Market Overview

The domestic package printing market was valued at 1,520,427 million yen in FY2024, up 2.2% from the preceding fiscal year (based on the sales of businesses). Continued weak consumer spending due to repeated price hikes stagnated demand in the food sector, a key segment of the package printing market. However, with fewer occasions requiring face masks and a growing focus on self-care, demand for packaging in OTC drugs and cosmetics stayed resilient.

In addition, demand in the prescription drug segment rebounded, particularly for generic drugs. This recovery was driven by the medical fee system revision by the Ministry of Health, Labour and Welfare (MHLW) in October 2024, which promoted the use of generic drugs (also referred to as follow-on or off-patent drugs) *. As a result, demand for paper containers for generic drugs rose sharply in the second half of FY2024. Combined with the converters’ ongoing efforts to pass higher fuel, logistics, and labor costs on to end prices, the market is indicating an upward trend.

*Source: MHLW  https://www.mhlw.go.jp/stf/newpage_39830.html   (The site is in Japanese only)

Noteworthy Topics

Lowering Environmental Impact

Flexible packaging converters are working to reduce environmental impact by making changes in their production methods and delivering more eco-friendly packaging. A key initiative has been the adoption of solvent-free production equipment, particularly nonsolvent lamination systems. While some challenges remain (in areas such as performance and material handling,) these systems are garnering attention as an effective way to cut volatile organic compounds (VOCs) emissions.

The market is also seeing the introduction of new printing technologies. Flexographic printer using solvent ink can significantly lower VOC emissions compared to conventional printers, while EB (electron beam) offset printers, which use (EB) to cure inks and coatings, offer the combined benefits of zero VOC emissions and substantially reducing CO2 emissions compared to gravure printing.　Although EB offset printing is not yet widely adopted, commercial use is expected to grow.

In recent years, there has been an increase in the use of inkjet digital printers with water-based pigment inks for flexible packaging films. Some converters are already experiencing higher sales from water-based inkjet production. The role of water-based inkjet printing as a future market driver is still under observation.

Future Outlook

Size of the domestic package printing market in FY2025 is projected to grow to 1,544 billion yen, up 1.6% from the previous fiscal year (based on the sales of businesses).
The demand outlook for FY2025 is moderate. Once consumers move past their cautious spending habits aimed at protecting household budgets, the food sector is expected to regain some momentum. However, a dramatic shift in demand trend is unlikely. Meanwhile, persistent increases in operating costs suggest that the converters may once again pass these higher costs on to end prices in FY2025. This price adjustment is expected to further expand the size of package printing market.

Research Outline