www.EUbusinessinJapan.eu

Market Situation and Potentials
in Japan for Plastic Recycling
Technologies

September 28, 2023
Rolf Fobker

EU-JAPAN CENTRE FOR INDUSTRIAL COOPERATION - Head office in Japan
EU-JAPAN CENTRE FOR INDUSTRIAL COOPERATION - OFFICE in the EU
Shirokane-Takanawa Station bldg 4F
Rue Marie de Bourgogne, 52/2
1-27-6 Shirokane, Minato-ku, Tokyo 108-0072, JAPAN
B-1000 Brussels, BELGIUM
Tel: +81 3 6408 0281 - Fax: +81 3 6408 0283 - TokyoOffice@eu-japan.gr.jp
Tel : +32 2 282 0040 –Fax : +32 2 282 0045 - office@eu-japan.eu
http://www.eu-japan.eu / http://www.EUbusinessinJapan.eu / http://www.een-japan.eu

This report has been prepared by
ECOS Consult GmbH
Rolf Fobker
Westerbreite 749084 Osnabrueck
Germany
Tel.: ++49 (0) 541 911 909 90
E-Mail: info@ecos.eu
www.ecos.eu

EU-JAPAN CENTRE FOR INDUSTRIAL COOPERATION - Head office in Japan
EU-JAPAN CENTRE FOR INDUSTRIAL COOPERATION - OFFICE in the EU
Shirokane-Takanawa Station bldg 4F
Rue Marie de Bourgogne, 52/2
1-27-6 Shirokane, Minato-ku, Tokyo 108-0072, JAPAN
B-1000 Brussels, BELGIUM
Tel: +81 3 6408 0281 - Fax: +81 3 6408 0283 - TokyoOffice@eu-japan.gr.jp
Tel : +32 2 282 0040 –Fax : +32 2 282 0045 - office@eu-japan.eu
http://www.eu-japan.eu / http://www.EUbusinessinJapan.eu / http://www.een-japan.eu

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Contents
1.

Executive Summary ................................................................................................................................................... 5

2.

Scope of the Report .................................................................................................................................................. 7

3.

Political Strategy and Targets ................................................................................................................................... 84.

Market Situation ..................................................................................................................................................... 11a.

Market Volume ................................................................................................................................................... 11b.

Market Developments and Trends ..................................................................................................................... 12c.

Main Applications in Japan ................................................................................................................................. 15d.

Main Processes in Japan ..................................................................................................................................... 175.

Market Access ......................................................................................................................................................... 19a.

Plastic Waste Collection System ......................................................................................................................... 19b.

Distribution channels .......................................................................................................................................... 22c.

Regulations.......................................................................................................................................................... 24d.

Trade Fairs ........................................................................................................................................................... 25

6.

Major players .......................................................................................................................................................... 26a.

Technology Suppliers / Competitors................................................................................................................... 26b.

Plastic Recycling Suppliers .................................................................................................................................. 29c.

Customers ........................................................................................................................................................... 30

d.

Associations & Research Institutes ..................................................................................................................... 30

7.

8.

Market Potentials and Recommendations ............................................................................................................. 31a.

Potentials ............................................................................................................................................................ 31b.

Challenges and main obstacles for market entry ............................................................................................... 32c.

Recommendations .............................................................................................................................................. 33
References .............................................................................................................................................................. 35

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List of Abbreviations
EPR

Extended producer responsibility

GHG

Greenhouse Gas

JCBA

Japan Customs Brokers Association

JCPRA

Japan Containers and Packaging Recycling Association

JEFMAJapan Environmental Facilities Manufacturers Association

JETRO

Japan External Trade Organization

JISC

Japanese Industrial Standards Committee

METI

Ministry of Economy, Trade and Industry

MoEJ

Ministry of Environment JapanNEDO

New Energy and Industrial Technology Development Organization

OECD

Organisation for Economic Co-operation and Development

PCR

Post-consumer recycling

PET

Polyethylene terephthalate

PIR

Post-industrial recycling

PMI

Plastic management index

PWMI

Plastic Waste Management Institute

RDF

Refuse Derived Fuel

REX

European Commission as a Registered Exporter

RPF

Refuse Paper & Plastic Fuel

SDGs

Sustainable Development Goals

SME

Small and medium sized companies

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1. Executive Summary
Japan is the second-largest consumer of single-use plastic packaging in the world after the USA. This is partly due tothe country's natural conditions, such as high humidity, which have encouraged a strong plastic packaging culture.
Moreover, Japanese consumers value cleanliness and well-presented packaging, making it a social norm in retail. However, the impact of China's 2018 ban on plastic waste imports has had a major impact on Japan, with the country
generating 9 million tons of plastic waste annually and exporting 1.5 million tons in 2017, including 900,000 tons to
China. While Japan turned its exports to other Southeast Asian countries, stricter import regulations reduced overall
exports. Concerns about global marine pollution made the situation worse. Japan has set up an emergency fund tosupport local waste recyclers primarily through incineration. Nevertheless, thermal recycling at 57% highlights theneed for more sustainable waste management solutions.
Against this background, Japan is actively seeking innovative technical solutions to tackle the problem of plastic waste.
European waste management companies, especially those specializing in sorting and recycling plants and materials
recovery, have already built a solid reputation in the country over the past years. The Japan-EU Free Trade Agreement(JEFTA) further promotes cooperation between Japan and European companies. Given the uncertainties in other markets, Japan is an attractive partner for cooperation and offers a unique opportunity for EU companies to expand in theJapanese market.
Compared to Europe, Japan's plastics recycling market is relatively small with 8.24 million tons of plastic waste in 2021.
Japan reports a recycling rate of 82%, but it's important to note that 57% of this recycling involves thermal methods
such as incineration with energy recovery. The remaining 25% is neither recycled nor reused but transformed into
other products or returned to raw materials. Surprisingly, 70% of non-recycled plastic is exported abroad and recycled
there, resulting in an actual recycling rate of less than 10%. Looking ahead to 2035, the domestic market for recycledplastics and materials is expected to reach 504 billion yen1, while the market for recycled plastics alone is expected tohit 355.3 billion yen2, more than doubling its current size.
However, the Japanese plastics recycling market is growing due to the global push towards recycling-oriented practices.
Key factors behind this growth include the 2030 Agenda for Sustainable Development, focusing on the SDGs and theban on plastic exports. In 2022, Japan introduced the Green Growth Strategy Through Achieving Carbon Neutrality, an
integrative approach that considers the entire plastic lifecycle. Challenges come as Japan ranks second in plastic container and packaging waste per capita, facing import restrictions from other Asian countries. To address these issues,
the government has implemented a milestone strategy based on the 3Rs (reduce, reuse, recycle) and renewable resources. The Plastic Resource Circulation Act of 2022 further promotes a circular economy in three phases: design
manufacturing, sales-delivery, and disposal-collection-recycling. This has spurred demand for innovative recycling
technologies, driven by tighter government regulations.

1
2

504 billion Yen = 3,238.878 million Euro (by currency rate of July 26, 2023: 1 Euro = 155.62 Yen)
355.3 billion yen = 2,283.157 million Euro (by currency rate of July 26, 2023)
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To find suitable distribution partners in Japan, industry associations, trade organizations like the Japan External Trade
Organization, IHKJ, or participating in trade fairs could be consulted. European companies have various options entering the Japanese market, including wholesale companies like Mitsubishi, Mitsui, and Sumitomo, which have strong
networks but limited marketing support. Smaller specialized trading companies offer proactive sales approaches
within specific industries, though they might lack the reputation of larger counterparts. Some European-origin trading
companies like Correns, Irisu K.K., and SKW Asia operate in Japan, capitalizing on cultural understanding and customer
service. Additionally, partnering with independent sales representatives or agents provides industry expertise andnetworking opportunities, but after-sales services might be limited. Alternatively, establishing a presence in Japanthrough an office or subsidiary demonstrates commitment and is valued by Japanese clients. However, this approachdemands substantial investment and time to cultivate relationships.
The Japanese market for waste management and recycling is promising but also challenging. Language barriers are asignificant obstacle for EU companies doing business in Japan. To be successful, thorough preparation, reliable local
partners and adapted communication strategies are crucial. It is strongly recommended to hire a trained Japaneseinterpreter for discussions and negotiations. European companies can sell products through different channels:
through wholesalers, SME trading companies, trading firms of European origin, sales representatives, agents, consultants, or by opening their own office in the country. Building strong relationships, customer focus, a positive corporate
image, quality products and strong customer service are essential for success in the Japanese market.
Japan has long been recognized for its advanced waste management practices, innovative technologies, and commitment to environmental sustainability. There are several competitive Japanese plastic recycling companies that havemade significant contributions to the circular economy and sustainable waste management. From a European perspective, companies such as Mitsubishi Material, Mitsui Chemicals, Sekisui Chemicals, JFE Engineering, MATEC Inc.,
Daiei Kankyo Group, Taka Pla, Planic stand out as key players in the Japanese plastic recycling industry. These companies exemplify the innovation, technological advancements, and commitment to environmental sustainability.
Customers are expecting high quality and an intensive after-sales-service, which should best be carried out by a specialized Japanese service company. The European company can find service companies via their Japanese partner(sales agent / distributor) and at a waste management fair in Japan. The leading fair for recycling is the yearly N-Expoin Tokyo. Another possibility to inform potential customers about their products is to participate at conferences andseminars in Japan. Collaboration is a key element of Japan's recycling industry. Companies actively collaborate withgovernment agencies, research institutions, and other stakeholders to share knowledge, expertise, and best practices.
These collaborative efforts promote continuous improvement, technological innovation, and the development of efficient recycling processes.

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2. Scope of the Report
This report is addressed to mainly small and medium-sized companies in Europe who offer innovative technology inthe plastics recycling sector. It presents a comprehensive overview of the Japanese plastics recycling market including
current trends, drivers as well as business potentials and challenges for European companies seeking to develop or
strengthen their positions in the Japanese market.
The political strategies and targets related to plastic waste management and emission reduction are described in part3.
The current size, structure and trends in the Japanese market for plastics recycling is summarized in chapter 4, including information on the current way of plastic waste sorting and collection.
Issues related to market access such as distribution channels and regulations are characterized in part 5. This chapter
also included some relevant trade fairs and some possible obstacles to market entry.
In part 6, some of the main market players (companies, universities/research institutes, associations) are listed up.
The report concludes with a short analysis of the business opportunities, main challenges, and key success factors inchapter 7.
Thus, the report strives to provide practical information and valuable recommendations for EU-based small and medium-sized enterprises engaging into the plastics recycling market which helps them to estimate the potential of Japan’s plastics recycling market for their specific innovative technology or service, and to capitalize on existing business
opportunities.
The report is based on an extensive desk research of relevant publications and media, including publications by Japanese ministries, government bodies and research institutions in Japanese language. Furthermore, information sources
such as specialist journals, economic journals, company reports and websites, statistical websites, etc. were integrated
to complement the study.

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3. Political Strategy and Targets
Japan has set the ambitious target to reach net zero emissions by 2050 and to reduce Japan’s greenhouse gas emissions by 46 % below 2013 levels by fiscal year 2030 (instead of the previously announced 26%). 3

Fig. 1: Japan’s targets for GHG reduction, 2021, National Greenhouse Gas Inventory Report, 2021
Improving carbon and material recycling is also on the agenda of the government program. Carbon-free synthetic fuels
are to be made commercially available by 2040. Another important government target is to reduce the manufacturing
cost of plastics obtained through artificial photosynthesis to 20 % by 2030. The goal is to reduce costs to the level ofexisting materials by 2050.

3

Ministry of the Environment (2021), Annual Report on the Environment, the Sound Material-Cycle Society and Biodiversity inJapan 2021
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According to the Plastic Waste Management Institute, the breakdown of waste plastic emissions in Japan (824 million
tons) is as follows (see also figure below).
•First, used products is 92.1%, and Production and processing losses are 650,000 tons, 7.9%.
o In detail of the used products is Packaging containers and other containers 4.01 million tons, which
accounts for 48.7%.
o Electric and electronic equipment, electric wires and cables, machinery, etc. is equivalent to 1.48 million tons, 17.9%.
o Household goods/clothing, footwear, furniture, toys, etc. are 730,000 tons, and 8.9%.
o Building materials, transportation, agriculture, forestry, and fisheries also account for a certain ratio.

Fig. 2a: Breakdown of waste plastic emissions by sector, Plastic Waste Management Institute, 2023

Fig. 2b: Breakdown of waste plastic emissions by resin, Plastic Waste Management Institute, 2023

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As part of the Green Growth Strategy Through Achieving Carbon Neutrality in 2050, which entered into force in 2022,
the Japanese government also proposed a new strategy for plastic recycling.4 It addresses the whole lifecycle of plastics and involves all stakeholders. Besides carbon emission reduction there are two reasons for this strategy. Firstly,
low rate of plastic waste usage and environmental pollution from marine plastics are the huge problem. Secondly,
Japan has faced to challenges as the second highest amount of plastic container and packaging waste per capita andimport restrictions in Asian countries. To change this situation, the government proposed a strategy named “3R and
Renewables” including specific milestones:
•
•
•
•
•

Reduce: Cumulative suppression of 25% of single-use plastics by 2030
Reuse, Recycle: Reusable/recyclable design by 2025
Reuse/recycle 60% of containers and packaging by 2030
Effective use of 100% of used plastics by reuse and recycling etc. by 2035
Recycling and Bio-based Plastics: Double the use of recycled content by 2030 / introducing about 2 million
tons of bio-based plastics by 2030

In order to achieve the milestones, the government declared the Plastic Resource Circulation Act in 2022 5. This act,
including more detailed and new policy measures for transition to a circular economy through advancing circulationof resources, ranges three phases: design manufacturing, sales -provision, and discharge ̶ collection ̶ recycling. Three
key factors are regarded as key factors for the success of the Plastic Resource Circulation Act and these three phases:6•••

Develop guidelines for Design for the Environment for manufacturers.
Set criteria for retailers and service providers to reduce single-use plastics.
Manufacturers and retailers develop a plan to collect and recycle their used products.

In addition to the 3 phases mentioned above, the government formulated five specific requests to businesses andlocal governments in order to make the laws more feasible and easier to implement:
•
•
•
•
•

Design Guideline and Certification System for Products Using Plastics
Voluntary collection and recycling by manufacturers and distributors
Rationalization of the use of certain plastic products.
Emission control, recycling, etc. by emitting companies.
Separate collection and recycling of plastic-used product waste by municipalities.

4

Ministry of Economy, Trade and Industry METI (2021), Green Growth Strategy Through Achieving Carbon Neutrality in 2050
Japanese Government, Ministry of the Environment MoEJ (2022), The Plastic Resource Circulation Act
6
Mizuho Research & Technologies (2021), Current status and challenges of domestic plastics recycling
5

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4. Market Situation
a. Market Volume
Compared to Europe, the plastics recycling market in Japan is not large. The reason behind this is that 3/4 of the waste
plastic generated in Japan is still incinerated and not recycled. However, the future potential is huge as Japan has thesecond largest amount of plastic waste per capita in the world. Japan's plastic recycling volume is still lower than thatof Europe, the EU, and the US. Japan's official recycling rate for plastics is 87%. However, 62% of the plastics are recycled by thermal recycling, that means incineration with energy recovery7. This could be a good reason to believe thatJapan is a "recycling powerhouse" when in fact it is an "incineration powerhouse 8.
The amount of waste plastic in 2021 is 8.24 million tons according to Japan Plastic Recycling and Reuse Association.
The breakdown by sector of the 8.24 million tons of total waste plastic discharged was 4.01 million tons, or 48.7%, forpackaging, containers, etc., 1.48 million tons, or 17.9%, for electrical and electronic equipment, wires and cables, machinery, etc., and 730,000 tons, or 8.9%, for household goods, clothing and footwear, furniture, toys, etc. 9.

Plastic waste in Japan in 2021 [in Mio t]
0.73; 12%

1.48; 24%

packaging containers

4.01; 64%

electrical and electronic equipment

household goods

Fig. 3: “Plastic Products”, Association for the recycling and reuse of plastics, 2022
The amount of industrial waste is the same amount for 10 years. Plastic waste accounts for 1.9 % of industrial waste.
As for general waste, it has gradually decreased since 2000 around 14 million tons. In 2022, plastic waste shares 14.7 %of general waste. According to the research of Japan Plastic Waste Recycling Association 10, both plastic production
and consumption are declining. Plastic production became 87,000 tons less and plastic consumption declined 94,000

7Japan Association for Recycling Plastic Products (2023), Basic Knowledge of Plastic Recycling
Ministry of Environment (2018), Domestic and International Situation Surrounding Plastics
9
Japan Association for Recycling Plastic Products (2022), Status of Production, Disposal, Recycling, and Treatment and Disposal
10
Japan Association for Recycling Plastic Products (2022), Status of Production, Disposal, Recycling, and Treatment and Disposal
8

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tons compared to the previous year. The effective utilization rate of waste plastics increased by 1% from 2019. According to Fuji Economy, as of 2021, the domestic market for recycled plastics and materials are around €1.2 billion,of which recycled plastics account for €1 billion. 11

Fig. 4: Development of plastic production and consumption, Japan Plastic Waste Recycling Association, 2023.
The production volume of polyethylene and polypropylene is the largest in Japan and both are the two most widely
produced plastics, which together account for almost half of the total production. This is due to the fact that about
40% of all plastic are polyethylene and polypropylene, and these two alone account for almost half of all plastic applications. To be more specific, by resin, polyethylene accounted for 33.8% of the total amount of waste plastic discharged at 2.79 million tons, polypropylene 24.4% at 2.01 million tons, polystyrene 12.2% at 1.01 million tons, andpolyvinyl chloride 8.5% at 700,000 tons in 2021 according to Japan Plastic Recycling and Reuse Association.

b. Market Developments and Trends
Japan's plastics recycling market is developing due to the growing global movement toward a recycling-oriented society. In particular, the 2030 Agenda for Sustainable Development, which is centred on the SDGs (Sustainable Development Goals), and the export ban on plastics have had a significant impact on the market. This global trend has also put
Japan at the forefront of innovative waste management practices, and the plastics recycling industry has made great
strides in recent years.

11

Fuji Keizai Group (2022), New Outlook for Circular Plastics and Materials Market in 2022
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In 2035, the domestic market for recycled plastics and materials is projected to be 504 billion yen12, and the market
for recycled plastics is projected to be 355.3 billion yen13. Both are expected to more than double in size compared to
today. The forecast is that more and more companies are adopting the product from an environmental perspective,
and the expansion will be driven by material recycling plastics. 14
There have been some key factors that contributed to a growing plastic recycling market:

1. Regulatory Framework
Japan has implemented comprehensive legislation and regulations to promote recycling. The Waste Management andPublic Cleansing Law, introduced in 1970, provided the legal foundation for waste reduction, recycling, and proper
waste disposal. Over time, the law has been revised and expanded to include specific targets for recycling rates, waste
separation requirements, and extended producer responsibility (EPR) schemes. These regulations have incentivizedbusinesses and individuals to participate actively in recycling activities.15
The main Regulations and laws related to plastic recycling are:2000 Act for Establishing a Recycling-Oriented Society
The act is aiming a society in which the consumption of natural resources is reduced and the burden on the environment is minimized as much as possible through the control of waste generation and its proper recycling and disposal.
With the above law as a basic framework, the Law for Promotion of Effective Utilization of Resources, Waste Disposal
and Public Cleansing Law, and individual recycling laws have been enacted. Individual recycling laws consist of 6 categories, Containers and Packaging Recycling Law, Home Appliance Recycling Law, Food Recycling Law, Construction
Recycling Law, Automobile Recycling Law, Small Home Appliance Recycling Law. 16
Containers and Packaging Recycling Law
The law was enacted in June 1995 and came into full effect in April 1997 to reduce the volume of containers andpackaging waste, which accounts for about 20-30% of the weight and 60% of the volume of household waste. It promotes recycling and other measures, and the effective use of resources. The regulation places the responsibility for
waste reduction and recycling on the shoulders of consumers, municipalities, and businesses, respectively. Consumers
must play a role in reducing waste through rational selection of containers and packaging, as well as in sorting anddischarging waste containers and packaging. Businesses that manufacture or use the containers covered by this law
are obliged to recycle them. Businesses may outsource the performance of their recycling obligations to the Japan12504 billion Yen = 3,238.878 million Euro (by currency rate of July 26, 2023: 1 Euro = 155.62 Yen)
355.3 billion yen = 2,283.157 million Euro (by currency rate of July 26, 2023)
14
Fuji Keizai Group (2022), New Outlook for Circular Plastics and Materials Market in 2022
15
Ministry of the Environment: https://www.env.go.jp/recycle/waste/laws.html
16
Ministry of Environment (2022), Legal System for Forming a Recycling-Oriented Society
13

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Containers and Packaging Recycling Association by paying a recycling fee to the association. Municipalities must establish a sorted collection plan and take necessary measures for the sorted collection of containers and packaging
waste within the municipality's area. 17
Based on this, businesses are required by law to display an identification mark on containers and packaging to facilitate
sorted collection. In the case of plastics, it is recommended to add a "material label" in addition to the identification
mark because of the wide variety of materials used. 182022 Law for Promotion of Resource Recycling of Plastics
The New Plastics Recycling Promotion Act aims to promote resource recycling of plastics and stipulates necessary
measures at each stage of plastic-using products from design and manufacture, sale and supply, to discharge, collection, and recycling. Designers and manufacturers are required to design in accordance with the "Guidelines for the
Design of Plastic-Used Products" established by the government. Specifically, these guidelines include reducing theamount of plastic used, reusing parts, designing products that are easy to recycle, substituting materials other thanplastic, and using recycled plastic and bioplastics. 19
Some have criticized these regulations as vague and low standards. Higher targets have been set in other countries,
such as Korea's goal of reducing single-use items (disposables) by at least 35% by 2022.
2. Public Awareness and Participation
One of Japan's notable achievements in recycling development is its emphasis on public awareness and participation.
The Japanese government, along with local municipalities, has undertaken extensive education campaigns to promotewaste separation and recycling practices among citizens. Educational programs, community workshops, and public
events have helped raise awareness about the importance of recycling and the benefits of sustainable waste management. As a result, recycling has become ingrained in Japanese society, with citizens actively participating in recycling
efforts. 20
3. Technological Advancements
Japan's plastic recycling industry has benefited from continuous technological advancements. Advanced European
sorting technologies, such as near-infrared spectroscopy and artificial intelligence-based systems have been adopted
to efficiently separate different types of plastics. These advancements have increased the overall recycling rates andimproved the quality of recycled plastic, making it more suitable for a wide range of applications. 21
4. Collaboration and Industry Initiatives
Japan has fostered strong collaborations between government, industry, and academia to promote plastic recycling.
Various industry-led initiatives have been established. Organizations such as the Japan Plastic Industry Federation and

17

Ministry of Environment, (2023), What is the Containers and Packaging Recycling Law
Japan Plastic Recycling and Reuse Association (2022), Basic knowledge of plastic recycling
19
Ministry of the Environment (2022), Act on Promotion of Resource Recycling Related to Plastics
20
Ministry of the Environment, Press release
21
New Energy and Industrial Technology Development Organization NEDO (2020), Press release18

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The Council for PET Bottle Recycling play pivotal roles in coordinating efforts, setting recycling targets, and implementing collection and recycling systems. These collaborative initiatives create a conducive environment for knowledge
sharing, technology transfer, and the development of best practices in plastic recycling.

Major trends of the plastic recycling market in Japan are as follows:
1. Increasing Recycling Rates
Japan has been successful in steadily increasing its plastic recycling rates over the years little by little. The country has
set ambitious targets to reduce plastic waste and promote recycling. Efforts are focused on enhancing collection systems, improving sorting technologies, and expanding the range of recyclable materials. 22
2. Chemical Recycling Technologies
Chemical recycling has emerged as a prominent trend in Japan's plastic recycling landscape. The country has madesignificant investments in developing advanced chemical recycling technologies to address the challenges posed bycomplex and contaminated plastics. Techniques enables the production of high-quality recycled materials. however,this method hasn't been penetrated yet.
3. Circular Economy Approaches
The concept of the circular economy is a driving force in Japan's plastic recycling trends. The country recognizes theneed to shift from a linear "take-make-dispose" model to a circular system that promotes resource conservation andminimizes waste generation. Japan is investing in research and development to enhance recycling technologies, promote eco-design principles, and encourage product stewardship. 23
These trends highlight Japan's commitment to sustainable waste management, technological innovation, and resource
conservation.

c. Main Applications in Japan
Plastic waste is composed as follows: PET plastic bottle accounts for 14%, plastics except for containers and packaging
account for 14% as well, and Styrofoam/ tray have 3%. Most of the plastic waste is from other plastic containers andpackaging, which accounts for 69%.

22
23

Japan Plastic Recycling and Reuse Association (2022), Basic knowledge of plastic recycling
Ministry of Economy, Trade and Industry (2020), Green Growth Strategy for Carbon Neutrality by 2050
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The contents of plastic waste
Plastic bottle 14%
14 %Other plastic containers and packaging 69%

14 %Plastics other thancontainers andpackaging 14%

69 %trays 3%
3 Styrofoam%

Fig. 5: The contents of plastic waste, Plastic Waste Management Institute, 2023
The production ratio of plastics by application is as follows: Of the 5.68 million tons produced, film and sheet willaccount for 43.2%, almost half. Containers accounted for 15.0%, machinery and equipment parts 11.8%, and pipes
and fittings 7.2%. Other products, although smaller in number, include daily necessities and sundries, construction
materials, foam products, boards, reinforced products, and synthetic leather.

Plastic production 2022: 5,68 million t
22,80%

43,20%
7,20%

11,80%
15,00%
Film and sheet

Containers

Machinery and equipment parts

Fittings

OthersFig. 6: Plastic production, Plastic Waste Management Institute, 2023
In recent years, the trend toward higher functionality in containers and packaging has made significant progress inJapan, and multilayered films are now used in many products. For these chemical or thermal recycling is recommended.
The effective utilization rate has been increasing year by year. Material recycling refers to the reuse of waste plastics
as raw materials for similar applications after shredding, dissolving, or other treatment. According to the international
standard ISO 15270, it is classified as Mechanical Recycle. Chemical recycling is the process of chemically decomposing
waste plastics back to their raw material state and reusing them as raw materials for products. According to the international standard ISO 15270, it is classified as Feedstock Recycle. Thermal recycling (energy recovery) refers to the use

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of incineration energy to generate electricity by using waste plastics as the primary or auxiliary fuel. (It does not include
incineration to reduce volume as a pre-process for landfill disposal.)
Japan's plastic utilization rate for 2019 is 85%. The breakdown is 21% for material, 3% for chemical, and 63% for thermal recycling as of 2021. 24

Japan's plastic recycling 2021

21%
3%
63%

Material recycling

Chemical recycling

Thermal recycling

Fig. 7: Types pf plastic recycling, Plastic Waste Management Institute, 2023
In addition to the viewpoint of the way of recycling, it can also be divided into two categories by raw material andsorting source: post-consumer recycling (PCR) and post-industrial recycling (PIR). Post-consumer recycling (PCR) is theprocess of collecting used products from the market and converting them into recycled resources. Post-industrial recycling (PIR), on the other hand, refers to the recycling and reuse of materials generated in the product manufacturing
process prior to market release; in JIS Q 14021 (ISO 14021), it is called pre-consumer recycling.
It can also be divided into two categories, horizontal recycling and cascade recycling, depending on the product being
reborn. Cascade recycling is a method in which one recovered product is recycled into a different product from theoriginal one through recycling. Thus, various types of recycling exist and can be incorporated into each product.

d. Main Processes in Japan
There are three categories of plastic recycling: material, chemical and thermal recycling. The recycling methods, shares,
and total amounts of plastics processed are shown in Tab. 1. 25

24
25

Japan Association for Recycling Plastic Products (2022), Status of Production, Disposal, Recycling, and Treatment and Disposal
Japan Plastic Recycling and Reuse Association (2022), Basic knowledge of plastic recycling
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Category

Material recycling

Way of recycling

Recycled plastic

Share

21%

- Converted to plastic raw materials- Converted to plastic products
Chemical recycling

Raw material/Monomerization

4%

Blast furnace reductant
Coke oven chemical feedstock
Gasification/Oilification (Chemical feedstock)
Thermal recycling(Energy recovery)

Gasification, Oilification (Fuel)

2%

Cement raw materials/fuel24%

Refuse power generation

31%

RPF (Refuse derived paper and plastics densified Fuel)

4%

RDF (Refuse Derived Fuel)

Tab. 1: Type of plastic recycling, Plastic Waste Management Institute, 2023
The effective utilization of plastic went up to 87% in 2022, against 58% in 2005. In terms of disposal and recovery
methods, mechanical recycling increased to 1,770 kt (+40 kt; +2%), chemical recycling increased to 290 kt (+20 kt; +7%),
and energy recovery (thermal recycling) increased in total to 5,110 kt (+20 kt; ± 0%).

(1) Material recycling
The technology was born in the 1970s and there are currently several hundred manufacturers in Japan. Material recycling used to for mainly industrial waste plastics. Recycled processed products made from waste industrial plastics
have had problems, such as reduced physical properties and unstable quality. However, this has been overcome by
improving the quality control of the waste plastics used as raw materials, blending technology, and manufacturing andprocessing technology.
(2) Chemical Recycling
In raw materials and monomerization, plastic bottles are made of plastic bottles. Plastic bottles are recycled into fibre
and sheets. A technology was developed to make PET resin by returning it to the intermediate stage of synthesis. Used
PET bottles are chemically decomposed into raw materials and monomers (depolymerization), and then converted
into PET resin. In April 2004, the bottle-to-bottle business was launched with the approval of the Ministry of Health,
Labor and Welfare.

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Blast furnace feedstock technology allows waste plastic to be used in the blast furnace as a reductant instead of coke.
Waste plastics collected from factories and households are cleaned and granulated before being blown into the blast
furnace together with coke.
In the coke oven chemical feedstock technology coke, hydrocarbon oil, and coke oven gas are produced from thevolatile components generated when waste plastics are steamed. As a result, 40% hydrocarbon oil as a chemical raw
material, 20% coke as a reducing agent for blast furnaces, and 40% coke oven gas used for power generation are made.
Gasification technology turns waste plastic into gas, which is then used as a raw material for the chemical industry.
The synthesis gas is turned into hydrogen, methanol, ammonia, acetic acid, and other raw materials for the chemicalindustry.
Oil conversion technology converts waste plastic back into oil. However, the process is an endothermic reaction that
requires the supply of energy, and many facilities withdrew from the process in the mid-2000s due to its high cost andthe risk of explosions and other hazards.
(3) Thermal recycling
Waste plastics have been collected and disposed of at the discretion of local authorities, but in 2005 the Ministry of
the Environment has decided to unify the previously mixed standards for sorting as “combustible waste” and no landfill
was allowed. in FY2020, the Tokyo 23 Wards Cleaning Association recorded a total of 1.25 billion kWh of electricity
generated, 750 million kWh of electricity sold, 351,000 GJ of heat supplied (for a fee) and 9.6 billion yen of income
from electricity and heat sales.
Thermal recycling methods include the use of waste incineration heat, waste incineration power generation, cement
raw materials/fuel conversion, and solid fuel conversion (RPF, RDF). Of these, waste incineration power generation
has attracted renewed attention in recent years as an important energy source. The use of waste as energy is steadily
increasing. Approximately 70% of all waste incineration plants in Japan (1,056 sites) use some form of surplus heat
used for heating, bathing, and hot water pools. As of 2020, there were 387 waste incineration plants with power
generation facilities, accounting for 37% of all waste incineration plants, with a total power generation capacity of
2,079 MW. The total amount of electricity generated was 10,153 GWh (+163 GWh compared to the previous year),which was enough to power approximately 2.38 million households.

5. Market Accessa. Plastic Waste Collection System
The plastic waste collection system in Japan is quite advanced. It differs depending on the source of plastic waste(household/domestic waste and industrial waste) as outlined in figure 8:

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Fig. 8: Flowchart of plastic waste recycling 2022, Plastic Waste Management Institute JAPAN (PMWI), 2022;
Figures in kt.

(1) Household Waste
Municipalities are responsible for the separate collection, sorting and cleaning of packaging waste in compliance withlegal requirements. 90% of all municipalities handed over their waste to the Japan Containers and Packaging Recycling
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Association (JCPRA) 26 in 2017. Plastic containers and packaging collected at designated storage facilities are handed
over to the municipalities. Transportation to the factory is performed by a recycling company.

Fig. 9: Recycling flow, Japan Containers and Packaging Recycling Association (JCPRA), 2023

(2) Industrial Waste
The collection and recycling system for industrial waste is functioning as follows.
Company

JCPRA

Recycler

The JCPRA acts as a liaison between companies and recycling companies. The JCPRA outsources recycling to external
companies, which it selects through competitive bidding. The outsourcing costs, in turn, are transferred to the companies via a quantity-dependent fee.
The recycling business operator recycles and sells the recycled products. The products include plastic products such as
pallets, recycled resin, and fake wood, as well as coke oven chemical feedstock, blast furnace reductant, pyrolysis oil,and synthetic gas, which are sold to plastic moulding manufacturers. As of 2020, the number of operators in the channel of collection and transportation of waste plastics is 535. And the number of businesses for intermediate treatment
and recycling is 284 nationwide. 27

26
27

JCPRA = The Japan Containers and Packaging Recycling Association
METI, Ministry of the Environment (2020), Results of the Recycling Industry Fact-finding Survey
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b. Distribution channels
Japanese recycling plant providers (see chapter 6a) often use their contacts to regional/local administration or tofeedstock (i.e., plastic waste) suppliers. They are often part of a company group such as Mitsubishi or Sumitomo andcan make use of the synergies within the group to successfully diversify their business.
Especially in the beginning, a partnership with domestic players (see chapter 6) is a good way to get started. Such apartnership can take various forms: feedstock arrangements, technology alliances, joint ventures, value chain alliances.
For the sales of their technology, there are several options: wholesale companies, small and medium-sized trading
companies, trading companies of European origin, sales representatives, agents or consultants as well as an own officein Japan. To find suitable distribution partners it is recommendable to consult respective industrial associations or
institutions promoting foreign trade such as the Japan External Trade Organisation 28, the EU-Japan Centre for Industrial Cooperation, or through trade fairs.
Japanese wholesale companies enjoy a good reputation in Japan and have extensive networks. However, they often
have limited interest in pure trading and distribution and offer minimal marketing and sales support. Smaller trading
companies often specialize in specific industry sectors. These companies usually have excellent access to a specificindustry sector and take a proactive sales approach. However, they do not necessarily enjoy the same reputation as
general trading companies and often operate more regionally than nationally. Also, many of these companies may
have little experience with foreign suppliers, which can lead to cultural misunderstandings and conflicts due to different expectations. Trading companies of European origin operating in Japan for a long time offer the advantage of
avoiding the obstacle of cultural differences between Europe and Japan. Additionally, these companies are bringing
to the fore the customer service that is highly valued in Japan. Independent sales representatives and agents haveextensive industry experience and a strong network and support business development in Japan. However, they usually cannot provide after-sales services.
Another option is to establish an independent presence in Japan, which gives them full control over market strategy,
personnel and other aspects. This approach shows the European company's commitment to Japan and is highly appreciated by Japanese clients. However, this step requires a significant initial investment and time to build business
relationships.
Some examples of trading companies are:28

Company

Correns Corporation

HQ

1-8-7,Roppongi,Minato-ku,Tokyo,106-0032,Japan

Websitehttps://www.correns.co.jp/

Products

Representative of European machine and component manufacturers
in Japan, e.g. machines for plastic recycling

JETRO Japan External Trade Organisation
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Company

K.K. IRISU (C. ILLIES & CO., LTD.)

HQ

Irisu Building, 3-12-18 Kamiosaki, Shinagawa-ku, Tokyo 141-0021

Websitehttps://www.irisu.jp/en/

Products

Sales partner for the conception, implementation, and after-sales
support of machinery, equipment, and complex processing systems
for manufacturing industries

Company

SKW East Asia Ltd.

HQ

Sanbancho KS Bldg. 6F, Sanbancho 2, Chiyoda-ku, Tokyo 102-0075,
Japan

Websitehttps://www.skwea.co.jp/en/company/

Products

The Company's line of business includes the wholesale distributionof durable goods.

Company

Shonan Trading Co., Ltd

HQ

5F, Tobu Yokohama 2-BLDG 2-15-1, Kitasaiwai, Nishi-ku, Yokohama
220-0004 Japan

Websitehttps://www.shonantrading.com/index.html

Products

Agent for a wide variety of foreign manufacturers. Their focus is especially on importing and distributing film production processes andplastic recycling technologies through Japan.

Company

Sojitz Machinery Corporation

HQ

2F, Marunouchi Center Bldg., 6-1, Marunouchi 1-Chome, Chiyodaku, Tokyo 100-0005 Japan

Websitehttps://www.sojitz-mac.com/en/division/environment_lifestyle/

Products

A trading company for industrial machinery. The Environment andLifestyle Industrial System Division can offer extruders, granulationequipment, coating systems, and conversion systems made by not
only Japanese manufacturers but also European manufacturers,
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Company

SANKO SHOJI LTD.

HQ

Yodoyabashi Mitsui Bldg., 4-1-1, Imabashi, Chuo-ku, Osaka, 5410042, Japan

Websitehttps://www.sankojapan.co.jp/english/profile/

Products

Advanced Engineering-oriented Trading Company that offers different plants and systems

c. Regulations
Import/Export of machinery to Japan
When it comes to importing machinery to Japan, the importing company wishing to distribute foreign machinery inJapan does not require any special licenses or operating permits. For the European company wishing to export toJapan, it is recommended to register with the relevant customs office of the European Commission as a Registered
Exporter (REX).
In this way, the declaration of origin for the recycling plant components can be drawn up if it corresponds to theoriginal. Under the EU-Japan Economic Partnership Agreement (EU-Japan EPA), a declaration of origin from a registered exporter is used as proof of preference when exporting from the EU. It is advisable to check the current export
regulations and procedures at the German customs office research. More information and a list of custom brokers
available depending on the arrival port/airport in Japan can be obtained from the Japan Customs Brokers Association(JCBA). The EU-Japan EPA Helpdesk can also provide further information.
Technical standard JIS
The Japan Industrial Standard (JIS) is issued by the Japanese Industrial Standards Committee (JISC) which underlies thejurisdiction of METI. JISC works closely with the International Organization for Standardization (ISO) and the International Electronical Commission (IEC). Although JIS is not mandatory and in many cases is very close to ISO, Japanesecustomers prefer to stick to JIS-certified products because the certification process may include certain special Japanese regulations or specifications that apply only to the Japanese market. Especially for foreign companies, the application process can be difficult due to specific regulations and language barriers. However, there are organizations inJapan that can assist foreign companies with the application process, e.g. the Japan Quality Assurance Organization(JQA).

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Law on plastic recycling
Article 1 of the Law for Promotion of Resources Recycling of Plastics, which went into effect on April 1, 2022, states as
its premise that it is necessary to ensure that the construction and operation of recycling plants do not harm the healthof the citizens living in the vicinity. For example, air pollution from amortization of thermal recycling and noise.29
The characteristics of recycling plants that are easily accepted can be seen from two government-funded projects: Asa project to promote the introduction of advanced CO₂-saving recycling and other facilities, the government supports
the introduction of CO₂-saving recycling and other facilities. The Demonstration Project for Establishing a Recycling
System for Plastics and Other Resources to Support a Decarbonized Society supports the conversion to alternative
materials to plastics and their implementation in society. 30

d. Trade Fairs
The leading trade fair for recycling, the N-Expo in Tokyo, and some other fairs that include related topics in the fieldof recycling are listed below:

29
30

•

N-Expo (Tokyo),
May 22 – 24,2024, Tokyo Big Sight, annual
https://www.showsbee.com/fairs/N-Expo-Japan.html)•

Plastic Resource Recycling Fair (in the frame of the Resource Circulation Expo in Tokyo)
March 16 - 18, 2022, Tokyo Big Sight, annual
https://www.resource-expo.jp/en-gb/about/plastic.html•

Techno-Frontier (Tokyo)https://www.jma.or.jp/tf/en/index.html
July 24 – 26, 2024, Tokyo Big Sight, annual
https://www.jma.or.jp/tf/en/•

World Smart Energy Week (Tokyo),February 28 – March 1, 2024, Tokyo Big Sight, annual
https://www.wsew.jp/spring/en-gb/about.html•

Circular Economy EXPO (Tokyo)
February 28 – March 1, 2024, Tokyo Big Sight, annual
https://www.circulareconomy-expo.jp/en-gb/about.html•

EcoPro (Tokyo),
December 2023, Tokyo Big Sight, annual
https://messe.nikkei.co.jp/ep/

Ministry of the Environment (2022), Act on Promotion of Resource Recycling Related to Plastics
Ministry of the Environment (2022), Act on Promotion of Resource Recycling Related to Plastics
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FUKUSHIMA Renewable Energy Industrial Fair (REIF, Fukushima),
October 2024, Big Palette Fukushima, annual
2023 fair: https://reif-fukushima.jp/en/•

Smart Factory Japan (Tokyo),
January 24 – 26, 2024, Tokyo Big Sight, annual
https://www.fiweek.jp/hub/en-gb/about/sfe.html•

Maintenance / Resilience TOKYO (Tokyo, Osaka)
July 24 - 26, 2024, Tokyo Big Sight, annual
https://www.cantonfair.net/event/12347-maintenance-resilience-tokyo•

Plastic Japan Tokyo (Chiba) / Osaka, twice a year
October 4 - 6, 2023, Makuhari Messe, Chiba
May 8 - 10, 2024, INTEX Osaka
https://www.material-expo.jp/hub/en-gb/exhibit/pla.html•

IPF Japan Tokyo (Chiba)
November 28 – December 2, 2023, Makuhari Messe (Chiba), once every 3 years
https://www.jetro.go.jp/en/database/j-messe/tradefair/detail/121990

6. Major players
a. Technology Suppliers / Competitors
Japan has long been recognized for its advanced waste management practices, innovative technologies, and commitment to environmental sustainability. Japan is home to several competitive plastic recycling companies that havemade significant contributions to the circular economy and sustainable waste management. From a European perspective, companies such as Morita, Ebara, Sanko Shoji, Mitsubishi Materials, and Mitsubishi Chemical stand out as
key players in the Japanese plastic recycling industry. These companies exemplify the innovation, technological advancements, and commitment to environmental sustainability that are crucial in addressing the global plastic waste
crisis.
Company

Morita Group

HQ

Keihanshin-Midosuji Building 12F, 3-6-1 Dosho-machi, Chuo-ku,
Osaka-shi, Osaka, 541-0045, Japan

Websitehttps://www.morita119.com/en/products/recycling/

Products

Recyclable waste processing plant, non-recyclable waste processing
plant, combustible bulky waste processing plant, incombustible
bulky waste processing plant; shredders, shears, etc.
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Company

Ebara Corporation

HQ

11-1, Haneda Asahi-cho, Ota-ku, Tokyo 144-8510, Japan

Websitehttps://www.ebara.co.jp/en/eep/index.html

Products

Plastics incineration plants, waste treatment plants, waste-to-energy

Company

SANKO SHOJI LTD.

HQ

Yodoyabashi-Mitsui Bldg., 4-1-1, Imabashi, Chuo-ku, Osaka, 5410042, Japan

Websitehttps://www.sankojapan.co.jp/english/products/recycle.html

Products

Recycle plants, e.g. for plastic waste and PET bottles

Company

Mitsubishi Materials

HQ

3-2-3, Marunouchi, Chiyoda-ku, Tokyo 100-8117 Japan

Websitehttps://www.mmc.co.jp/corporate/en/

Products

Incineration plants, non-ferrous recycling technology, circular resource recovery, etc.

Company

Mitsubishi Chemical Corporation

HQ

1-1, Marunouchi 1-Chome, Chiyoda-ku, Tokyo 100-8251, Japan

Websitehttps://www.mcgc.com/english/index.html

Products

Plastic waste chemical recycling

There are several reasons why Japanese plastic recycling companies are competitive for European companies.
1. Technological Advancements
Japanese companies have invested significantly in research and development to develop advanced recycling technologies. They have installed innovative sorting, processing, and chemical recycling techniques – often from European manufacturers.
2. Quality and Reliability
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Japanese plastic recycling companies are known for their commitment to delivering high-quality recycled materials.
They adhere to strict quality control measures and meet stringent standards, ensuring that the recycled materials
they produce are of superior quality. This commitment to quality and reliability has earned them a reputation for
excellence in the industry, making them competitive not only in the domestic market but also in the global arena.
3. Cooperation
In addition to the strengths of each company, it can be said that the strength of the Japan market lies in collaboration. Major chemical manufacturers are collaborating horizontally to accelerate research and development ofchemical recycling. In addition, there have been cases where a large-scale alliance system has been created in which
22 companies across industries participate in the development of technologies and the creation of a comprehensive
system. As an example of horizontal, industry-academia, and venture collaboration, Sumitomo Chemical andSekisui Chemical have developed chemical recycling technology in cooperation with universities, private companies,
and public-private funds. Research began in 2020 to promote joint research to synthesize methanol from carbon
dioxide and production technology to convert combustible waste into ethanol. 31
An example for a leading Japanese plastic recycling company is Planic, one of the largest manufacturers of recycledplastics in Japan. It was established in December 2018 as a joint venture of Veolia Japan K.K. Planic accepts plastic
products from both municipalities and companies. First, the plastic collected from factories and municipalities is sorted.
Dust and metals are removed. Then, it is crushed and pulverized, followed by heavy-liquid sorting. The liquefied material is next subjected to electrostatic sorting to produce PS and ABS. The polystyrene and ABS resins are sold to aconverter. A portion of the electrostatically sorted material is then subjected to light-liquid sorting, passed through a
combiner, and extruded to be reborn as recycled plastic. The recycled plastic is then shipped to plastic product manufacturers.

31

1 Sumitomo Mitsui Banking Corporation (2021), Recycling of waste plastics
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Fig. 10: Recycling flow at the Planic plastic recycling plant, Planic, 2023

b. Plastic Recycling Suppliers
Japanese plastic recycling traders, e.g. Daisaku Trading, NK Plastics and TOA Corporation, are competitive due to several reasons that contribute to their success in the industry:
1. Fulfilled domestic network
Even machines purchased from overseas can be repaired domestically thanks to their network such as branches.
Manufacturers of recycling machinery and equipment establish partnerships with national and international organizations, including suppliers and distributors. These partnerships give you access to a wide range of resources, technical expertise, and spare parts needed to repair plastic recycling machines as shown in the below.
2. Quality Assurance and Certification
Japanese plastic recycling traders prioritize quality assurance and certification of their recycled materials. They use
high quality control measures. This emphasis on quality assurance enhances their credibility and reputation in themarket, making them a preferred choice for buyers who prioritize reliable and consistent recycled materials. 32

32

Plastic Recycling and Reuse Association (2022), Basic knowledge of plastic recycling
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c. Customers
In the realm of plastic recycling, the responsibility of carrying out recycling processes lies in the hands of industry andmunicipality, and major players such as the Japan Containers and Packaging Recycling Association JCPRA (see also
chapter 5a). Recycling plants are operated by a combination of these entities, working together to address the environmental concerns associated with plastic waste. These plants are equipped with specialized machinery and systems
to efficiently sort, process, and transform plastic materials into reusable forms.
However, a direct contact to municipalities by European recycling companies would be unusual and difficult. Customers for European plastic recycling machinery and equipment are rather waste management companies such as DOWA
ECO-SYSTEM Co., Ltd., Nippon Koei Co., Ltd , TAKUMA CO., LTD., recycling plant operating companies (see also chapter6a) or recycling consortia.

d. Associations & Research Institutes
Collaboration is a key element of Japan's recycling industry. Companies actively collaborate with government agencies,
research institutions, and other stakeholders to share knowledge, expertise, and best practices. These collaborative
efforts promote continuous improvement, technological innovation, and the development of efficient recycling processes. The collective expertise of various stakeholders helps Japanese recycling companies stay at the forefront ofindustry advancements. The collaboration pattern is various. Some are cooperating with university and company, or
government and association. 33 In fact, at material recycling, there are many cases where product manufacturers andchemical manufacturers collaborate with recyclers and universities that already have the technology to promote research and development. 34
Some relevant associations and institutions in Japan are:
•
•
•
•
•
•
•
•
•
•
•
33
34

Council for PET Bottle Recycling, http://www.petbottle-rec.gr.jp/english/
Japan Containers and Packaging Recycling Association (JCPRA), http://www.jcpra.or.jp/tabid/603/index.php
Japan Environmental Facilities Manufacturers Association (JEFMA), http://www.jefma.or.jp/englishpage_f.htm
Japan Industrial Waste Information Center, http://www.jwnet.or.jp/en/index.html
Japan Industrial Waste Management Foundation, http://www.sanpainet.or.jp/
The Japan Society of Industrial Machinery Manufacturers (JSIM), https://www.jsim.or.jp/en/e-jsim/
The Japan Society of Material Cycles and Waste Management (JSMCWM), http://jsmcwm.or.jp/international/
Japan Waste Management Association, http://www.jwma-tokyo.or.jp/asp/english/index.html
JPM Japan Plastics Machinery Association, https://www.a-jpm.jp/
JPPF All Japan Plastic Products Industrial Federation, http://www.jppf.gr.jp/, (https://www.jpif.gr.jp/english/profile/m_list.html)
Plastic Waste Management Institute (PWMI), http://www.pwmi.or.jp/ei/index.htm

METI Journal 28.03.2022
Sumitomo Mitsui Banking Corporation (2021), Recycling of waste plastics
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Research institutes in the field of plastic recycling are for instance:
•
•
•
•
•
•

ERI Eco Research Institute Ltd., https://www.ecobioplastics.jp/en/about/
NRI Nomura Research Institute, Ltd., https://www.nri.com/en/company
PWMI Plastic Waste Management Institute, https://www.pwmi.or.jp/english/
Tohoku University, https://www.eng.tohoku.ac.jp/english/
University of Kitakyushu, http://www.env.kitakyu-u.ac.jp/ja/kenkyuka/hohya/research.html
Yano Research Institute Ltd., https://www.yanoresearch.com/about_yano/

7. Market Potentials and Recommendations
a. Potentials
There are some factors that highlight the potentials in the Japanese market for innovative plastic recycling technologies:
Promotion of a recycling-oriented society
Japan has the second highest plastic management index (PMI) in the world, thanks to its advanced waste management
system and high levels of local cooperation. At the same time, the recycling market continues to grow due to theworld's second largest amount of waste plastic waste and growing environmental awareness around the world. Government regulations such as the Resource Curation Strategy for Plastics in 2019 and the Plastic Resource Circulation
Act in 2022 are becoming stricter every year, which means opportunities for market expansion and business growthfor European companies. In fact, Japan has declared that it will encourage recycling over incineration of waste plastics
and is implementing the European Green Deal policy and the New Circular Economy Action Plan. 35
The 4th Fundamental Plan for Establishing a Sound Material-Cycle Society36, which was approved by the Cabinet on
June 19, 2018, indicates measures to be implemented in a strategic manner. The target for the market size of business
related to a Sound Material-Cycle Society is 40 trillion JPY in 2025. One issue mentioned this plan is the shortage ofhuman resources for waste treatment and recycling. That there is a demand for a waste management system corresponding to the aging society, so a more automated waste collection and treatment system is needed.
Interest in European Knowledge
European companies have accumulated extensive experience and knowledge in plastic recycling due to their involvement in mature recycling markets. By sharing best practices, industry insights, and technical know-how, European
companies can support Japanese companies in building robust plastic recycling systems. This knowledge transfer canaccelerate the development of the plastic recycling sector in Japan.

35

JETRO (2023), “European Commission research institute publishes report recommending recycling over incineration for waste
plastic disposal”
36
MoEJ (2018), 4th Fundamental Plan for Establishing a Sound Material-Cycle Society
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In addition, since the capacity of plastic processing that was exported to the Asian region has not kept up, advanced
technologies and mechanisms from Europe will be required. 37 The business and technological cooperation potential
for plastic recycling in Japan is significant. Especially advanced sorting technologies for industrial and household wastes
will have good chances for the Japanese market (e.g. identification and sorting technologies for the mechanical recycling of black plastics).

b. Challenges and main obstacles for market entry
The Japanese waste management and recycling market is considered difficult. Addressing challenges and leveraging
the key success factors can increase the prospects for European plastic recycling companies to establish a strong presence and succeed in the Japanese market. Market entry challenges and main obstacles for European plastic recycling
companies in Japan are as follows:

37•

The Japanese recycling market is relatively mature, with established local players. European companies may
face the competition from Japanese companies that have already had well-established networks, references,
customer relationships, and market knowledge. Building a competitive advantage and differentiating themselves from local competitors can be a significant challenge. As a rule, Japanese tend to favor national products
and manufacturers. On top of that, Japanese are of course loyal to their existing business partners.

•

Japan's recycling market can be complex for foreign companies to navigate independently. Partnering withlocal Japanese distributors, agents, or joint ventures can provide European companies with market entry support, access to local networks, and distribution channels. Collaborative ventures can help European companies
establish a presence in the Japanese market and tap into the opportunities it offers.

•

Although tendering for public projects is common, it is difficult for a foreign company to win a contract. Obstacles include the lack of transparency in the tendering process, specific conditions that are difficult for foreign companies to meet, vague evaluation criteria, difficult access to relevant information and the requirement for prior domestic project references. The best strategy for a European company is therefore to workwith a Japanese company, familiarize itself with the tendering process and gather domestic references.

•High customer orientation and a good corporate image are prerequisites for successful business in Japan. The
waste processing industry in Japan is turning to more selection and globalization. Rather than a pure technology provider of sorting machines, it therefore can be recommended to take the position as secure solution
provider together with important customers. To do so it will be an urgent task to establish a trust relationshipwith customers introducing suitable machines for the customer’s needs.

•

Japanese customers are uncompromising when it comes to quality - even cosmetic faults and irrelevant to thefunction of the product. Japanese companies are quick to question the entire production and logistics process.
An additional delivery check ex works or on arrival in Japan to ensure "Japanese quality" is recommendable.
Also in the plastic recycling market in Japan, the quality standards are very high, and the requirements for thequality of recycled plastics are strict. When European companies enter the Japan market, it is important tohave the technology and processes to provide high-quality recycled plastics.

The Japan Research Institute (2020), Current situation and new business possibilities related to waste plastics in Japan
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In a country where "the customer is God", a high level of service and perfect quality are considered normal.
In this view, a deal is not considered closed after delivery, as Japanese customers usually expect free service
and after-sales support.

•

Relationships are the basis of business in Japan. It is important to show the right level of respect and to always
be polite and diplomatic. Patience is essential when dealing with business relationships, and adherence tolocal etiquette regarding gift buying is important. A close customer-supplier relationship needs to be established before the actual business can begin. Japanese are not risk-averse and prefer continuity and stability.
Mutual trust is the key, but it takes time.

•

Since decisions in Japanese companies are often the result of extensive consultations with many people fromdifferent departments throughout the organization, the decision-making process is particularly lengthy, andseveral meetings are needed to reach an agreement.

•

A main obstacle and challenge to doing business in Japan still is language. A trained, experienced Japaneseinterpreter is recommended for discussions and negotiations with potential business partners or customers.

c. Recommendations
When European plastics recyclers enter the Japanese market, it is essential that they tailor their approach to the specific needs and requirements of the Japanese market. Here are some key areas to focus on:
•
•
•
•
•
•

Advanced sorting and separation technologies
Material and chemical recycling
Focus on sustainability and circular economy
Circular economy consulting and solutions
Promoting a recycling society
Knowledge sharing

To be successful in the Japanese market, European companies should pay close attention to the following factors:•

Time and human resources are required: Entering the Japanese market requires significant financial, time andhuman resource investments. A thoughtful long-term approach is necessary to achieve success and make apositive impact in this demanding market.

•

Utilize supporting organizations such as embassies, chambers of commerce, JETRO, EBC and the EU Japan
Centre for Industrial Cooperation to access valuable market information and market entry assistance.

•

Customers are expecting high quality and an intensive after-sales-service, which should best be carried out by
a specialized Japanese service company. Existing customers need to be visited regularly, not only for businesspurposes but also to be visible and to maintain the relationship. It is important to continue to be seen as
demonstrating a serious willingness to operate in the Japanese market and to deepen the relationship withJapanese partners.

•

High quality products and services: Ensure that both products and associated services, such as sales, aftersales support and maintenance, are of an exceptionally high standard, as the Japanese market demands top
quality.

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Select reliable partners: Carefully select reliable partners to work with, as they can have a significant impact
on the success of market entry.

•

Build strong customer relationships: Focus on building and maintaining excellent customer relationships. Regular visits, including courtesy visits, are essential to build trust and visibility.

•

Build local networks: Work on building local networks and personal relationships as these play a vital role inbusiness development and success.

•Attend important trade fairs: Participating in prominent trade shows, such as the annual N EXPO in Tokyo, isessential for gaining exposure and networking in the waste industry.

•

Detail and image: Japanese consumers value attention to detail, so invest in areas such as professional interpretation services to ensure clear communication and a positive image.

•Highlight EU origin: Capitalize on the excellent reputation of European environmental technologies andproudly display EU origin, especially for companies from Germany, the Netherlands and the Nordic countries.

•

Interpreters: Never skimp on a highly qualified interpreter, as this person represents the company and needs
to understand and convey more than just words.

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8. References
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Greenpeace (2022): "What is the new plastic law?" https://www.greenpeace.org/japan/campaigns/story/2022/03/30/56393/ , 18.05.2023.
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Ministry of Economy, Trade and Industry (2020): "Green Growth Strategy for Carbon Neutrality by 2050",
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