Bonds Across Generations! A Fragrant Legacy Woven Over 170 Years by a Traditional Incense Company

The President Himself Inspects on Site! Handpicked with Care!

Osagawa Nisaburo Shoten’s flagship product is powdered incense. The company processes imported agarwood into powders and chips, which are supplied to incense manufacturers or used in its own products. They offer over 40 varieties of powdered incense alone. In addition to incense, the company also produces and sells its own bath additives, soaps, and other products. Recently, they have also been actively engaging in OEM (original equipment manufacturing) for other brands.

Most of the raw materials for incense are sourced from overseas, primarily from Asia, with more than 20 types of materials handled, including agarwood, sandalwood, and medicinal herbs.

“The regions where fragrant wood is grown are quite limited. We source materials from countries like Thailand, Vietnam, Cambodia, India, Indonesia, and Malaysia. For sandalwood, we procure it from India, Indonesia, and Fiji. Although there are sandalwood trees in Japan, unfortunately, they don’t produce any fragrance,” explains Mr. Tanaka.

When selecting suppliers, President Tanaka personally visits the sites to assess the scent (kōkō, or incense listening) and confirm the quality. Only materials approved by him are processed into powders or chips and supplied to incense manufacturers. For raw materials that could lose their fragrance if processed by machines, the company adheres to traditional methods, taking time to craft them by hand.

“We inspect every single batch of raw materials we procure. If there’s anything with an unusual scent, we immediately discard it. If we find debris, we remove it with tweezers. All sorting is done by hand to ensure the highest quality. We never compromise,” says Mr. Tanaka.

That said, it’s hard to imagine that an amateur could judge the quality of raw materials by scent alone. The ability to discern such details, along with the delicate blending techniques, is what defines the strength of Osagawa Nisaburo Shoten, a company with a history spanning 170 years.

From Programmer to the Incense Industry

Founded in Ansei 1 (1854), Osagawa Nisaburo Shoten began its journey in Sakai, transitioning from a pharmaceutical trade business to selling raw materials for incense sticks and producing and selling powdered incense. The company’s focus on wholesale distribution of raw materials led to the establishment of Osagawa Shoten by its first-generation owner, Sozaburo Osagawa, who relocated and reopened the business. The current president, Takeshi Tanaka, represents the eighth generation of leadership. 　Tanaka is his maternal family name. Surprisingly, before joining Osagawa Nisaburo Shoten, Mr. Tanaka worked as a programmer.

“I initially had no intention of taking over the family business,” Mr. Tanaka explains. “After graduating from a computer technical school, I worked as a programmer. However, there was no one else to take over the company, and I couldn’t imagine leaving a business with such a long lineage to someone outside the family. I knew I’d have to return at some point. Ultimately, I quit programming after three years and decided to come back to Osagawa Nisaburo Shoten. I was 27 at the time.”

When he first joined the company, Mr. Tanaka admits he had no understanding of its operations. Although he had some experience helping out as a child, he recalls that, upon officially joining, he was practically a novice.

“I didn’t know anything about this industry,” he reflects. “Compared to the IT industry, where I worked with cutting-edge technology, this field felt very old-fashioned. I realized that if the company stayed stuck in its outdated ways, younger employees wouldn’t want to stay, and they’d eventually leave. It gave me a real sense of urgency,” says Mr. Tanaka.

To reform the company’s insular structure, Mr. Tanaka introduced modern labor practices, such as paid leave and adjustments to working hours to ensure a fair schedule. He focused on creating a workplace where employees could work comfortably and actively recruited younger staff. As a result, the average employee age is now 30, with more employees in their twenties, marking a successful generational shift. Currently, the company employs 13 people, including Mr. Tanaka himself.

“Of course, I’m not trying to eliminate everything from the old ways,” he says. Mr. Tanaka is deeply aware of the unique and admirable aspects of the incense industry. One of the most striking points in our conversation was the generational “relay” relationships within the industry.

“There are so many warm-hearted people in this industry. The relationships go far beyond simple business transactions; we build deep, familial bonds with our clients. For instance, my father taught the son of a client company, that son taught me, and now I am teaching his child. There’s this strong, intergenerational ‘relay’ that ties us together,” Mr. Tanaka explains.

Protecting this industry, he says, is directly tied to preserving their way of life. He aims to foster a community that values its customers and suppliers, sharing his passion and attachment to the incense industry.

Welcoming the Incense Boom! Sharing the True Essence of Incense

The habit of burning incense indoors has grown since the COVID-19 pandemic. However, authentic incense is produced only in limited regions, and the industry remains very small. Many of the imported products labeled as incense during the recent boom are, in fact, made using synthetic or oil-based fragrances. Despite this, Mr. Tanaka sees this trend as an opportunity to raise awareness about incense.

“It would be amazing if people who didn’t know about incense start using it and then discover that what we offer is completely different,” says Mr. Tanaka. “When customers tell me, ‘Wow, using real raw materials makes such a difference!’ or, ‘I didn’t even know what real incense was,’ it makes me genuinely happy.”

Still, the industry faces significant challenges, and Mr. Tanaka expresses his concerns:
“The decline of Buddhist rituals is a major issue for the industry. Family funerals are becoming more common, and there’s a trend of families not inheriting household altars or even closing graves entirely. This has reduced the demand for incense. As a result, many companies have seen their sales volume decrease, and some have gone out of business due to a lack of successors,” he explains.

In such a challenging environment, how does Osagawa Nisaburo Shoten plan to thrive?

I don’t want to create something that will shine brightly like a firework and then fade away.

The main lineup of powdered incense includes 20 varieties. These incense products are not based entirely on their original recipes, as some raw materials have been discontinued, certain scents have deteriorated and needed adjustments, or others became too expensive to use due to rising costs. While preserving the traditional recipes, the company carefully refines them to create the best possible blends for the present, crafting what they consider “authentic” incense.

“We want our customers to use our products for a long time. To achieve that, we believe it’s crucial to pass down our techniques and values to the next generation in a sustainable way. I don’t want to create something that will shine brightly like a firework and then fade away. I hope to keep sharing the beauty of Japanese fragrances for many years to come,” says Mr. Tanaka.

Recently, the company has started accepting OEM production of incense made with 100% natural raw materials while maintaining high quality, actively welcoming external collaborators. This shift is notable in an industry traditionally known for its closed nature, where OEM production was previously unthinkable. Additionally, to introduce more people to the charm of incense, the company has been focusing on new product developments that incorporate incense fragrances into everyday items, such as sprays, solid perfumes, soaps, and bath additives.

Eyeing Global Expansion! Striving to Become an Indispensable Company Through Incense

The company is now considering expanding its OEM business into overseas markets. Recently, they participated in a large-scale cosmetics exhibition held in the United States. Many attendees showed interest in incense, giving the company confidence that Japanese culture is being well-received abroad. In fact, with the growing recognition of spiritual values and the importance of aromatherapy, international demand for incense has been rising in recent years. Incense is commonly used in rituals and ceremonies at temples, churches, and monasteries.

When asked about language barriers in overseas markets, Mr. Tanaka responded with a wry smile, “I can’t speak English.” Fortunately, one of their employees is proficient in handling legal procedures and drafting contracts in English, which enables smooth negotiations.

Mr. Tanaka concluded the interview with the following:
“We’ve built strong relationships with both our suppliers and customers over many years. I believe my role is to continue serving as a bridge between them. Our goal is to become an indispensable company through incense, contributing to the preservation and development of the industry as a whole.”

Osagawa Nisaburo Shoten continues to explore new possibilities while safeguarding the essential aspects of “fragrance culture.” Their approach is as profound and enduring as incense itself.