Japan's pet care industry booms as 'fur babies' outnumber infants

Japan's pet care industry is experiencing a surge as the number of pets in the country surpasses that of children. According to market intelligence firm Euromonitor, the pet care market was worth 880 billion yen ($5.4bn) in 2025, up from 689.6 billion yen ($4.2bn) in 2020.

This trend has led to significant shifts in business strategy. Lucky Industries, Japan's oldest baby carrier manufacturer, launched its first line of dog hip carriers, Nu-i, in 2022. CEO Hiroyuki Higuchi noted that with fewer babies, it has become harder to innovate for infants, so companies are turning to pets.

Unicharm, originally a producer of hygiene products and diapers, expanded into pet diapers in 2001. Spokesperson Isshu Uehara said the pet care division had a profit margin of 15.4% in 2025, compared to 10.7% for personal care. Pet care now accounts for 17% of the company's total sales, with a target of 20% by 2030.

Sociologist Barbara Holthus of the German Institute of Japan Studies explained that the humanization of pets has grown due to declining birth rates, increased single-person households, and urbanization. People increasingly seek emotional connections with pets, treating them as family members.

At Tokyo's annual Interpets conference in early April, many attendees carried pets in strollers or slings resembling baby carriers. Companies like AirBuggy and Sweet Mommy have also adapted their baby product expertise for pet owners.

Lucky Industries employee Shin Ohta said his life now revolves around his dogs, and many friends talk about their pets. This trend reflects broader demographic changes in Japan, where pets are increasingly replacing children in families.