Japanese place high importance on quality packaging

By Michelle Yeomans

- Last updated on GMT

Japanese place high importance on quality packaging

Related tags Compound annual growth rate

According to a new report by Canadean, demand for high quality and aesthetically pleasing packaging will aid the growth of the Japanese cosmetic plastics industry.

The market researcher's analysts say consumers place high importance on quality packaging, are very engaged in the presentation of products and need to be convinced that packaging is flawless with particular regards to detail, colour, and labelling.

The firm's most recent report: ‘Latest Trends and Key Issues in the Japanese Retail Packaging Market’ places flexible and rigid plastics packaging demand in Japan to increase by 6.9 billion packs between 2012 and 2017.

This, according to Canadean senior analyst Ronan Stafford, “will drive the wider use of plastic packaging and the development of more innovative plastic pack formats.”

Consumers demand innovative packaging that does not compromise quality

A demanding population has created a spike in the use of plastic packaging for items such as beauty, drinks, luxury cosmetics, and health and beauty products.

Demand from skin care and make-up sectors alone will grow at a Compound Annual Growth Rate (CAGR) of 4.2% and 2.0% respectively during 2012 to 2017.

As these sectors grow, Stafford says manufacturers should remain conscious of the quality, as well as the look and feel, of packaging materials.

This will in turn see demand for rigid plastic bottles, jars, and tubs, increase significantly over the next few years.

"This demand comes from the health and beauty sectors in particular, as Japan’s increasingly ageing population requires packaging that is easy and convenient to use, as well as aesthetically pleasing,"​ says the senior analyst.

Packaging sales skyrocket on a global scale

Market researcher Lucintel places the global packaging industry at an estimated $133 billion in 2017, growing at a CAGR of 5.3% over the next five years.

The U.S., Japan and major European countries are those pinpointed as driving the development of cosmetics packaging while growth within emerging markets in Asia, Latin America, the Middle East and Africa will heighten consumer demand.                          

During the period of 2006-2011, Lucintel notes that Asia Pacific emerged as the highest growth potential region driven by increased income levels and urbanization and that the region continues to “dominate the industry and is expected to retain its leading position during 2012-2017.”

Major growth challenges for the overall packaging sector identified in the report include availability of substitutes such as plastic and glass, enhanced environmental regulations, volatility in raw material prices, an increase in income levels, energy and transportation costs and industrialization and urbanization. 

Related topics Market Trends East Asia Packaging

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