On June 5, 2026, the 63rd Annual General Assembly of the Japan Bread Industry Association was held, highlighting the procurement issues of packaging materials due to rising crude oil prices as a critical challenge for the entire industry. At this assembly, where the largest companies in the bread making industry gathered, active discussions were held regarding strengthened collaboration and specific countermeasures for these challenges, providing important guidelines for bakery operators to consider their future business strategies.
Serious Impact of Crude Oil Procurement Issues on Packaging Materials
The most notable issue at this assembly was the problem of rising crude oil prices directly leading to increased costs of packaging materials. Particularly, plastic-based packaging materials have recorded a 15-20% price increase compared to the same period last year, becoming a factor that pressures the management of small and medium-sized bakeries.
The Japan Bread Industry Association revealed that they are considering the following countermeasures for this problem:
- Strengthening price negotiation power through joint procurement of packaging materials
- Promoting industry-wide research for the development and introduction of alternative materials
- Formulating a phased transition plan to environmentally conscious packaging materials
- Reducing material usage through optimization of packaging design
These initiatives are highly likely to benefit not only large companies but also small and medium-sized bakeries, and are expected to contribute to maintaining the competitiveness of the entire industry.
Executive Changes and Industry Leadership Under New Structure
At the 63rd General Assembly, executive changes were made, and it was decided that the current chairman and vice-chairman would continue in their positions. Particularly noteworthy is the new appointment of President Nakatsuchi of Donq Co., Ltd. as auditor. He has extensive experience cultivated through managing a premium bakery chain, with particular achievements in urban store expansion and product development.
Under the new structure, the following priority issues have been outlined:
- Supporting operational efficiency through digital transformation promotion
- Strengthening industry-wide efforts to resolve labor shortages
- Standardization and improvement of food safety management standards
- Expansion of overseas expansion support programs
With Auditor Nakatsuchi’s appointment, the perspective of small and medium-sized bakeries is expected to be better reflected in management, and balanced development of the entire industry is anticipated.
New Approach to Problem-Solving Through Industry Collaboration
A major characteristic of this assembly was the strategic shift from conventional individual company responses to strengthened industry-wide collaboration. A strategy to utilize the comprehensive strength of the industry association was clearly presented for challenges such as rising raw material prices and labor shortages that are difficult for individual companies to solve alone.
The following specific collaborative measures were announced:
Expansion of Joint Purchasing System
A joint purchasing system will be established that expands coverage beyond major raw materials such as flour, sugar, and oils to include packaging materials and equipment parts. This will enable small and medium-sized bakeries to enjoy procurement price benefits comparable to those of large companies.
Technology Information Sharing Platform
The opening of a digital platform for sharing bread making technology and quality management know-how across the entire industry was decided. Information exchange regarding new product development and manufacturing process improvements is expected to become more active, leading to improved technical levels across the industry.
Standardization of Human Resource Development Programs
Through revision of the bread craftsman skill certification system and development of industry-unified training programs, improved personnel mobility and enhanced technical standards will be achieved.
Impact on Small and Medium-Sized Bakeries and Countermeasures
The measures decided at this assembly have the potential to bring significant benefits, particularly to small and medium-sized bakeries. However, active participation and preparation are necessary to receive these benefits.
Countermeasures that small and medium-sized bakery operators should consider immediately:
- Considering membership in related organizations of the Japan Bread Industry Association
- Preparing conditions for participation in the joint purchasing system
- Infrastructure development for digital transformation
- Formulating employee skill improvement plans
- Reviewing product and packaging design to reduce packaging material usage
Particularly regarding rising packaging material costs, immediate action is required. The transition to environmentally conscious materials can also appeal to consumers, so it’s important to view this as an opportunity to achieve both cost countermeasures and differentiation strategies.
Future Industry Outlook and Implications for Business Strategy
The direction shown at the 63rd General Assembly of the Japan Bread Industry Association indicates that the bread making industry has entered a new phase that emphasizes cooperation and collaboration rather than traditional competition-focused approaches. The industry-wide approach to common challenges such as rising raw material costs and labor shortages will become an important mindset for future bakery management.
For bakery operators, this change means the creation of new opportunities. By deepening collaboration with industry associations, cost reduction and technical improvements that were difficult to achieve alone become possible. Additionally, improved reliability across the industry can be expected through unified quality standards and human resource development systems.
Based on the industry direction shown at this assembly, the key to sustainable growth will be for each bakery to build business strategies that contribute to the development of the entire industry while leveraging their own strengths. The year 2026, which transforms the headwind of rising raw material costs into the new wind of industry collaboration, has the potential to be a historic turning point for the bread making industry.