Japan’s veterans are changing the baby care business

Japan’s aging population crisis is looming large. This is affecting the economy. On the one hand, the country’s aging population is increasing. On the other hand very few couples are interested in having children.

It was reported in early June that Japan’s birth rate has fallen for eight consecutive years. The country saw a record low birth rate in 2023. Only 727 thousand 277 children were born.

A few months ago, Japan reported that one in ten people is 80 or older. Japan has the title of the country with the highest population in the world. About 30 percent of Japan’s total population was 65 or older last year.

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  • One in 10 people in Japan is over 80 years old
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In June 2023, Japanese Prime Minister Fumio Kishihida announced a multi-billion dollar plan to encourage families to increase the birth rate. The country’s authorities are trying to solve the crisis that has arisen mainly based on population. In Japan, as the labor force is shrinking, on the other hand, the needs of the elderly are increasing.

An aging population is playing a role in changing the consumer product market. The demand for adult diapers in Japan is growing at a significant rate. However, the demand for baby diapers has decreased.

According to market research provider Euromonitor International, the global adult diaper market will be worth $12.8 billion in 2023. It is expected that this market value may increase to 15.5 billion dollars by 2026.

In 2023, Japan’s adult diaper market was valued at $1.7 billion, and by 2026, the country’s market value could reach $1.9 billion, which is 12 percent of the world.

Japanese company OG Holdings has taken steps to adapt to this change. In March, it announced it would stop making baby diapers in the Japanese market and focus on products for adults.

However, the company said it will continue to manufacture baby diapers for overseas markets. In 2023, sales of baby diapers in the domestic market decreased, but their sales increased in China, Indonesia and Malaysia.

Other Japanese companies are also trying to adapt to this change. For example, the country’s electronics company Panasonic is researching and developing products for the elderly.

Moreover, kitchenware manufacturer Zojirushi has launched a range of products with senior citizens in mind.

Japan is not the only one with an aging population in Asia. South Korea is also in crisis in this regard. According to 2023 estimates, the number of children per woman in the country is 0.72. South Korea has recently launched a new ministry in this regard. Birth rates have also fallen in Hong Kong, China and Taiwan.

Source: CNN