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- The Ageing Population
- The wealth divide among older shoppers
- Meeting the specific needs of older shoppers
- Ethics
- Health Concerns
We assess how an ageing population will impact on purchasing behaviour
including issues such as health, ethics as well as product and brand loyalty
The Ageing Population
The population is ageing – a quarter (25%) of people in the UK will be aged over
60 in 2020, higher than the number of those aged under 20 (23%). By 2050 three
in ten people in the UK will be aged over 60 compared to 22% aged under 20.
(Source: Government Actuary’s Department, 2006).
An Ageing Population
Source: Government
Actuary Department / IGD Research, 2007
The proportion of over 80s is forecast to grow
the most from 4% in 2006 to 10% by 2046. The number of people aged over 100 is
forecast to rise from 10,000 in 2006 to more than a quarter of a million by
2050.
The wealth divide among older shoppers
Many of these older people lead highly active
lifestyles, benefiting from increased life expectancy, higher levels of
disposable income and improved levels of healthcare. Retirement is no longer a
brief period at the end of life, but one that can last for many years.
Retirement does not necessarily represent the
‘freedom’ that we might all hope it offers. There is considerable polarisation
of wealth and life satisfaction among this major sector of the population,
reflecting the difference between those on the basic state pension only and
those that have made additional financial savings. According to the Department
for Work and Pensions, older pensioners and female single pensioners were more
likely to be at the bottom of the income distribution in 2006. Pensioner couples
on average have over twice the level of occupational pensions and investments as
single pensioners, and over seven times the level of earnings.
Meeting the specific needs of older shoppers
Ageing Shopper
Characteristics
Source: IGD
Consumer Unit, 2007
Today’s older shoppers have specific
requirements that the food industry needs to respond to. IGD’s Shopper Trends in
Product and Store Choice 2007 showed
that they are most likely to be traditional in their outlook and are less likely
to get bored cooking the same thing (9% compared to 18% of under 65’s). They are
more likely to be brand loyal (43%) avoiding promotions, and are more concerned
with purchasing brands that they know (49% compared to 34% of under 65’s).
Ethics
They are also far more concerned with
purchasing local food (33% compared to 26% of under 65’s) and are most likely to
be willing to pay extra for both local and British food.
Health concerns
Today’s over 65’s have specific needs in terms
of leading a healthy lifestyle. They are more likely to eat low fat versions of
foods (48% compared to 35% of under 65’s) and foods with less sugar (34%
compared to 26%).
They are also more likely to require smaller
portion sizes (36% compared to 25% of those aged under 65). This is reflected in
the fact that as many as three in five (60%) women aged over 75 live on their
own while 30% of men aged over 75 live on their own.
Older consumers in the future will form a key
market for providers of many goods and services but making the most of this
opportunity will require a clear understanding of their particular needs and
aspirations.
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