A leading Japanese diaper manufacturer, Oji Holdings, has made a significant decision to halt the production of diapers for toddlers and instead shift its focus to the adult diaper market. This strategic move comes in response to the dwindling birth rates in the country and the growing demand for diapers among the elderly population. Oji Holdings cited the continuous decline in birth rates and the substantial demand for adult diapers as key factors behind this decision. The company’s subsidiary, Oji Nepia, currently produces 400 million baby diapers annually, but production has halved since 2001. Despite the decline in production, Oji Holdings plans to continue manufacturing baby diapers in countries like Malaysia and Indonesia, where demand is projected to increase.
The demographic challenges facing Japan are evident in its declining birth rates, with only 758,631 babies born in 2023—a 5.1% decrease from the previous year and the lowest birth rate since the 19th century. This trend has persisted for over a decade, leading to a shift in the market dynamics, with sales of adult diapers surpassing those of baby diapers. Unicharm, Japan’s largest diaper maker, previously made headlines in 2011 when it reported that sales of adult diapers had exceeded those of baby diapers.
The ageing population and plummeting birth rates in Japan have evolved into a crisis. Approximately 30% of the population is aged 65 or older and the proportion of individuals above 80 years old exceeded 10% for the first time last year. The Japanese government has implemented various initiatives, including financial incentives for couples to encourage childbirth, free education and financial assistance for children. However, these efforts have not yielded significant results, as many young married couples opt to remain childless, contributing to the decline in fertility rates.
Japan’s demographic challenges are not unique, as other Asian countries such as Hong Kong, Singapore, Taiwan and South Korea are also experiencing declining birth rates. Even China, which has historically dealt with overpopulation, witnessed a decline in its population for the second consecutive year in 2023. Consequently, China, like Japan, is actively seeking solutions to address its declining birth rate through various initiatives and policies aimed at encouraging childbirth.
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