Companies to profit from ageing populations

Date published: 13 Feb 2007

Consumer industries are gearing up to profit from the huge rise in the number of over-65s, the swing generation, who represent a future goldmine according to a new report “The Swing Generation: Marketing to the Over 65s” from Euromonitor International.

New generation of older consumers who enjoy life and spend more

The swing generation, so called for the popularity of swing music at the time of their birth and childhood, includes people aged 65 and above. From 2000 to 2005 the percentage of the total world population over the age of 65 grew from 7.1% to 7.5% according to Euromonitor International. Consumers of this generation, described as the 'yuppie elderly', tend to be in good health, with high disposable income; as a result they should be a target audience for all consumer goods players.

Gina Westbrook, Research Director for Euromonitor International explains, “Many over 65s are determined to enjoy retirement, doing and buying all the things they feel were denied to them earlier in their lives. This presents significant opportunities for all consumer industries, but particularly for marketers of luxury goods and services”.

Health foods companies benefit from ageing population

The rising generation of over-65s is already leading to strong growth for a number of consumer markets across the globe, particularly those with a focus on improving health. Functional food products, for example, are very popular with the elderly, due to their fortification with ingredients that may prevent many of the ailments associated with old age, and as such, the market for these products grew by an impressive 96% between 2001 and 2006, according to Euromonitor's research. Probiotics in particular are ideally suited to the swing generation as they contain active bacteria to aid digestion and boost the immune system.

Other industries wake up to elderly potential

More companies are now cottoning on to the growing opportunity that over-65s provide and are altering their marketing strategies accordingly. They are highlighting the health benefits of their products to appeal to the older consumer, who is now interested in maintaining a healthy-lifestyle. Kellogg's, for example, is targeting the older consumer through the re-launch of its Smart Start line, which now comes in 3 varieties, each with specific health claims, 'antioxidant', 'soy protein' and 'healthy heart'.

The cosmetics industry is also introducing a flurry of products aimed at the older woman. According to Euromonitor International's latest research, nourishers/anti-agers was one of the fastest growing sub-sectors within the cosmetics market between 2001 and 2006, growing by 99% to reach sales of US$12.7 billion. L'Oreal, for example, launched its Pro-Calcium Age Re-Perfect line in 2006, advertised by 68 year-old actress Jane Fonda. More skin care companies are set to follow-suit and develop calcium-based skincare products for older skin. L'Oreal itself is also expected to extend its range of products for the over 60s into colour cosmetics and hair care.

Companies will need to adapt for the future boom

The ageing population is set to continue to increase, particularly when baby boomers start to reach their 65th birthdays' in a few years time. All consumer industries will have to adapt in order to profit from this growing consumer segment, who will increasingly be living more independently and have higher levels of discretionary income to spend. Euromonitor's report, “The Swing Generation: Marketing to the Over 65s” highlights that adaptations, such as simple packaging, larger keypads and stronger flavours to suit older palates, will improve business' performance over the coming years.

For press related enquires please contact Press & PR Executive Nicola Welham at nicola.welham@euromonitor.com or call +44 (0)20 7251 8024 ext.3510

The Swing Generation:Marketing to the Over 65s