Why ignore 810 million potential consumers?

Colin Milner

For the past 66 years, corporations around the world have profited from the baby boomer market. As baby boomers now swell the ranks of the 810 million people aged 60 and over, their economic impact continues to be felt. “Thirty years ago there were no ‘aged economies’ in which consumption by older people surpassed that of youth. In 2010, there were 23 aged economies, and by 2040 there will be 89.” (UNFPA and HelpAge International)

An example of this can be found in the US where the older market represents more than US$ 2.3 trillion in spending power (Age Wave), it is 47 times richer than its younger counterpart (Pew Research Center), controls roughly 50% of all discretionary income (Deloitte), and dominates 1,023 out of 1,083 categories in the consumer packaged goods industry alone (Nielsenwire).

On paper there is no reason to neglect this sector. Yet that is exactly what occurred in a recent World Economic Forum survey. Respondents ranked population ageing highly as an issue thought to be underestimated in current times. Of particular interest is the fact that survey respondents from business backgrounds – the single largest group of respondents – completely neglected the topic. In other words, other sectors of respondents disproportionately raised this trend enough for it to come fourth on the survey’s list.

Think about this for a moment. Many corporations have profited from these consumers for more than 50 years, yet today they are ignoring this group. Why?

Is it that these businesses cannot see the economic power of the older consumer? To answer this question we need look no further than the following findings:

  1. Many companies are either not aware of the potential or have failed to respond and adapt to the changing market and demand for products.” (Ageing Well Network)
  2. A widespread lack of thought exists in this area, resulting in “limited availability of goods, products and services appropriate for people in older age groups”. (Futureage)
  3. 88% of survey respondents in the hospitality and leisure industries claimed to be highly engaged with the over-65s. However, almost 62% did not offer any specific product or service for these consumers. The research indicated that 82% of survey respondents with no offering for the older consumer had no plans to introduce any. The main reason was because they simply had not considered it. (Barclays Corporate)

What does this mean to you? Immense opportunity! By creating or adapting your products and services to meet the needs, wants, dreams, desires and expectations of an ageing world, your organization will profit from the “aged economy” now and well into the future.

Author: Colin Milner is a leading authority on the health and well-being of the older adult, Founder and CEO of the International Council on Active Ageing (ICAA) and a member of the Global Agenda Council on Ageing

Photo: Shoppers crowd the walkways on opening day of the Westfield Stratford City shopping centre in east London. REUTERS/Suzanne Plunkett

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