Company history

Unicharm began in February 1961 as Taisei Kako, a maker of building materials in Kawanoe, Ehime, on the island of Shikoku. The turn came a year later: on a 1962 trip to the United States, founder Keiichiro Takahara saw sanitary products displayed openly on supermarket shelves and judged that a paper-processing firm could enter the business as a natural extension of its craft. In 1963 the company pivoted to sanitary napkins. The market it was walking into was already commanded by Anne — founded in 1961, backed by Mitsumi Electric’s capital and led by Yasuko Sakai — which held roughly 75% by 1964 by locking up the nation’s pharmacies through pharmaceutical wholesalers. The industry saw no room for a small Shikoku newcomer.

Takahara’s answer was not to fight Anne on that route but to leave it. He bet on the supermarket — a format that barely existed yet — reaching it through cosmetics and sundries wholesalers and even vending machines, and setting up the sales company Unicharm in 1965. In 1968 he launched the premium Charm Nap at some 50% above the going price, refusing the discount war. When wholesaler-led retailing gave way to supermarkets around 1970, the channel bet resolved decisively: in 1972 Unicharm took the lead in napkins with about a 28% share, and Anne — organized around the very wholesalers that were fading — could not follow the shift and was absorbed. The company renamed itself Unicharm in 1974 and listed on the Tokyo Stock Exchange’s second section in 1976 (the first section in 1985).

The second pillar was harder-won. After a failed 1969 diaper attempt, and with P&G’s Pampers seizing about 90% of the new disposable-diaper market from 1977, Takahara relaunched. In 1980, its first year of falling profit — Kao had entered napkins — ordinary profit dropped some 60% to only $4.4M (¥1bn). Yet in 1981 he staked $13.6M (¥3bn), three times that year’s profit, on the baby diaper Moony, reusing the supermarket network and adopting Sanyo Chemical’s high-absorbency polymer, and overtook Pampers within four years.

In June 2001 the founder’s eldest son, Takahisa Takahara — who had joined in 1991 after a spell at Sanwa Bank — became president. The founder stayed on as chairman, keeping representative authority until 2008, and died in 2018 at 87. The handover was framed less as a family matter than as a way to concentrate authority and speed decisions that the founder’s outsized presence had slowed, the better to accelerate the push into Asia begun in the 1990s.

Takahisa Takahara’s strategy had two moves: delegate product design and pricing to local managers, and mass-produce standard products tuned to local incomes rather than transplant Japan’s high-spec, high-price models. The expansion came fast — the Middle East (2005), a Korean joint venture with LG (2006), India (2008), Australia (2008), a 95% stake in Vietnam’s market leader Diana (2011), and a 51% stake in Hartz to enter the U.S. pet market (2011) — turning the footholds of the founder’s era into a genuine multinational.

In 2012 Unicharm’s overseas sales overtook its domestic sales for the first time — a rare feat among Japanese consumer-goods firms — twenty-eight years after the 1984 entry into Taiwan; the seeds the founder had planted had matured into the core business under the second generation. The company settled into two pillars: personal care (napkins, baby and adult diapers, skin care) at roughly four-fifths of sales, and pet care at about a sixth, the latter carrying the higher margin after the 2011 Hartz deal and a move upmarket in pet food. By the mid-2020s Unicharm was closing on its first $6.6B (¥1tn) year in sales.

The emerging-market disposition, though, cuts both ways. In 2025 the China feminine-care business was hit by an unexpected reputational shock — a state-television report that coincided with a sales period cut takings by about 30% and briefly turned the quarter’s China feminine-care margin negative. It was a clean illustration of the political and reputational risk intrinsic to developing markets showing up as earnings volatility, alongside the currency swings and falling-birthrate exposure that come with the same geography.

That is the backdrop to the strategic turn now under way. Takahara has argued that nonwoven and absorbent technology alone can no longer carry the company’s growth, and has set out to add dispersion and diversity — pushing pet care abroad, adult care across Asia, feminine-care share in emerging markets, and precision industrial materials. Sixty-four years after a Shikoku building-materials maker reasoned its way into sanitary napkins, whether the second generation can rewrite that long dependence on a single core technology is the question that will define Unicharm’s next chapter.