Shiko and Daishowa Shiko Sangyo form joint venture in Japan's shrinking paper sack market
Japanese heavy-duty paper sack makers Shiko and Daishowa Shiko Sangyo established a joint venture holding company, Resac Holdings, on 1 October 2026, following a comprehensive business tie-up announced in July 2025. The venture aims to share procurement, equipment investment and workforce training as Japan's heavy paper sack market has shrunk from about 2.9 billion units in 1973 to about 930 million units in 2025.
Why this mattersConsolidation signals how small converters in a structurally declining paper sack segment are pooling capital and capacity rather than competing head-on for shrinking volumes.
- Japan's heavy paper sack market fell from about 2.9 billion units in 1973 to about 930 million units in 2025, according to the National Kraft Paper Bag Industrial Association
- Shiko (Osaka) and Daishowa Shiko Sangyo (Fuji, Shizuoka) set up joint venture holding company Resac Holdings on 1 October 2026
- The venture follows a comprehensive business alliance the two companies announced on 30 July 2025, including reciprocal plant visits
- Goals include joint purchasing for cost optimisation, shared capital investment and skills transfer, and more stable supply across the heavy paper sack sector
- Both companies make kraft paper sacks used for cement, food and chemical customers
- The companies say the holding structure is designed to allow other paper sack makers to join in future