Investing in Japan
Why Japan?
10 Advantages to Investing in Japan
10. Booming business in silver care and retirees
As Japan's population over 65 grows in the coming decades, these consumers will create demand in various sectors, such as biopharmaceutical foods, senior care services and others.
From 2007, approximately 6.9 million members of Japan's first baby boom generation (those born between 1947 and 1949) will begin to reach retirement age. Current estimates indicate that they will be paid more than 15 trillion yen in severance pay per year, amounting to a total of 50 trillion yen. The baby boom generation forms a fixed stratum of consumers, possessing personal financial assets totaling approximately 130 trillion yen, or ten percent of the total personal assets of the population. The members of this generation have a high level of interest in hobbies, education and travel, and are expected to become a key pillar of domestic consumption in Japan.
The growth of senior consumers is generating new needs in the medical, health and nursing care fields. The market scale of these fields is expected to increase to 75 trillion yen by 2010.
Concerns over rising health care expenses has led to increasing attention towards pharmaceuticals and biotechnology products and foods for improving health and therefore reducing medical expenses.
Changes in Japan's total population
Source: "Japan in Figures 2006," "Population Census 2005," Ministry of Internal Affairs and Communications
From 2007, approximately 6.9 million members of Japan's first baby boom generation (those born between 1947 and 1949) will begin to reach retirement age. Current estimates indicate that they will be paid more than 15 trillion yen in severance pay per year, amounting to a total of 50 trillion yen. The baby boom generation forms a fixed stratum of consumers, possessing personal financial assets totaling approximately 130 trillion yen, or ten percent of the total personal assets of the population. The members of this generation have a high level of interest in hobbies, education and travel, and are expected to become a key pillar of domestic consumption in Japan.
Japan's population pyramid
Source: "Annual Report of Population Estimates" (2004), Ministry of Internal Affairs and Communications
The growth of senior consumers is generating new needs in the medical, health and nursing care fields. The market scale of these fields is expected to increase to 75 trillion yen by 2010.
Market scale of welfare and health care
Source: "New Industry Promotion Strategy" (May 2004), Ministry of Economy, Trade and Industry
Number of users of nursing care facilities and services
Source: "Survey of Nursing Care Facilities and Businesses“(May 2006), Ministry of Health, Labor and Welfare
Concerns over rising health care expenses has led to increasing attention towards pharmaceuticals and biotechnology products and foods for improving health and therefore reducing medical expenses.
Changes in the market scale of biopharmaceuticals and foods for specified health use
Note:
(*1) Pharmaceuticals manufactured using biotechnologies, such as genetic recombination, cell fusion and cell culture technologies.
(*2) Foods that have been modified to reduce or eliminate the health risks associated with conditions such as high blood pressure, high blood sugar and obesity, and have received approval from the Ministry of Health, Labor and Welfare. Unlike ordinary foodstuffs, the health benefits of foods for specified health use have been verified in tests on human subjects, and figures for appropriate daily intake have been established. A wide variety of foodstuffs, including powders, yogurts and cooling drinks, are available as foods for specified health use, and can be purchased at ordinary supermarkets. As of February 21, 2006, 579 products were registered as foods for specified health use.
Source: "Market Surveys for Investment in Japan: Bio Technology" (May 2005), JETRO
(*1) Pharmaceuticals manufactured using biotechnologies, such as genetic recombination, cell fusion and cell culture technologies.
(*2) Foods that have been modified to reduce or eliminate the health risks associated with conditions such as high blood pressure, high blood sugar and obesity, and have received approval from the Ministry of Health, Labor and Welfare. Unlike ordinary foodstuffs, the health benefits of foods for specified health use have been verified in tests on human subjects, and figures for appropriate daily intake have been established. A wide variety of foodstuffs, including powders, yogurts and cooling drinks, are available as foods for specified health use, and can be purchased at ordinary supermarkets. As of February 21, 2006, 579 products were registered as foods for specified health use.
Source: "Market Surveys for Investment in Japan: Bio Technology" (May 2005), JETRO
- The world's second-largest market
- Sophisticated consumers with high purchasing power
- World-class companies and SMEs with unique technologies
- Loyalty and commitment to long-term partnerships
- World's center for technological innovation and product development
- Access to new Asian markets
- Favorable business climate
- Rapidly growing broadband society
- Expanding environmental market
- Booming business in silver care and retirees
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