Full Breakdown
Japan’s Baby-Product Makers Turn to Pets Amid a Demographic Decline
7/13/2026, 9:47:54 PM
Core Shift: Companies Target Pets
Japanese firms that have long supplied baby carriers, strollers and diapers are now launching equivalent pet-care lines. Lucky Industries introduced its first dog-hip carrier, “Nu-i,” in 2022 after sales employee Shin Ohta adapted baby-carrier expertise for dogs. At the Interpets exhibition in Tokyo’s Big Sight centre, dozens of brands displayed pet strollers, dryers and organic treats, signalling a market that now outnumbers children under 15 by more than two million. Euromonitor estimates the pet-care sector was worth 880 billion yen ($5.4 bn) in 2025, up from 689.6 billion yen ($4.2 bn) in 2020.
Demographic Drivers
Japan’s birthrate continues to fall, and households with only one child have risen from 10 % in 2002 to nearly 20 % in 2021. A national survey links this trend to more single-person and childless dual-income families. Sociologist Barbara Holthus notes that fewer children and increasing urbanisation concentrate emotional investment on pets, turning them into “multi-species families.”
Business Responses and Profitability
Unicharm, originally a maker of feminine hygiene products and disposable diapers, entered pet diapers in 2001 and now counts pet care as a primary growth engine. Its 2025 financials show a 15.4 % profit margin for pet products versus 10.7 % for personal care, with pet care representing 17 % of total sales and a target of 20 % by 2030. Lucky Industries CEO Hiroyuki Higuchi emphasizes that, “Compared to the baby goods market, the pet sector is doing better,” and describes pets as “babies… part of the family.”
Social Implications
The shift reflects a broader “pet humanisation” trend: consumers seek premium items to extend pets’ lifespans and share daily experiences, from dining together to visiting cafés. As families shrink, pets increasingly fulfill roles once occupied by children, partners or playmates, reshaping Japanese household dynamics.
Verbatim Quotes
- “My dog often stops walking during our strolls. I would carry him every time, but his weight of nearly 5kg [11lbs] started to become a real burden,” — Shin Ohta, Sales, Lucky Industries
- “I knew there had to be a better way.” — Shin Ohta
- “Japan’s birthrate is declining,” — Isshu Uehara, Spokesperson, Unicharm
- “Customers want to buy premium products to extend pets’ lifetimes, and share experiences with them, like dining together or going out to cafes and friends’ houses,” — Isshu Uehara
- “Before, a dog or cat might have just been an additional family member, but with fewer other family members and fewer children in the house, the focus becomes very concentrated on this animal,” — Barbara Holthus, Director, German Institute of Japan Studies
