Golden Years, Golden Opportunities
Across the world, as people live longer and birth rates decline, the global population is slowly but surely getting older.
In comparison to some of the disruptive events experienced in recent times – a pandemic, high inflation, political upheavals, and the explosion of generative AI – this slower, less dramatic change can attract less attention.
But by 2050, one out of every five people in the world is projected to be 60 or over. This ratio is projected to be one in three for Europe and North America. At that point, it will be impossible to ignore this older age group.
But are businesses prepared for the challenges and opportunities presented by an aging world?
In this Ipsos Views paper, we explore what an aging consumer base means for businesses, how to tap into the wealth held by this cohort, and who among older adults is spending – and on what.
In the UK, for example, over half of consumer spending comes from people over 50, even though they make up only a third of the British population.
The key to successfully targeting older consumers starts with a better understanding of how older adults differ on dimensions that impact marketing and innovation.
In this vein, the paper also shares a new segmentation of older consumers, based on a pilot of 1,500 consumers aged 60 and over from across four countries – the United States, the United Kingdom, Italy and Japan. The pilot uncovered four segments based on their financial situation, and their attitudes towards consumption, aging, food and beauty: Simple Contentment, Strivers, Strugglers, and Chill Indulgence.
Key takeaways:
- The aging world presents long-term opportunities for growth – if companies implement changes now.
- There is no such thing as a typical older person, with older consumers varying significantly in their sense of financial security and consumeristic attitudes.
- The Ipsos Brand Success Framework enables businesses to determine which products and services would be most successful among each segment, and how to tailor messaging accordingly.
