<h5>Adults and diapers - how? why?</h5><p>Taking care of someone and being cared for is the circle of life. Babies (sometimes children) need diapers because they cannot control their bladder.</p><p>Similarly, some older people might find it difficult to control their bladder. In those cases, they may choose to use a diaper to avoid any untoward incidents.</p><p>A Japanese company named Oji Holdings (Oji) has announced that it will stop the manufacture of baby diapers and only produce adult diapers.</p><h5>But more babies = more money?</h5><p>One would assume that a diaper manufacturer makes most of its money by selling baby diapers. That’s likely to be true in most countries but not Japan.</p><p>You see, Japan has an ageing population with very low birth rates. Over the years, the demand for baby diapers has decreased while the demand for adult diapers has increased.</p><p>Oji has also seen the sales of baby diapers reducing significantly. So, it decided to double down on the production of adult diapers.</p><h5>Demand runs businesses</h5><p>Businesses are meant to make a profit (selling price - cost price). The time it takes to become profitable depends on the type of business.</p><p>In Oji’s case, they realised that baby diapers were not selling due to a lack of demand. Catering to Japan’s ageing population could have made them more money, so they decided to pull the plug!</p><p>This is not only the case with Oji but with every business. Sooner or later, they must become profitable or shut down.</p><h5>Japan’s getting old</h5><p>Japanese government officials have long been worried about the <a target="_blank" rel="noopener noreferrer" href="https://www.newsahoot.com/articles/why-is-japan-s-population-declining">ageing population</a> and low birth rate. A country is usually better off with more young people to lead it.</p><p>The government has taken many decisions like child raising allowances, giving more leaves, etc., to increase the birth rate.</p>

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

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