Adult diapers hold promise for investment.
While there are lots of local, professional financial advisers with many different opinions, it’s possible that not all firms pay for independent research. This independent research is one of the features that helps investors see the larger picture and make appropriate, if not more informed decisions. The independent research has been used with investors since 1999 when I became Master Certified and a Charter Member with the H S Dent Advisor’s Network. This week we will look at how demographics and diapers go hand in hand.
Diapers instinctively make us squeamish. We don't want to smell them, see them or be around them. But what if they were the next big opportunity!?
In Japan, more than 20% of the nation's nearly 130 million people are over age 65, and the market for adult diapers is growing at 6% to 10% per year.
Adult diapers are more profitable than their baby counterparts because adults will pay a higher price and can potentially be using them for many years. Even better, there is a technological innovation coming in the world of diapers.
Diaper maker Pixie Scientific is launching a diaper for babies that contain urine testing strips positioned on the outside of the diaper. Parents can scan the results via a smartphone with the company's Smart Diaper app. The app will notify the user of the test results and send an alert if the wearer needs medical attention.
Seeing the potential for a product that could serve both the incontinence and at-home health monitoring needs of the elderly, our friends at Dent Research reached out to Pixie Scientific to see if they had the same idea. Dixie reported they initially made the diaper for children, but after being inundated with questions about adult sizes, the company is now focusing on developing the Smart Diaper for all ages. We are not surprised.
Whether Pixie Scientific is a good company or a bad company is not the point. The issue here is the changing nature of demand as our country ages. Japan has the oldest population of all the developed countries, but the rest of us - the U.S. and Europe - are not far behind. If Japan is waist-deep in the adult diaper industry, then the rest of us are just putting our first foot in.
We watch consumer habits because we believe people, and how they spend money, drive the economy. Consumer spending patterns move the ebbs and flows of industries and sectors. We can spot these trends by watching how people shift their buying habits as they age.
As the mass of Baby Boomers moves into old age, industries that cater to this group will grow and expand. This will provide new investment opportunities for the makers of products like adult diapers. You have the advantage of being part of a team that has been tracking these changes for years so we can spot the opportunities as they arise... even if they come in a diaper.
Certain statements contained within are forward-looking statements including, but not limited to, statements that are predictions of or indicate future events, trends, plans or objectives. Undue reliance should not be placed on such statements because, by their nature, they are subject to known and unknown risks and uncertainties.
This information contained in this newsletter is general in nature and should not be construed as comprehensive financial, tax, or legal advice and the opinions expressed are not endorsed by NPC. As with any financial or legal matter, consult your qualified securities, tax, or legal representative before taking action.
While there are over 3,000 local financial advisers with many different opinions, it’s possible that not all firms in the Conejo Valley pay for independent research. This independent research is one of the features that helps investors see the larger picture and make appropriate, if not more informed decisions. The independent research has been used with investors in the workshops the firm conducts since1999 when John Grace became Master Certified and a Charter Member with the H S Dent Advisor’s Network.
“Master Certified” references those who pay a fee to learn about various economic trends and have demonstrated by passing tests the ability to effectively answer.
The information presented here has been provided by HS Dent. HS Dent is an economic research company that uses various techniques to study the potential impact of various changes in demographic trends on our economy. No one person or strategy can accurately predict market movements.
Securities and advisory services offered through National Planning Corporation (NPC), Member FINRA/SIPC, a Registered Investment Adviser. Investor's Advantage Corp, HS Dent, and NPC are separate and unrelated companies.
Investments are inherently risky and will fluctuate with changes in market conditions. Consideration should be given to the possible loss of a part or all of principal invested.