Japan's pet care industry is booming as pets now outnumber children under 15 by over 2 million, with the market reaching 880 billion yen ($5.4bn) in 2025, up from 689.6 billion yen in 2020. Companies like Lucky Industries, a baby carrier manufacturer, and Unicharm, known for diapers, have expanded into pet products, including dog carriers and pet diapers, to adapt to demographic shifts.
Pet humanization, where pets are treated as family members, drives demand for premium products and services. Unicharm's pet care division reported a 15.4% profit margin in 2025, outpacing personal care. Sociologists attribute the trend to declining birth rates, urbanization, and loneliness, with pets often replacing children or partners in modern households.
