JETRO’s survey on Japanese-affiliated companies in Europe FY2026

Japanese-affiliated companies face high costs and geopolitical risks but expect easing of sustainability related regulations.
Released on March 2026, the purpose of JETRO’s annual survey is to identify actual conditions in the activities of Japanese-affiliated businesses operating overseas and to provide the results to a wide range of Japanese companies and policymakers.

Key Findings

Companies forecasting “profit” in 2025 declined slightly in Europe as a whole, but there was a strong performance in Central and Eastern Europe, supported by manufacturing.

• The number of companies expecting “expansion” as their future business direction increased only slightly.
• There are more companies working on human rights due diligence and decarbonization activities, but fewer preparing or planning to do so.
• CSRD and PPWR have a significant impact among sustainability related regulations in Europe; deregulation is expected to reduce costs and burdens.
• Significant increase in attention to AI regulation, and significant increase in the use of AI, with more than half already using it.
• “High labor costs” largest operation challenge in Western Europe
• Poland is a promising sales destination for seventh consecutive year: ongoing trend of procurement from country of location or neighbouring countries.

Source: JETRO
https://www.jetro.go.jp/en/reports/survey.html 

Published: June 2026