Oji Holdings to exit baby diaper market in Japan, shift to adults

Major Japanese paper maker Oji Holdings says it will exit the domestic baby diaper business due to fewer births and falling demand. It plans to focus instead on adult diapers.

Company subsidiary Oji Nepia will discontinue production and shipment of the products in September.

Oji Holdings says its annual output of baby diapers has declined to about 400 million in recent years from a peak of roughly 700 million in 2001.

Japan's government says children under the age of 15 accounted for less than 12 percent of the country's population as of 2022.

In contrast, nearly 30 percent were 65 years or older. Oji plans to boost production of diapers for adults in the domestic market.

The company aims to expand its baby diaper business overseas, where demand is expected to grow.

It says it will keep producing in Indonesia and Malaysia.