Taiwan Faces Growing Demographic Crisis with Falling Birthrate

Taiwan’s birthrate has dropped significantly, leading to more pets than young children on the island. Current data shows more than half a million more pets than children. This demographic challenge is viewed as a national security concern by President Lai Ching-te.

In 2025, Taiwan had about 3.2 million pet cats and dogs, while the number of children aged 14 and under stood at 2.68 million. These figures come from an analysis by Sinyi Realty, using government data. This trend is seen globally; two-thirds of the world now lives in areas with fertility rates below the 2.1 children per woman needed for population stability without immigration, based on United Nations statistics.

Economic implications arise as older populations grow, straining pensions, healthcare, and social safety systems, while the working-age population declines. The situation is particularly severe in Taiwan.

In recent years, Taiwan surpassed South Korea as the nation with the lowest fertility rate. It dropped to 0.695 in 2025 from 0.885 the year before. In 2025, the island recorded about 107,000 births, far fewer than the numbers in the 1960s.

The Fur Baby Generation

Among Taiwan’s 22 counties and special municipalities, only seven have more children than pets. New Taipei City illustrates this trend, with about 597,000 pets, surpassing its youth population by around 162,000.

The disparity stems from fast development in New Taipei’s rezoned areas and resident migration due to high Taipei prices. High housing costs, smaller living spaces, and the financial burden of child-rearing have led young Taiwanese to delay or forego having children, opting instead for pets as companions.

This shift is altering consumer habits and housing needs.

“National Security Issue”

Leaders in Taiwan recognize the birthrate decline as more than a social issue. In May, President Lai called it a “national security issue” and announced extensive family support measures, including a monthly subsidy of about $150 per child under 18.

Demographers caution that financial incentives alone won’t solve the problem. Long working hours, high housing costs, and increasing living expenses in places like South Korea, China, and Japan must also be addressed. These issues persist there despite efforts to encourage childbirth.