The country, facing a record low birth rate, saw adult diaper sales surpass those for babies over ten years ago. With 758,631 births in 2023, the lowest since the 19th century, Oji Holdings' subsidiary, Oji Nepia, will cease its 400 million annual baby diaper production.

This move mirrors Unicharm's 2011 shift when adult diaper sales overtook baby ones. The adult diaper market is expected to exceed $2 billion, reflecting Japan's demographic shift, where nearly 30% are aged 65 or older.

Despite this focus, Oji Holdings will continue baby diaper production in Malaysia and Indonesia, anticipating growth there. Japan’s struggle with a shrinking population, due to low birth rates and an ageing society, poses threats to its economy.

Government efforts to reverse the trend through subsidies and programs have yet to yield results, amidst complex causes like lower marriage rates and the high cost of child-rearing.

Prime Minister Fumio Kishida emphasizes the urgency of addressing this societal challenge. This trend isn’t unique to Japan; declining fertility rates are seen across Asia, including in China, which also faces demographic issues despite policy changes to encourage higher birth rates.