Even Special Sale Flyers Hit by 'Digitalization' — 'Printing Industry' in Crisis, Business Closures at Record High; Sales Down 30% in 20 Years — A 'Triple Whammy' of High Costs, Paperless Trend, and Labor Shortages

Teikoku Databank conducted a survey and analysis of bankruptcies, business closures, and dissolutions in the "printing industry."

SUMMARY

In fiscal year 2025, business closures and dissolutions (exits) in the printing industry amounted to 230 cases (up 18.6%, 36 cases year-on-year), setting a new annual record. Combined with 91 bankruptcies (legal reorganizations, liabilities of 10 million yen or more), over 300 printing businesses exited the market annually. An increasing number of printing companies are giving up on continuing their businesses due to management challenges such as the advancement of "paperless initiatives" through digitalization, rising costs of materials like paper and ink, difficulty securing talent due to market shrinkage, and the severe aging of business owners.

Aggregation period: April 1, 2000, to March 31, 2025

Aggregation target: Bankruptcies with liabilities of 10 million yen or more, through legal reorganizations

Even Special Sale Flyers Hit by 'Digitalization' — 'Printing Industry' in Crisis, Business Closures at Record High

In fiscal year 2025, business closures and dissolutions (exits) in the printing industry amounted to 230 cases (up 18.6%, 36 cases year-on-year), setting a new annual record. Combined with 91 bankruptcies (legal reorganizations, liabilities of 10 million yen or more), over 300 printing businesses exited the market annually. An increasing number of printing companies are giving up on continuing their businesses due to management challenges such as the advancement of "paperless initiatives" through digitalization, rising costs of materials like paper and ink, difficulty securing talent due to market shrinkage, and the severe aging of business owners.

Printing companies, which have played a role in "conveying information widely and cheaply," have recently faced a decline in demand for paper slips and ledgers due to the introduction of the invoice system, and a decline in demand for flyers and direct mail due to the rise of apps and social media. There are comments such as "newspaper inserts have been replaced by digital ads on smartphones," indicating that the disappearance of paper demand is eroding business strength. Additionally, amidst soaring costs for printing materials like paper and ink, electricity, logistics, and personnel, many printing companies, fearing losing orders due to decreasing demand, could not pass on cost increases to sales prices. This led to a normalization of unprofitable orders, causing more businesses to abandon operations.

Furthermore, the traditional business model, predicated on "mass printing and cost reduction through massive capital investment," has become a heavy burden due to decreasing demand and lower operating rates. A mid-sized printing company specializing in food packaging materials for food manufacturers and fast-food chains abandoned self-reconstruction due to the burden of depreciation associated with large capital investments in previous years, combined with the significant impact of rising raw material costs. Additionally, some printing companies, in an attempt to compensate for declining core business demand, tried entering unrelated businesses such as health food sales or restaurant management but failed, paradoxically leading to further erosion of their financial strength.

Currently, some printing companies are shifting their businesses to "digital solution sales," leveraging their printing expertise for website construction, AR technology utilization, video production, and outsourcing. Others are seizing the current wave of closures and withdrawals as an opportunity, actively taking on new customers to gain "survivor benefits." They are also capturing localized needs, such as packaging printing for souvenirs, where demand is growing due to expanding inbound tourism, thereby increasing their sales. However, the overall sales of the printing industry remain at 70% of the peak in fiscal year 2007 (8.3 trillion yen). In the face of headwinds from shrinking paper demand, pioneering new businesses is a high hurdle for struggling small and medium-sized printing companies. With rising costs for paper, ink, and utilities continuing, and few signs of industry improvement, it is highly probable that more printing companies will abandon their businesses in the future.