Japanese paper and publishing sectors face structural shifts amid declining demand

The Japanese publishing and paper industries are facing significant structural shifts due to digitalization and a decline in paper demand. According to the Publishers Association of Japan, estimated sales of printed books and magazines for August 2026 fell by 2.6% year-on-year, totaling 61.434 billion yen. While book sales saw a slight decrease of 0.3%, magazine sales dropped by 5.7%.

In the paper manufacturing sector, the decline in demand for graphic paper—such as newsprint and magazine paper—has been drastic, falling by more than half over the last 20 years. Consequently, the industry's focus has shifted toward cardboard, which now accounts for approximately 40% of domestic paper demand. This shift has altered the competitive landscape among major manufacturers. Oji Holdings has maintained its lead by focusing on the board paper sector, while Nippon Paper Industries, which maintains a higher ratio of traditional paper products, has seen its market valuation fall below competitors like Rengo and Daio Paper.