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