In 2023, domestic production in Japan was 269,268 tons (down 7.9% from the previous year), exports were 69,164 tons (down 2.9%) and imports were 246,379 tons (down 3.2%), resulting in domestic demand of 446,483 tons (down 6.1%), all lower than the previous year. Production, exports, imports and domestic demand for nonwoven fabrics in Japan, as well as the ratio of imports to domestic demand, are shown in Table 1.

Demand for nonwovens in Japan has been declining for five consecutive years since 2019. In 2023, the share of imported nonwovens in domestic demand was 55.2%. The share of imported nonwovens remained at 53% from 2020 to 2022, but increased in 2023. The largest factor in the decline in demand for nonwovens is the decrease in diaper production, which declined 9.7% in 2023. In addition, demand for nonwoven fabric products such as masks and wet wipes fell sharply as the threat of the Coranavirus declined and the pandemic got under control. The production of nonwovens for medical care and hygienic use, which includes these products, declined significantly by 17.6% in 2023. Production of nonwovens for automotive applications, however, increased by 8.8% as domestic production of automobiles increased by 14.8%. However, all other applications were sluggish.

Nonwoven manufacturers are currently facing a difficult environment. Not only is domestic demand shrinking, but soaring raw material and energy costs are putting pressure on companies’ profits. Nonwoven companies are raising prices, but this has not been sufficiently effective and often results in higher sales but lower profits. The market, which shrank significantly in the wake of the Coronavirus pandemic, is on the road to recovery, but has not yet returned to its pre-infection state.

Some applications, such as diapers, have experienced large fluctuations in demand structure and are not expected to recover in the near term. Exports of disposable diapers to China have supported the expansion of domestic production, but production within China has increased, making exports from Japan unnecessary.

Declines in Japanese demand for baby diapers have influenced Oji Holdings to reportedly exit the local market and focus instead of adult diapers. The company reports that output of baby diapers has declined to about 400 million in recent years from a peak of roughly 700 million in 2001. Oji plans to boost production of diapers for adults in the domestic market while expanding its baby diaper business globally. Oji will continue making baby diapers in Indonesia and Malaysia.

The demand for disposable diapers is declining in Japan due to the declining birthrate. Japan’s government says children under the age of 15 accounted for less than 12% of the country’s population in 2022 while 30% were 65 years or older. There is no prospect for a recovery in production of diapers, and nonwoven manufacturers must consider their business strategies on this basis.