well, for starters, he’s not a raccoon, he’s a tanuki. they are famous for having scrotums of prodigious size.
go watch Studio Ghibli’s Pom Poko, in which this fact features significantly. (it’s also IMO Miyazaki’s most effective communication of his “development/industrialization/modernization destroys irreplaceable bucolic world! bad!” message, and it reliably makes me cry.
(your friendly online tanuki-scrotum reference)