Report Finds ‘Golden Opportunity’ With Boomers and Seniors

CPG spending among seniors demographic will surpass $230 billion by 2020, according to IRI.

June 18, 2014

CHICAGO – Accounting for more than 50% of consumer packaged goods (CPG) spending, the baby boomer/senior market spent more than $200 billion across shopping channels in the last year alone. And, with the number of Americans age 65 and older set to double during the next 25 years, this spending power will continue to grow.

According to the latest IRI Times & Trends report, “Aging America: Carving Out Growth in Mature Markets,” by 2020, annual CPG spending by boomers and seniors will surpass $230 billion.

“Healthcare-related spending represents a significant share of overall CPG spending for mature shoppers, so it is crucial for CPG marketers to focus on proactive wellness and disease state management to activate these shoppers,” said Susan Viamari, editor of thought leadership for IRI. “With this type of spending on the table, even a fraction of one share point can easily translate into hundreds of millions of dollars.”

It’s no surprise that health and wellness are important to boomers and seniors. However, this doesn’t mean that they are only purchasing. Like all consumers, they are investing in healthier living today to maximize long-term healthcare expenditures. As a result, “healthier for you” has emerged as a significant opportunity across CPG aisles.

For instance, IRI’s latest New Product Pacesetters study found that the top-selling food launch for 2013 was Dannon Light & Fit Greek yogurt. And, among non-foods, L’Oreal’s Advanced Haircare, a line of hair care products that enhances hair health, took the top spot.

Going forward, retailers and manufacturers must continue to look across the store for opportunities to support and advance consumers’ wellness-related effort, across all ages. Aging consumers are investing disproportionately in a wide range of preventive care and simple healthcare solutions. Sales of products, such as gastrointestinal liquid, home healthcare/kits, vitamins and internal analgesics, are showing exceptional growth among the mature marketplace.

“It’s important to remember that mature consumers want to achieve and maintain wellness, but they are not interested in the latest fad,” said Viamari. Older consumers still rely heavily on traditional media, such as circulars, coupons and signs or displays in stores when making brand decisions. To reach mature consumers effectively, marketers must leverage traditional media and supplement with new media programs that are tailored to target consumers’ place on the technology adoption curve.

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