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The Shift in Market Focus: From Babies to Adults – Impact on Aging Society

The decision by a Japanese nappy maker to stop producing diapers for babies and instead focus on the adult market is reflective of the demographic challenges facing an aging society. Oji Holdings’ move is a clear indication of the shifting dynamics in Japan, where birth rates are plummeting and the population is rapidly aging.

The declining birth rates in Japan, with the lowest number of births recorded since the 19th century, have prompted companies like Oji Holdings to rethink their strategies and tap into the growing market for adult nappies. The sales of adult diapers have surpassed those for infants in Japan for over a decade, highlighting the demand in an aging population.

With almost 30% of the Japanese population aged 65 or older, and the proportion of those above 80 surpassing 10%, the need for products catering to this demographic is on the rise. The adult diaper market in Japan is now estimated to be worth over $2 billion, a clear indication of the potential for growth in this segment.

The decision by Oji Holdings to continue producing baby diapers in countries like Malaysia and Indonesia, where demand is expected to grow, shows a strategic approach to balancing the declining birth rates in Japan with opportunities in other markets. However, the shrinking population and low birth rates in Japan pose significant challenges for the economy and society as a whole.

The demographic challenges faced by Japan are not unique, with countries like Hong Kong, Singapore, Taiwan, South Korea, and China also experiencing declining birth rates. Governments in these countries have introduced various incentives to boost birth rates, but the complex reasons behind the trend, including changing social norms, increased costs of raising children, and more women joining the workforce, make it a multifaceted issue.

Prime Minister Fumio Kishida’s acknowledgment of the critical juncture Japan is facing in terms of maintaining societal functions underscores the urgency of addressing the demographic challenges. The impact of aging populations and declining birth rates on economies, social structures, and healthcare systems is a global phenomenon that requires innovative solutions and collaborative efforts.

As companies like Oji Holdings adapt to the changing market dynamics and demographic shifts, it highlights the need for a comprehensive approach to address the implications of an aging society. From healthcare and pension systems to workforce participation and family support policies, understanding the broader impact of demographic changes is essential for ensuring sustainable growth and development in the face of shifting population trends.