This Japanese company will soon stop producing baby nappies. Here’s why
Oji Holdings, a company in Japan renowned for its expertise in paper products, has announced its intention to cease the production of children’s nappies in September due to a significant downturn in demand.
It will instead focus on increasing the output of adult diapers. The company cited a significant decline in demand for children’s nappies as the primary reason behind this shift, with sales plummeting from a peak of approximately 700 million units in 2001 to 400 million units presently.
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This transition underscores a broader demographic trend in Japan, where sales of adult diapers have consistently surpassed those of baby diapers for over a decade. Recent population statistics further underscore the significance of this shift, with Japan witnessing a historic low in births at 758,631 in 2023, juxtaposed with 1,590,503 deaths.
Prime Minister Fumio Kishida has characterised Japan’s persistently low birthrate as an “existential crisis” and has pledged governmental support in various forms, including financial assistance for families, improved childcare accessibility, and expanded parental leave policies. Despite these initiatives, efforts to encourage larger families have yielded minimal results at both the national and local levels.
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Oji Holdings’ strategic realignment to cater to the growing demand for adult diapers amidst Japan’s ageing population reflects not only shifting market dynamics but also the broader socio-economic challenges facing the country. As Japan grapples with the implications of its demographic transition, businesses and policymakers alike are compelled to adapt to the evolving needs of an increasingly elderly population.