Under new leadership, Kyodo is accelerating its pivot from the declining paper-printing business toward higher-margin niches such as high-performance packaging materials, flexible packaging, and tube products. Margin gains in recent years already reflect this shift, and the company’s 10-year plan aims to scale these efforts further. The key question for investors: with DNP and Toppan well ahead in diversification, can Kyodo leverage its niche strengths to establish itself as a viable third player in a consolidating industry?

Kyodo’s renewed resolve:

Japanese companies have traditionally issued mid-term business plans—typically spanning three to five years—as a way to signal strategic priorities and operational targets to investors. However, this year marks a notable shift: a growing number of firms are releasing 10-year business plans.

One of these companies is Kyodo Printing.

I recently read an interview with the newly appointed CEO of Kyodo, published by Toyo Keizai on August 6, 2025. In the article, he outlined his vision for the next decade, anchored by the launch of the company’s “Long-Term Strategy and Medium-Term Management Plan,” announced on May 15, 2025.

What really caught my attention was the change in the Group Management Philosophy. The previous version was: “Centered on the printing business, we will contribute to society as part of the lifestyle, culture, and information industries.” The new one reads: “With creativity and passion, we will generate new value and realize a future together.” Dropping the reference to “printing business” feels like a major shift. It makes me wonder—can we read this as a signal that management is serious about growing its non-printing segments? It would be in line with what its two larger peers have already been doing.

The key question remains: Can Kyodo truly compete with the two industry leaders?  I’ve prepared a note for my clients that aims to answer this question.