Baieido dates back to the Muromachi period (1338-1573) in Japanese history. During this period, the founder of Baieido, Kakuuemon Yamatoya, became a wholesaler of medicinal herbs in Sakai city. Sakai was a well-known trading port in ancient Japan in which incense trading was in high demand. In 1657, the founder named himself "Jinkoya Sakubei" and specialized in selling incense ingredients and incense sticks. "Jinkoya" (Aloes wood trader) was a name peculiar to Sakai, only medicinal wholesalers who specialized in incense were authorized to use this name.

Nippon Kodo's devotion to making fine incense follows a long and honored tradition that started more than 400 years ago and can be traced back to Jyuemon Takai, better known as Koju, a skilled artisan in the art and the principal provider of precious rare and exquisite aromas to the Emperor of Japan and his Court. Many of those pleasing and enduring high-quality incense fragrances, which the company continues to produce to this day, are based on the original formulas created by Koju.