Diaper Manufacturer Targets Adults

Japan’s ageing population and low birth rates have decreased baby diaper demands.

Diaper Manufacturer Targets Adults

Adults and diapers - how? why?

Taking care of others and being cared for is a part of life. Babies wear diapers because they can’t control their [[bladders::A bag-shaped organ that collects urine before passing it out of the body.]].

Older people sometimes face the same issue. So, they might use diapers to avoid unpleasant situations.

A Japanese company named Oji Holdings (Oji) has announced that it will stop making baby diapers and only produce adult diapers.

But more babies = more money?

In most countries, diaper companies earn the most by selling baby diapers. But it's different in Japan.

Japan has an ageing population with very low [[birth rates::The number of births taking place per 1000 people in a country. It's an important measure to predict a country's future population.]]. So, there is less demand for baby diapers, while the demand for adult diapers has risen.

Oji also saw its baby diaper sales fall. So, it decided to increase the manufacturing of adult diapers.

Demand runs businesses

Imagine you have a candy shop where you make and sell candies. You make two types of candies- Candy A and Candy B equally to sell them.

Soon, you realise that Candy B has less demand than Candy A, which causes you to lose money. So, you focus only on Candy A to earn more [[profits::The extra money earned by a company after it has recovered the cost of producing and selling its goods or services.]].

Similarly, companies stop manufacturing products in low demand, which causes them to lose money. Instead, they focus on high-demand products to earn money.

Quick Revision

  • Older people may need diapers just like babies when they can’t control their bladder.

  • Japan has fewer babies and more older people, so adult diapers are in higher demand.

  • Oji Holdings will stop making baby diapers and focus only on adult diapers.

  • Companies make more of what sells — they follow demand to earn profit.

Knowledge checkpoint

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