Ageing Consumers as a Lucrative Market
If you’ve read our publications on Gen Z, you are aware that marketing to specific consumer segments has become a primary goal for a variety of brands.
A comprehensive recent report by Euromonitor International reviews the global ageing trends towards 2040, specifically the income and spending patterns of the steadily increasing consumer demographic aged 65+. Intrigued? Let’s dive in:
- In the next 20 years, the global population aged 65+ years is forecast to increase by 600 million, to reach 1.3 billion by 2040.
- USD21,811 is the predicted average gross income of the population aged 65+ in 2040, a rise of 38% over 2020 at constant 2019 prices.
- COVID-19 and the resulting recession will reduce the income of older people and their overall living standards (a decline by 6% year-on-year in real terms in 2020 predicted).
- People aged 65+ still enjoy relatively high average gross incomes — a result of the lifelong accumulation of wealth and assets, as well as multiple income sources (pensions, interest from saving accounts and investment incomes).
- Considerable discretionary spending power – older people are often homeowners without mortgages, therefore not incurring a great outlay on housing, while sometimes enjoying lower income tax rates and subsidies (e.g. cheaper or free public transport).
Although the fortunes of the over-65s are highly uneven from country to country, and also within a country, this consumer segment is becoming increasingly important. Business strategies catering to their diverse needs and offering easy-to-use, low-effort experiences are likely to achieve long-term success. Stay tuned and follow our Marketing Bites for further valuable insights.