The declining birth rates in Japan are starting to have significant economic impacts. Japanese diaper manufacturers are now turning their focus to the adult market as the birth rate continues to fall.
What Happened: This year, Oji Holdings, a leading Japanese diaper manufacturer, revealed its plans to halt baby diaper production and shift focus to adult diapers. Reuters reported Friday that this strategic shift is driven by Japan’s aging population and declining birth rates.
Another company, Daio Paper, is also witnessing a surge in demand for adult diapers. The company’s marketing manager, Kenji Nakata, highlighted the unique needs of adult diaper consumers and the company’s commitment to this growing market.
Despite the shift, Daio Paper will continue producing baby diapers but sees significant growth potential in the adult market.
With Japan’s birth rate hitting a record low last year, the population is projected to decrease by 30% to 87 million by 2070, with an estimated 40% of the population being 65 or older.
Japan’s adult diaper market is projected to expand by 16% to reach 98.9 billion yen ($612 million), by 2027, according to research firm Fuji Keizai. In contrast, the market for baby diapers is expected to decline by 8% to 84.6 billion yen during the same period.
In 2022, Tesla Inc. CEO Elon Musk expressed concern that Japan faces potential extinction if its birth rate fails to exceed its death rate, highlighting the country’s declining population as a critical issue.
Why It Matters: The declining birth rates in Japan are in line with the global trend of decreasing fertility rates, a phenomenon that has been a cause of concern for several world leaders and economists. Russian President Vladimir Putin has urged families in Russia to have more children to preserve the nation’s ethnic identity.
Meanwhile, in China, despite government pressure, women are choosing personal ambitions over state and family pressures to increase the country’s declining birth rates.
Musk has been vocal about his concerns over declining birth rates, stating that Japan’s population fall is a great loss for the world. Musk, who has fathered 12 children to date, including one with Neuralink executive Shivon Zilis, has emphasized the importance of addressing the declining birth rate as a critical issue facing civilization.
In 2022, shortly after Musk reiterated his concerns about Earth’s declining population, highlighting Japan’s ratio of “adult diapers” to “baby diapers,” another troubling metric surfaced in Tokyo. Data revealed that the waiting list for admissions to daycare facilities in Japan’s capital had reached a record low.
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This story was generated using Benzinga Neuro and edited by Kaustubh Bagalkote
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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