In response to Japan’s swiftly aging society, Oji Holdings has announced a significant shift in its manufacturing focus, as reported by the BBC. The company will discontinue the production of baby diapers domestically and instead prioritize the adult diaper market.
This strategic pivot mirrors a broader trend among Japanese businesses, driven by the nation’s persistently low birth rates.
For over a decade, sales of adult diapers have surpassed those of infant diapers, reflecting a fundamental transformation in Japan’s demographic landscape. The recent 5.1% decline in births in 2023, plummeting to the lowest level since the 19th century at 758,631, starkly contrasts with the two million births recorded in the 1970s.
Oji Holdings’ subsidiary, Oji Nepia, currently manufactures 400 million infant diapers annually, a figure on the decline from its peak of 700 million in 2001. Meanwhile, the growth of the adult diaper market has outpaced that of the infant segment since 2011, according to Unicharm data, underscoring distinct market dynamics.
With 30% of its population aged 65 or older and over 10% aged 80 or above, Japan faces a shifting consumer landscape that demands adaptation.
The company plans to maintain its baby diaper production operations in Malaysia and Indonesia to meet anticipated demand in those regions.
Economically, Japan confronts not only demographic hurdles but also the social ramifications of this crisis, a concern acknowledged by Prime Minister Fumio Kishida.
Moreover, the synchrony of declining birth rates across Hong Kong, Singapore, Taiwan, and South Korea, alongside China’s consecutive population decrease, highlights the global challenge of demographic shifts and the intricate solutions required.
