Aging Populations are Global issue, Claims Datamonitor

Aging populations around the world will increasingly shape society and its consumer markets, according to a new report from Datamonitor.

Traditionally, young adults have been a key target demographic group but marketers will need to adapt in order to maximise the huge potential of the seniors market, it says.

Datamonitor reveals that in every European country, a large proportion of the population is aged 50 and above.

The UK is a relatively young nation compared with the rest of Europe but the senior population still exceeded one third of the overall population in 2007, Datamonitor says.

The greatest proportional growth in senior population is expected to occur in the US, however, with a 1.5% CAGR among seniors.

In total, the seniors group comprises more than 90m people and is forecast to exceed 100m by 2012. This should make the senior consumer particularly worth targeting in terms of size alone, say researchers.

Matthew Taylor, consumer market analyst at Datamonitor and report co-author, said: “Seniors have many attributes in common with other age groups of consumers such as seeking good value for money. But, with substantial assets and significant liquid capital, seniors are likely to upgrade and choose premium products, particularly those empty nesters who have less obligation to support the family and children.”

Eco-aware

The aging of the baby boomers is driving a trend to a less materialistic lifestyle, says the report. With a growing consumer awareness of sustainability, products with a provenance and those made with natural ingredients or organic, are becoming increasingly popular among seniors. Taylor adds: “The appeal is not just related to the high quality image of such products; they also carry the signal that they are ‘danger-free’ and benefit from the natural substances they contain.”

Price is key

Price ranks highly in seniors’ purchasing decisions so demonstrating value for money is vital for targeting the seniors market, says Datamonitor.

Promotional offers and special offers or free samples are rated less highly, indicating seniors want a transparent price with clear product benefits.

Ease of use also scores highly, with more than 40% saying that a preferred brand or habit has a high influence on decision to purchase.

In terms of product choices, ready meals are popular among seniors. Older consumers are expected to become increasingly significant in this category as populations continue to age.

Taylor said: “There are a number of important reasons to believe that older consumers will increasingly rely on convenience solutions, and this will lead to a gradual reshaping of the market over time.”