Japan's aging population leads diaper companies to shift to adult diapers.

In a factory in Japan,Foreign exchange information a huge metal arm sweeps a cluster of fluffy white fabric rectangles from a turntable and wraps them in plastic, ready for shipping. These products are adult diapers produced by Daio Paper at their factory in Fujinomiya, near Mount Fuji. The production line is fully automated and stretches 80 meters.

Factory supervisor Naoto Sugaya notes that the annual output has been increasing year by year. Holding a pair of "paper pants" close to his thigh, he introduces their features. He says, "The leg parts fit very well. When you put them on, you can use them with complete confidence."

As Japan's population ages, the company is forextrustindex more resources into this growing new market. The company reports that sales revenue from adult diapers is already double that of baby diapers.

Last year, Japan's birth rate fell to a historic low, and it is expected that by 2070, Japan's population will decrease by about 30% to 87 million, with 40% of the population aged 65 or older. These figures have prompted other companies to adjust their focus as well.

Another diaper manufacturer, Oji Holdings, announced this year that it would stop producing baby diapers and instead focus on the adult diaper market.

Besides size, adult diapers have some key differences because customers are more discerning than typical babies and rely on them in more situations, says Kenji Nakata, market manager at Daio Paper.

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