We highlight how the over 50s are leading the charge for more ethical and environmental products.
 

Why the over 50s are important

• They account for more than half (53%) of UK grocery spend (source: TNS)
• They represent about 80% of the UK's disposable wealth (source: Abbey Bank)
• Their population is forecast to grow from 21m to more than 32m by 2051 (source: Government Actuary Department)

Older shoppers staying green in an economic downturn

Far from turning their backs on their ethical and environmental beliefs in an economic downturn, older shoppers are leading the way and want more products that reflect these values, according to IGD’s forthcoming Golden Generation report.

Despite the credit crunch, older shoppers’ interest in ethical products has increased.
 

29% of shoppers aged 50-59 bought more Fairtrade products over the last six months (70% more likely than average) 29% bought more products promising high animal welfare standards (32% more likely than average) 28% bought more local food (27% more likely than average)

Ethics by choice

Shoppers aged 50 or over in our research were asked what changes they would like to see to the range of food and groceries at their main store. As many as half (48%) would like more ethical products.

Top of the wish list among the over 50s is having more local and regional products, mentioned by 35% of shoppers, particularly women, as well as those aged 50-69, and those from higher social groups.   

“They should incorporate more local products like they do in the rest of Europe. I mean Hertfordshire is full of producers but you never see them in local supermarkets.” Barnet, aged 50-65, BC1

Although nearly one in five (18%) shoppers aged 50 or over would like more Fairtrade products, there was limited demand for more organic products, referred to by 10%.

Our qualitative research found that very few respondents mentioned purchasing organic. Those who did refer to it had concerns about the overall price and value for money. The benefits offered by organic products were not sufficiently clear to encourage more purchasing.

“I don’t like organic. It is dearer.” Sainsbury’s, aged 75+, BC1
 

Tuned in to the environment

Concerns for the environment are also highly important to older shoppers. Our research found that nearly two thirds of older shoppers (63%) would like to see changes to packaging.

More than a third (35%) of shoppers aged 50 or over would like more products with reduced packaging and a quarter would like more products with recyclable, bio-degradeable, compostable or re-usable packaging.

While there were general concerns for the environment, many respondents also had their own interests at heart citing excessive packaging as making it more difficult for them to open products.

“Products are not just wrapped once they are wrapped two or three times. They are difficult to open.” Barnet, aged 50-65, BC1

This suggests that there is an opportunity to win over the increasingly influential older shopper market - meeting both their environmental and practical needs by introducing initiatives that involve reduced or more environmentally friendly packaging.
 

The haves and the have nots

Our research shows that the wealth divide among the over 50s is likely to have an impact on the growth rate of ethical and environmental products. While approaching three quarters (69%) of those over 50 working full time are in the highest social groups (ABC1), almost three in five (58%) retired single people are in the lowest social groups (C2DE).

During our qualitative research, those in higher social groups were generally enjoying their retirement and being able to spend money on products that met their needs.

However, it was a different story among those in lower social groups. For many of these shoppers the impact of the economic downturn had left them feeling financially insecure. This had an impact on their purchasing of ethical products.

“I would love to buy Fairtrade but I can not afford to.” Asda, aged 70-75, C2D

It will be important to respond to the polarisation of purchasing power among older shoppers - meeting both the aspirations of low income single pensioners and the high expectations of wealthy over 50s couples. This will require an understanding of your customer profile and how this changes over time.
 

More information:

The Golden Generation With an ageing population, it has never been more important to have an understanding of this growing and highly influential segment. How do they feel about the UK food and grocery industry, what are their expectations, and how can you target their needs? Find out in The Golden Generation, IGD’s time-saving one-stop guide to the older shopper.

This report will soon be available on MyReports, a brand new service from IGD that is the new home of our strategic insight reports. Visit www.igd.com/MyReports to find out more about this exciting new e-tool.

Michael Freedman has over 18 years agency and clientside experience in managing and conducting qualitative and quantitative research projects covering emerging trends affecting the food and grocery industry such as ethics and health. Michael has recently been involved in quantitative and qualitative research exploring shoppers’ attitudes to place of origin, local food and food miles and exploring how these issues are affecting shopping purchase decisions and Pan-European research identifying insights into evolving shopper attitudes and behaviours towards ethical consumerism.