Market Trends of japan adhesives Industry
With the advancement in plastic recyclability and demand from food and beverage industry, plastic packaging to lead the packaging industry
- The Japanese packaging industry registered significant growth in recent times and contributed 1.13% to the nation's GDP owing to the growing trend for protecting and enhancing products' safety and longevity. The food & beverages sector contributes a major share to the Japanese packaging industry due to its complex and evolving nature. The Japanese government has set a target of achieving 45% sufficiency of food products by 2025, likely contributing to the packaging industry over the coming years. Moreover, the aging population is expected to propel packaging demand as elderly consumers prefer packaged and prepared food for easy access.
- In line with the COVID-19 pandemic, the country-wide lockdowns and temporary shutdown of manufacturing facilities caused several issues, including disruptions to the supply chain and imports & exports. As a result, the country's packaging production declined by 6% in 2020 compared to the previous year, significantly affecting the market. Packaging production is majorly driven by plastic packaging in the country, which accounts for around 86% of the packaging produced in 2021. With the growing demand for flexible and rigid packaging for various applications and plastic recycling advancements, the plastic production segment is likely to register the fastest growth, with a 3.94% CAGR during the forecast period.
- The growth of the Japanese packaging industry is mainly attributed to the rising per capita income, improvement of the supply chain, and increasing e-commerce activities over the years. The growing attention to food safety and quality in post-pandemic times across the nation is likely to drive the food processing industry, which will further propel the packaging demand over the coming years.
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In addition to being home to renowned automotive manufacturers including Toyota, Honda, and Nissan, the demand for EVs is rising the automotive industry
- Japan is home to the world's largest automotive companies, such as Toyota, Honda, and Nissan, of which Toyota is the world's second-largest company in terms of market capitalization. Toyota's sales revenue showed a 15% Y-o-Y growth in the fiscal year ending March 2022, suggesting an increasing trend of automotive market growth in Japan. Passenger vehicle sales in Japan are expected to reach 3951.71 thousand units by 2027.
- Due to the impact of the COVID-19 pandemic, the sales of automobiles reduced drastically because of nationwide lockdowns, overall economic slowdown, decreased exports, supply chain disruptions, etc. These factors led to a decrease in the sales volume of automobiles in 2020 as passenger car sales fell from 3997 thousand in 2019 to 3841 thousand in 2020.
- Japan witnessed a decrease in automotive market revenue in 2021 compared to 2020 because of the increasing awareness of environmental concerns and increased use of public transport in the cities of Japan. The government is also supporting the cause by making public transport more efficient than before. The railways cover nearly 72% of the public transportation system in Japan.
- Japan witnessed peak sales of electric vehicles in 2017 because of the launch of new plug-in hybrid vehicles, which appealed to consumers. The electric vehicles segment of the automotive industry is expected to record a CAGR of 24.39% in 2022-2027. The number of electric vehicles sold in Japan is expected to be 165.5 thousand by 2027. This will lead to an increase in the overall revenue of the automotive industry in Japan.
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OTHER KEY INDUSTRY TRENDS COVERED IN THE REPORT
- Spacecraft and defense aircraft activities to boost the aerospace sector in Japan
- Demand for sports footwear is increasing due to rising awareness on fitness among people
- Rising commercial and infrastructure projects to lead the construction industry
- Rising single-family households lead to furniture sales rise and will lead to the demand for woodworking and joinery
