How Falling Birth Rates Reshape the Diaper Industry

The U.S. birth rate hit a record low in 2025, and the diaper industry is feeling the squeeze. In this episode, Lucas and Luna examine how Procter & Gamble and Kimberly-Clark are adapting to shrinking demand for one of their most reliable product lines. P&G's Pampers brand saw volume decline roughly 5% in the last fiscal year, while Kimberly-Clark's Huggies struggled similarly. But instead of panicking, these consumer goods giants are pivoting — to premium products, new geographies, and adjacent categories like adult incontinence. Lucas breaks down the numbers: the U.S. diaper market has shrunk about 8% since 2020, but revenue has held steady because parents are buying more expensive diapers. Meanwhile, Kimberly-Clark's Depend brand is growing at over 6% annually as Baby Boomers age. The episode also touches on how smaller players and startups are trying to capture the remaining market with subscription models and eco-friendly materials. One concrete takeaway: the diaper industry is a live case study in how companies survive demographic decline — not by reversing the trend, but by following the money to where the population is actually growing: older adults. #DiaperIndustry #BirthRates #ProcterAndGamble #KimberlyClark #Pampers #Huggies #AdultIncontinence #ConsumerGoods #Demographics #AgingPopulation #BabyBoomers #PricingPower #SubscriptionModels #EcoFriendly #MarketShrinkage #Economics #FexingoBusiness #BusinessPodcast Keep every episode free: buymeacoffee.com/fexingo