The 2001 output for Japan's paper and paperboard decreased 3.5% compared to last year's output. Also, domestic shipments dipped 2.8% to 29,670,000-tons, a figure reported by the Japan Paper Association. Citing weak demand for paper products and an overall economic slowdown, Japan's paper companies have experienced a market slump, the first of its kind in three years.

In addition, the relocation of electronics manufacturing to plants in China and other parts of Asia has contributed to the slip in Japan's paperboard consumption.