price of the containterboards both in 2017 and 2018. On the other hand, the corrugated fiberboard manufacturers have not been able reflect all such cost rise in their product price. Together with the influence of steep rise in the distribution cost, the corrugated fiberboard manufacturer’s profitability is declining.
Meanwhile, from FY2019 to FY2020, the material paper manufacturers schedule to expand their production by approximately 800 thousand tons per year. Even if the demand for corrugated fiberboards expands for the time being, demand-and-supply of the material paper to the end products may lose its balance at least temporarily
As to 2019, the demand for the corrugated fiberboards for beverages slowed down because the sunshine hours were extremely short during June to early August period especially in Kanto region, compared to the same period in previous years. Still, according to the statistics, the demand in January - June stayed almost flat, with 0.2% decrease from the same period of the previous year (based on production).
While there are quite a few concerns such as the consumer tax hike in October 2019 and US-China trade friction in international affairs, the production volume of domestic corrugated fiberboards in 2019 is projected to attain 14,508 million square meters, 100.8% of the previous year. Market transition is forecasted to stay firm, with CAGR from 2018 to 2023 achieving 0.57% and annual production volume reaching 14,808 million square meters by 2023. Potential growth rate is estimated as little over 1% for the domestic corrugated fiberboards; however, the actual growth rate is likely to fall slightly below the potential growth rate.
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