Navigating the Digital Era: The Sustainable Future of Japan's Paper Recycling Industry

The crucial role and future prospects of Japan's paper dealers in supporting the paper industry.

Traditionally, paper has been produced from wood pulp. However, in contemporary times, over 60% of the raw materials for newspapers and magazines are sourced from recycled paper. Utilizing recycled paper contributes to forest conservation, effective energy use, and combating climate change.

The paper recycling sector is an integral part of the paper industry, with paper dealers playing a pivotal role. There are more than 2,000 paper yards across Japan, handling the collection and recycling of paper and supplying raw materials to paper manufacturers.

In Japan, the household paper recycling rate reached about 85% in 2020, with a utilization rate of about 67%, ranking among the highest globally. Japan's unique system of separate collection ensures the high quality of recycled paper.

However, the surge in digitalization, particularly the decline in magazine and newspaper publications, has led to a decrease in paper supply, affecting the price of paper exports. While China was a major export destination, environmental regulations have shifted exports towards Southeast Asian countries.

The reduction in paper supply challenges the operation of paper yards, leading some to close down. Despite these challenges, the industry is evolving with remarkable new strategies. These include diversification into different sectors, handling a variety of recyclable goods, forming joint ventures, and establishing unique collection systems.

Our main exports to Indonesia include corrugated cardboard, magazines, high-quality paper, and boxboard cuttings. We are also exploring new varieties in response to market demands.

The sustainable future of the paper recycling industry hinges on maintaining high-quality standards to secure demand both domestically and internationally. The industry's commitment to cooperation and innovation is key to meeting this challenge.

(Reference data 1) Corrugated cardboard (OCC), magazines (OMG), high-quality paper (SOP), boxboard cuttings (BBC)

(Reference data 2)

Also of note are the regulatory requirements surrounding recycled paper. The rising interest in sustainability has seen a shift towards paper recyclability. As a result, there are now stricter regulations to ensure paper products can be safely recycled. For instance, recycled corrugated cardboard can be used to make food contact materials. Traditionally this was achieved by coating the paper with a wax.

This wax however renders the paper unrecyclable. This has resulted in the need to develop alternative coating solutions. To ensure that these solutions are safe, the finished products must be tested. Cotecna is able to carry out various tests to determine the quality, safety and recyclability of recycled paper.

To learn more about recycled paper testing or to request for a quote, please contact us.