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Summary This report analyzes elements of Japanese demographics including population density, ethnicity, education level, health of the

populous, economic status, average incomes, spending habits and other aspects of the population. Understanding the changes in Japanese society is critical to identifying niches and trends for all firms, especially for companies new to Japan and for those looking to introduce their products to the market. The most pressing demographic shift facing Japan today is that of the rapid aging of Japanese society. This is the result of low fertility rates, high life expectancies and the increasing trend toward smaller families. A number of factors have influenced this trend including the expansion of women in the Japanese workforce, the high cost of raising children and the associated education expenses, and the fact that many younger Japanese are choosing to marry late or not marry at all. The end result is a geriatric tidal wave that is set to engulf Japan in the years to come. The population of the country peaked at approximately 127.8 million in 2005 has now begun to decline. If current trends persist, the population is expected to drop below 100 million by 2046 and below 50 million by 2105. A series of articles published in 2007 by Reuters UK on Japans Aging Population examines the many impacts this demographic shift is likely to impart on Japan. In demographic terms, the number of seniors aged 65 and older is expected to increase sharply in the future and comprise of 37.7% of the population by 2050. The current generation of Japans Baby Boomers, furthermore, is likely to constitute a large consumer block that will have significant financial resources to procure a wide variety of goods and services.