Tokyo, Japan – A notable Japanese diaper manufacturer has made a significant decision to halt the production of diapers for babies within Japan, opting to shift their focus towards the growing market for adult diapers. Oji Holdings, the company behind this strategic move, joins a trend of companies adapting to Japan’s rapidly aging population and declining birth rates.
The shift in focus comes as adult diaper sales have consistently outpaced those for infants in Japan for over a decade. With the number of births in Japan hitting a record low of 758,631 in 2023, representing a 5.1% decrease from the previous year, the demographic landscape of the country is undergoing significant changes. This figure marks the lowest number of births in Japan since the 19th century, showcasing a stark contrast to the over two million births recorded in the 1970s.
In a formal statement, Oji Holdings revealed that its subsidiary, Oji Nepia, currently produces 400 million infant diapers annually, with production steadily decreasing since reaching a peak of 700 million diapers in 2001. Additionally, Japan’s leading diaper manufacturer, Unicharm, noted back in 2011 that adult diaper sales had surpassed those for babies, underscoring the ongoing shift in market demand.
The burgeoning adult diaper market in Japan, estimated to be valued at over $2 billion, reflects a broader trend of an aging population in the country. With nearly 30% of the population aged 65 or older, Japan now grapples with demographic challenges that pose significant implications for its society and economy. The prevalence of an older demographic is further underscored by the fact that last year, the proportion of individuals aged above 80 exceeded 10% for the first time.
Despite the discontinuation of baby diaper production in Japan, Oji Holdings plans to continue manufacturing baby diapers in Malaysia and Indonesia, where demand is anticipated to rise. The shrinking population in Japan, stemming from both an aging population and declining birth rates, has emerged as a critical issue for one of the world’s largest economies. Despite governmental efforts to address these challenges through increased spending on child-related programs and subsidies targeting young couples, boosting birth rates remains a complex and elusive goal.
Prime Minister Fumio Kishida has expressed concerns about Japan’s future, emphasizing the urgent need to address the demographic decline. The issue of declining birth rates is not unique to Japan, as other regions like Hong Kong, Singapore, Taiwan, and South Korea have also witnessed similar trends, with South Korea even boasting the lowest birth rate globally. China has also faced a decline in population for the second consecutive year in 2023, prompting the country to introduce incentives to encourage higher birth rates while grappling with the consequences of a decades-long one-child policy.