The Global Later Lifers Market: How the Over 60s are Coming into their Own

Strategy Briefing

About This Report

May 2014

With 12% of the world’s population now over 60, this growing demographic offers both opportunities and challenges for marketers. While many Later Lifers are disproportionately affected by economic downturn and struggling with healthcare and fuel costs, others are enjoying a comfortable, leisure filled retirement after benefiting from years of economic growth. This report examines this diverse group and their varying spending priorities.

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The Global Later Lifers Market: How the Over 60s are Coming into their Own

Later Lifers swelling into a critical demographic

The global population of over 60s – Later Lifers – stood at almost 880 million in 2013, representing 12% of the total global population. By 2020, this demographic will account for 14% of the total population, with the total number reaching 1.1 billion.

Global growth is forecast to be 26% between 2013 and 2020

Growth in the share of Later Lifers is rapid, driven by falling fertility and increases in life expectancy. The highest numbers of Later Lifers can be found in Asia Pacific, where in 2013 there were 486 million people over 60.

Much of this can be attributed to China, which has the largest Later Lifers population in the world, at 231 million in 2013. China is also the most rapidly growing ageing population, with the number of over 60s forecast to increase by over 32% between 2012 and 2020.

Growth in the Later Lifer demographic creates a number of challenges

As countries see the number of non-workers increase while the number of workers supporting them decreases. These challenges are particularly harsh in developing markets such as China and India, which still have a young and growing economy, and lack the resources and welfare systems with which to support these changes.

While China has the largest Later Lifer population, it is Japan that has the oldest population, with a massive 33% of the population aged over 60. Japan acts as an indicator and model of the impact of this demographic shift, and highlights the effects of various methods of governmental intervention. Japan has managed its difficult demographic lottery well, with its elderly people healthy and relatively financially comfortable, although younger generations are carrying a significant burden.

Western Europe also has a number of old populations

Italy ranks second and Germany third in this regard. While most developed markets are relatively old, the US remains quite young, due to high levels of immigration.

It is not surprising, given life expectancies, that the Later Lifers should be, in most markets, focused more on the younger end of this age groups, with the under 70s typically accounting for around 40-50% of the overall demographic. This age group tends to be healthy and active, while the incidence of physical and mental deterioration unsurprisingly increases among the older age groups. The younger over 60s – those under 68 – are also members of the baby boomer generation, who tend to be keen to embrace new products and experiences, such as travel.

What this report includes

  • Top-level strategic analysis of how major consumer trends will influence global markets
  • Consumer insight
  • Impact across all relevant consumer markets
  • Unique graphics and case studies
  • Key market snapshots
  • Accompanying presentation to synthesise main findings

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  • Forward-looking outlook
  • Briefings and presentation should provoke lively discussion at senior level
  • Take a step back from micro trends
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The Global Later Lifers Market: How the Over 60s are Coming into their Own

EXECUTIVE SUMMARY

Later Lifers swelling into a critical demographic
Chart 1 Ageing Population by Key Country 2013 and Growth 2013-2020
The well and the unwell: Polarities of life over 60
The rich and the poor: Global economic pressures hit Later Lifers hard
Table 1 Poverty Rates in Key Countries Among the Over 65s 2013
Who is the consumer? Identifying the wealthy, healthy and ready to spend
Chart 2 Where the Consumers Are: Later Lifers Measured by Income, Healthy Life Expectancy and Population 2013
What does the Later Lifer want? Health, family and leisure
Chart 3 Factors in a Happy Life 2013
Translating wishes into market drivers: Health food, online access and new experiences
Table 2 Global Sales of Health, Communication and Leisure Products and Services 2013/2018

INTRODUCTION

Later Lifers

DEMOGRAPHICS

The ageing population
Chart 4 Ageing Population by Key Country 2013 and Growth 2013-2020
Table 3 Ageing Population by Region 2013 and Growth 2013-2020
Table 4 Countries with the Highest Proportion of Over 60s 2013
Table 5 Countries with the Highest Number of Over 60s 2013
Table 6 Countries with the Fastest Growth In Over 60s 2013-2020
The young old vs the old old
Chart 5 Ageing Population by Age Group 2013
Life expectancy and wellness
Chart 6 Life Expectancy vs Healthy Life Expectancy by Country 2013
The well and the unwell: dependency on care ratios highest in the developed world
Table 7 % of Older Population Dependent on Care 2012
The well and the unwell: the rise of dementia
Summary 1 Ranking of Conditions That Lead To Dependency 2012

SPENDING POWER

Average incomes of Later Lifers
Chart 7 Average Gross Income of Later Lifers by Region 2008/13/20
Chart 8 Average Gross Income of Later Lifers by Key Country 2013/2020
Chart 9 Average Gross Income of Later Lifers at PPP by Key Country 2013
Later Lifer Poverty Rates
Table 8 Poverty Rates Among the Over 65s 2013
Changing face of pension provision
Pension reform...
...and the raising of retirement ages
Table 9 Effective Retirement Age vs Actual Retirement Age by Key Country 2012
Private savings and investments
How do Later Lifers feel about their financial position?
To work or not to work?
Table 10 Employment Rates of Older Workers by % of Population Aged 55-64 Years by Country 2000/2010
Table 11 Expected Years of Retirement for Men by Country 2007
Where are the consumers?
Chart 10 Where the Consumers Are: Later Lifers Measured by Income, Healthy Life Expectancy and Population 2013

CONSUMER BEHAVIOUR

Global Consumer Trends Survey 2013
Characteristics of Later Lifers
Summary 2 The Well, Wealthy Later Lifers
Summary 3 The Unwell, Cash Strapped Later Lifers
Changing approaches to spending?
Chart 11 In the Past 12 Months, Have You Changed Your Overall Spending 2013?
Chart 12 In the Past 12 Months, Have You Decreased Your Spending 2013?
Travel and technology buck the parsimony trend
Chart 13 Areas in Which Spending Has Increased and Will Increase Among Later Lifers 2013
Chart 14 Areas in Which Spending Has Decreased and Will Decrease Among Later Lifers 2013
Lifestyle preferences
Chart 15 Factors in a Happy Life 2013
Priority areas: health and wellbeing
Chart 16 Importance of Good Health To Happiness By Country Among Later Lifers 2013
Chart 17 Frequency of Attributes in Maintaining Health Among Later Lifers 2013
Chart 18 Frequency of Activities Among Those Later Lifers Who Participate in Physical Exercise 2013
Priority areas: Family, community and communication
Chart 19 Importance of Strong and Supportive Family Relationships, Friends and Children to Happiness by Country Among Later Lifers 2013
Chart 20 Importance of Strong and Supportive Family Relationships, Friends and Children to Happiness by Country Among Later Lifers 2013
Keeping in touch
Chart 21 Use of Mobile Phones by Selected Activity Among Later Lifers 2013
Chart 22 Use of Mobile Phones for Communication by Type and by Country Among Later Lifers 2013
Living alone
Grandparenting
Table 12 Grandparenting in Europe 2013
Priority areas: Rewarding leisure time
Chart 23 Future Spending on Travel for the Next 12 Months by Country Among Later Lifers 2013
Chart 24 Future Spending on Technology for the Next 12 Months by Country Among Later Lifers 2013

MARKET IMPACT

Key Opportunity Markets
Summary 4 Later Lifers’ Behaviours and Their Opportunity Markets 2013
Healthy Living: Medicating the unwell
OTC healthcare: Push towards self-medication
Analgesics: Mature category but key to Later Lifers
Digestive remedies: The rise of price competitive and effective antacids among Later Lifers
Digestive remedies: GERD among the elderly drives up sales of PPIs
Dentures and oral care
Incontinence
Eyewear
Chart 25 Global Sales of Healthcare Products 2013/2018
Healthy living: Preventative care
From treatment to prevention
Vitamins and dietary supplements
Herbal/traditional products
Fortified/functional foods/drinks
Chart 26 Global Sales of Preventative Healthcare Products 2013/2018
Health and wellness foods by function
Digestive health
Bone and joint health
Cardiovascular health
Brain and vision health
Chart 27 Global Sales of Health and Wellness Products by Function 2012/2017
Communications
Chart 28 Global Sales of Internet Connected Products 2012/2017
Leisure
Consumer Electronics
Gardening
Pet care
Travel
Chart 29 Global Sales of Leisure Products and Services 2012/2017

COUNTRY SNAPSHOTS

Brazil
Population Trends
Young population, but ageing rapidly
Chart 30 Brazil: Total Population Over 60 2008/2013/2020
Chart 31 Brazil: % of Population by Over 60s Age Group 2008/2013/2020
Rising life expectancy
Chart 32 Brazil: Life Expectancy at Birth 2008/2013/2020
Continuing to work to fund old age
Chart 33 Average Gross Income of Brazilian Later Lifers Compared to Key Markets 2013
Spending plans and priority areas
Chart 34 Brazil: Future Spending Plans for the Next 12 Months Among Later Lifers 2013
Happiness factors/priorities: Work, family, status
Chart 35 Brazil: Factors in a Happy Life Among Later Lifers 2013
Health: In pursuit of an active life
Healthcare is a key cost
Physical exercise scores highly; alternative healthcare also well received
Chart 36 Brazil: Frequency of Attributes in Maintaining Health Among Later Lifers 2013
Communications: Family, friends and community
Family living still important
The rise of grandparenting
Increasing online presence
Keeping in touch
Chart 37 Brazil: Use of Mobile Phones by Selected Activity Among Later Lifers 2013
Leisure time
Chart 38 Brazil: Future Spending for the Next 12 Months Among Later Lifers 2013
China
Population Trends
Fast growth in the largest over 60s population in the world
Chart 39 China: Total Population Over 60 2008/2013/2020
Chart 40 China: % of Population by Over 60s Age Group 2008/2013/2020
Life expectancy
Chart 41 China: Life Expectancy at Birth 2007/2012/2020
Over 60s profile
Polarisation of wealth
Chart 42 Average Gross Income of Chinese Later Lifers Compared to Key Markets 2013
Retirement age is early compared to the developed world
Female Later Lifers face more challenges than men
Spending patterns remain conservative
Spending plans and priority areas
Chart 43 China: Future Spending Plans for the Next 12 Months Among Later Lifers 2013
Happiness factors/priorities
Chart 44 China: Factors in a Happy Life Among Later Lifers 2013
Health: In pursuit of an active life
Traditional medicine showing increased spend
Chart 45 China: Frequency of Attributes in Maintaining Health Among Later Lifers 2013
Communications: Family, friends and children
Later Lifers still live with extended families
Keeping in touch
Chart 46 China: Use of Mobile Phones by Selected Activity Among Later Lifers 2013
Leisure time
Chart 47 China: Future Spending for the Next 12 Months Among Later Lifers 2013
Online shopping attracts the Later Lifers
France
Population Trends
Over 60s now the largest age group
Chart 48 France: Total Population Over 60 2008/2013/2020
Chart 49 France: % of Population by Over 60s Age Group 2008/2013/2020
Life expectancy
Chart 50 France: Life Expectancy at Birth 2007/2012/2020
Over 60s profile
Chart 51 Average Gross Income of French Later Lifers Compared to Key Markets 2013
French spend later life in retirement
Spending plans and priority areas
Chart 52 France: Future Spending Plans for the Next 12 Months Among Later Lifers 2013
Happiness factors/priorities
Chart 53 France: Factors in a Happy Life Among Later Lifers 2013
Health: In pursuit of an active life
Health and appearance still ranks high
Chart 54 France: Frequency of Attributes in Maintaining Health Among Later Lifers 2013
Communications: Family, friends and community
Grandparenting still low compared to Southern Europe
Retiring overseas
Keeping in touch
Chart 55 France: Use of Mobile Phones by Selected Activity Among Later Lifers 2013
Leisure time
Chart 56 France: Future Spending for the Next 12 Months Among Later Lifers 2013
Germany
Population Trends
The third oldest population in the world
Chart 57 Germany: Total Population Over 60 2008/2013/2020
Chart 58 Germany: % of Population by Over 60s Age Group 2008/2013/2020
Life expectancy
Chart 59 Germany: Life Expectancy at Birth 2008/2013/2020
Over 60s profile
Risk of poverty on the increase
Retirement age raised
Chart 60 Average Gross Income of German Later Lifers Compared to Key Markets 2013
Despite this, they remain a key consumer group
Spending plans and priority areas
Chart 61 Germany: Future Spending Plans for the Next 12 Months Among Later Lifers 2013
Happiness factors/priorities
Chart 62 Germany: Factors in a Happy Life Among Later Lifers 2013
Health: In pursuit of an active life
Chart 63 Germany: Frequency of Attributes in Maintaining Health Among Later Lifers 2013
Communications: Family, friends and community
Grandparenting
Pets as replacement children
Online usage growing
Keeping in touch
Chart 64 Germany: Use of Mobile Phones by Selected Activity Among Later Lifers 2013
Leisure time
Chart 65 Germany: Future Spending for the Next 12 Months Among Later Lifers 2013
India
Population Trends
A young population: but ageing quickly
Chart 66 India: Total Population Over 60 2008/2013/2020
Chart 67 India: % of Population by Over 60s Age Group 2008/2013/2020
Life expectancy
Chart 68 India: Life Expectancy at Birth 2008/2013/2020
Over 60s profile
Changing society leaves many Later Lifers with financial gap
Chart 69 Average Gross Income of Indian Later Lifers Compared to Key Markets 2013
Spending plans and priority areas
Chart 70 India: Future Spending Plans for the Next 12 Months Among Later Lifers 2013
Happiness factors/priorities
Chart 71 India: Factors in a Happy Life Among Later Lifers 2013
Health: In pursuit of an active life
Chart 72 India: Frequency of Attributes in Maintaining Health Among Later Lifers 2013
Communications: Family, friends and community
Changing family structures: Later Lifers seeking new partners
Keeping in touch
Chart 73 India: Use of Mobile Phones by Selected Activity Among Later Lifers 2013
Leisure time
Chart 74 India: Future Spending for the Next 12 Months Among Later Lifers 2013
Japan
Population Trends
The world’s oldest population
Chart 75 Japan: Total Population Over 60 2008/2013/2020
Chart 76 Japan: % of Population by Over 60s Age Group 2008/2013/2020
Life expectancy
Chart 77 Japan: Life Expectancy at Birth 2008/2013/2020
Over 60s profile
Pension pressure leads to high retirement age
Strong social pension network under pressure
A wealthy cohort
Chart 78 Average Gross Income of Japanese Later Lifers Compared to Key Markets 2013
Spending plans and priority areas
Chart 79 Japan: Future Spending Plans for the Next 12 Months Among Later Lifers 2013
Happiness factors/priorities
Chart 80 Japan: Factors in a Happy Life Among Later Lifers 2013
Health: In pursuit of an active life
Healthcare state subsidised
Chart 81 Japan: Frequency of Attributes in Maintaining Health Among Later Lifers 2013
Communications: Family, friends and community
Later Lifers prefer to stay in their own home for as long as possible
Robot company?
Keeping in touch
Chart 82 Japan: Use of Mobile Phones by Selected Activity Among Later Lifers 2013
Leisure time
Chart 83 Japan: Future Spending for the Next 12 Months Among Later Lifers 2013
Russia
Population Trends
Small over 60s population, but increasing fast
Chart 84 Russia: Total Population Over 60 2008/2013/2020
Chart 85 Russia: % of Population by Over 60s Age Group 2008/2013/2020
Life expectancy
Chart 86 Russia: Life Expectancy at Birth 2007/2012/2020
Over 60s profile
Low pension age, but low retirement income
Workers continue to work past retirement age
Low consumer confidence in retirement income
Chart 87 Average Gross Income of Russian Later Lifers Compared to Key Markets 2013
Spending plans and priority areas
Chart 88 Russia: Future Spending Plans for the Next 12 Months Among Later Lifers 2013
Happiness factors/priorities
Chart 89 Russia: Factors in a Happy Life Among Later Lifers 2013
Health: In pursuit of an active life
Chart 90 Russia: Frequency of Attributes in Maintaining Health Among Later Lifers 2013
Communications: Family, friends and community
Chart 91 Russia: Use of Mobile Phones by Selected Activity Among Later Lifers 2013
Leisure time
Chart 92 Russia: Future Spending for the Next 12 Months Among Later Lifers 2013
UK
Population Trends
The UK’s over 60s population to grow roughly in line with regional trends
Growth strongest in the older age groups
Chart 93 UK: Total Population Over 60 2008/2013/2020
Chart 94 UK: % of Population by Over 60s Age Group 2008/2013/2020
Life expectancy
Chart 95 UK: Life Expectancy at Birth 2007/2012/2020
Over 60s profile
Rich/poor divide widens
Chart 96 Average Gross Income of UK Later Lifers Compared to Key Markets 2013
Continuing to work
Spending plans and priority areas
Chart 97 UK: Future Spending Plans for the Next 12 Months Among Later Lifers 2013
Planning ahead – looking at life post retirement
Happiness factors/priorities
Chart 98 UK: Factors in a Happy Life Among Later Lifers 2013
Later Lifers don’t feel old
Health: In pursuit of an active life
Chart 99 UK: Frequency of Attributes in Maintaining Health Among Later Lifers 2013
Communications: Family, friends and community
Still supporting dependents: Parenting and grandparenting
Independent living vs specialised housing
Getting online
Keeping in touch
Chart 100 UK: Use of Mobile Phones by Selected Activity Among Later Lifers 2013
Leisure time
Travel is a key activity
Chart 101 UK: Future Spending for the Next 12 Months Among Later Lifers 2013
US
Population Trends
US population relatively young for the developed world
Chart 102 US: Total Population Over 60 2008/2013/2020
Chart 103 US: % of Population by Over 60s Age Group 2008/2013/2020
Life expectancy
Chart 104 US: Life Expectancy at Birth 2008/2013/2020
Over 60s profile
Funding retirement becomes tougher
Chart 105 Average Gross Income of US Later Lifers Compared to Key Markets 2013
Many Later Lifers are choosing to work beyond retirement age
Spending drops during retirement, while healthcare costs rocket
Spending plans and priority areas
Chart 106 US: Future Spending Plans for the Next 12 Months Among Later Lifers 2013
Happiness factors/priorities
Chart 107 US: Factors in a Happy Life Among Later Lifers 2013
Health: In pursuit of an active life
Chart 108 US: Frequency of Attributes in Maintaining Health Among Later Lifers 2013
Communications: Family, friends and community
Later Lifers increasingly opt to live independently
Keeping in touch
Chart 109 US: Use of Mobile Phones by Selected Activity Among Later Lifers 2013
Leisure time: Eating out takes priority
Chart 110 US: Future Spending for the Next 12 Months Among Later Lifers 2013
Extended leisure time
Table 13 Time Use Among US Later Lifers 2012