Amid declining birth rates, Oji Holdings, a giant in Japanese diapers, is shifting its focus to adults

Oji Holdings, a well-known diaper maker in Japan, has made the bold choice to stop producing diapers for kids and concentrate on the adult diaper market. This calculated action is a reaction to the declining birth rates in the nation and the rising need for diapers among the senior citizen population.

Oji Holdings said that the large demand for adult diapers and the ongoing reduction in birth rates were the driving forces behind this choice. 400 million baby diapers are produced annually by the company’s subsidiary, Oji Nepia, however, since 2001, output has been cut in half. Oji Holdings intends to continue producing newborn diapers in nations like Malaysia and Indonesia, where demand is anticipated to rise, despite the decrease in output.

Japan’s falling birth rate—just 758,631 newborns born in 2023—a 5.1% drop from the year before and the lowest birth rate since the 19th century—makes clear the country’s demographic problems. The market’s dynamics have changed as a result of this trend, which has lasted for more than ten years, with adult diaper sales now exceeding those of infant diapers. The biggest diaper manufacturer in Japan, Unicharm, previously made news in 2011 when it revealed that adult diaper sales had surpassed those of infant diapers.

Japan’s declining birthrate and aging population have led to a problem. About 30% of people are 65 years of age or more, and last year saw a first for the percentage of those over 80 surpass 10%. The Japanese government has put in place a number of programs, such as free public education, financial aid for children, and financial incentives for couples to promote having children. These initiatives haven’t had much of an impact, however, since many young married couples choose not to have children, which adds to the drop in fertility rates.

Japan is not alone in facing demographic issues; South Korea, Hong Kong, Singapore, Taiwan, and other Asian nations are all facing dropping birth rates. In 2023, China, which has long struggled with overpopulation, had a population decrease for the second year in a row. As a result, China and Japan are actively looking for ways to encourage childbearing via a variety of programs and policies in order to address their dropping birth rates.