7 Reasons Why Japan Gives a Glimpse into the Future of Aging and Age-Tech
Guest article written by Debbie Howard – Chairman at The Carter Group-Japan Market Resource Network
I guess you could say I’ve had a longtime love affair with Japan. Since moving there way back in the mid-eighties, my fascination has rarely faltered. Working there in market research is a dream that continues, and my specialty these days is “all things aging.”
Being American (and a researcher!), I noticed early on many differences in the way older people were treated in Japan, and I’ve had a front row seat as the aging of Japan has progressed in its own unique cultural way over the past 30 years.
Japan has the most aged population in the world – as in nearly one-third of its population is already aged 65+. That compares to 23% in Italy, 16% in the US, and 12% in Israel. The numbers are only going to continue to increase in all developed countries.
In my work with The Carter Group, where we help international clients to understand Japanese consumers and illuminate their opportunities, we’re finding that this group of aging consumers is one of the most interesting and high-potential consumer segments in Japan.
As in other countries, rapid aging coupled with rising demand for medical and ageing care (and a shortage of healthcare workers) are proving to be an enormous burden on Japan’s economy.
Enter Age-Tech products and services – at the intersection of ageing and technology – which solve a variety of needs and challenges faced by those who are ageing, and also by those who care for them (whether professional or family caregivers).
In part because of the sheer numbers involved, everyone in Japan – from young to very old – is highly aware of the challenges of Japan’s aging society. As a result, both consumers and the government are very open-minded and supportive of technological solutions – everything from simple wearables for health tracking to robotic exo-skeletons that aid mobility, to social companionship solutions for ageing households, and beyond.
The Carter Group’s recent White Paper (The World’s Real-time Laboratory for Age-Tech) outlines the characteristics of the Age-Tech market, from the macro trends to user needs, and onward to persona and products that are already enjoying success.
Here are the top 7 reasons why we at CarterJMRN, like to call Japan the world’s real-time laboratory for Age-Tech:
1. The market size for the aging care market in Japan is expected to be a 101.3 trillion yen ($954 billion) industry by 2025 – larger than the markets for domestic automobile, finance, and consumer electronics. (Just for reference, this means that today, the aging care market in Japan is on par with that of the US, estimated at $648 billion by Pivotal Ventures in July 2021).
2. Japanese enjoy one of the longest lifespans of any country.
3. The culture of Japan also reveres and respects the aged, so the society exhibits less “ageism” than seen in Western countries.
4. Japan has done a great job with education and awareness-building of what it takes to have high quality-of-life with aging, resulting in individual accountability and a preventative viewpoint in healthcare management.
5. Japanese aged 65+:
– Are more physically active for longer
– Enjoy high QOL (physical health, mental health)
– Engage actively in learning new skills, and with hobbies and sports
– Possess higher purchasing power than their younger counterparts
6. Assisted living and nursing homes are less-well-penetrated, since “care of the aged” has not been “outsourced” as in the US and other markets; much of the care is done “at home”, and there is often more family interaction and mixing of generations as a result. Even so, household configuration has been shifting from multi-generational households to nuclear and single households since back in the early 60s; the reality is that many seniors live on their own, creating huge demand and potential for Age-Tech that can help them age in their homes safely and for as long as possible.
7. In Japan, “lack of eldercare” is a much more likely reason for a Japanese woman to leave the workforce than is “child care” (38% of Japanese females leave due to lack of eldercare, compared to 32% who leave due to lack of childcare), creating opportunities for support services and technologies that can help caregivers.
All this makes Japan a rich and fertile ground for testing new ideas and literally, gaining a view into the future, especially with aging and age-tech.
About the author: Debbie Howard – Chairman at The Carter Group-Japan Market Resource Network
Debbie has lived and worked in Japan for over 35 years, and translates qualitative research into clear strategic direction for international clients; over her career, she’s worked with most major brands that have entered Japan.
She is also a former caregiver on a mission is to change the way the world looks at caregiving so that the impacts are not so devastating. With the launch of Aging Matters International (AMI) and The Caregiving Journey in 2016, Debbie brought her market research acumen to the world of caregiving. Her first book (The Caregiving Journey: Information. Guidance. Inspiration.) targets individuals and goes far beyond the basics of logistics, wills and funeral plans.
Her second book (The Caregiving Crisis: What It’s Costing Your Business and How to Fix It) is due out in December 2021, and targets companies with practical ways forward in terms of supporting their employees who also serve as caregivers.
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