Diaper change: Japan’s aging society is transforming the baby care business

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The world’s population is getting older in what the United Nations calls an “irreversible global trend,” driven by longer lives and smaller families.

The number of people aged 65 and older is expected to more than double to 1.6 billion globally by 2050, according to a UN report published last year. In Japan, this change is threatening one of the world’s largest economies as the percentage of older people grows and fewer couples have children. In early June, the country said the number of babies born fell for the eighth straight year, hitting a record low of 727,277 births in 2023 since Japan started compiling data more than 120 years ago.

One example of a company adjusting to this shift is Japanese manufacturer Oji Holdings, which announced in March it would stop producing baby diapers for the Japanese market later this year to focus on incontinence products for adults. The company will continue to run its overseas baby diaper business, it said. Their combined baby diaper sales in China, Indonesia and Malaysia have grown despite a slowdown in the domestic market, where the company sold 7.

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