Nappy makers in Japan are switching focus to the rapidly expanding adult market after births dropped to a record low.

In the face of an ageing population, companies are targeting resources at this growth area.

The number of babies born in Japan fell for an eighth year running in 2023.

Japan’s population is forecast to plummet by about 30% to 87 million by 2070, with four out of every 10 people aged 65 or older, according to estimates.

Against this backdrop, the nappy business is changing direction.

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Over the five years to 2027, Japan’s market for adults is set to grow 16% to 98.9 billion yen (£480 million), while for babies it is estimated to shrink 8% to 84.6 billion yen (£410m), according to research firm Fuji Keizai.

It confirms a long-term trend.

Back in 2011, Japan’s biggest nappy maker, Unicharm, said its adult sales had overtaken those for babies.

And earlier this year, manufacturer Oji Holdings announced it would halt production of nappies for babies in the country in response to falling demand and instead focus on adults.

The group said it would continue to make baby nappies in Malaysia and Indonesia, where it expected sales to grow.

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While other firms are not taking such drastic action, the future for the industry appears clear.

Daio Paper marketing manager Kenji Nakata said: “We can expect the market for adult diapers to continue to grow, and therefore we are devoting our company’s resources to that market with a view to expanding these products.”

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The Japanese government has promised to take “unprecedented steps” to tackle the country’s declining birth rate, such as expanding childcare and promoting wage hikes for younger workers.

In recognition of the potential social and economic impact, and the resulting strain on public finances, Prime Minister Fumio Kishida has called the trend the “gravest crisis our country faces”.

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