The number of people over 60 years of age will increase by 56 percent, from 900 million in 2015 to over 1.4 billion by 2030. The report highlights that FMCG companies will have to adapt to cater for this age group—addressing the specific health concerns of older consumers while building consumer trust, all without making older consumers feel bad about their age.
Countries with the highest proportion of consumers aged over 65 in 2015 were Japan (26.6 percent), Germany (21.5 percent), Italy (21.2 percent), and Greece (20.5 percent).
Declining fertility rates and lengthening lifespans are the two key drivers of the growing proportion of older people. By 2025, the proportion of older people in Japan is expected to rise to over 30 percent and in China to over 14 percent of the population which will take country’s older age group to over 60 million people.
With high levels of disposable income, this demographic will have a clear impact on FMCG brands particularly for companies in health, food, personal care, non-alcoholic and alcoholic drinks.
Over two-fifths (44 percent) of consumers aged 65 and over believe that technology has a positive impact on their social lives, quelling a general misconception that older consumers do not use modern technology.
Tom Vierhile, director, innovation insights, GlobalData, said: ‘‘As a group, older people value simplicity and tend to place greater emphasis on health and wellness than younger age groups. They also tend to be less experimental and more loyal, so brands with a reputation for quality stand to gain from this demographic shift.”
Older consumers tend to seek products that provide health and wellness benefits. Trends show that 59 percent would trust a product containing natural ingredients, 36 percent would buy established brands, and 30 percent will choose products offering healthier ‘good-for-you’ ingredients.
A misconception that older consumers spend their time quietly sitting has been shown to be untrue—58 percent of consumers over the age of 65 exercise at least once a week presenting an opportunity for nutritional and supplement brands.
“FMCG brands can simplify products by cutting ingredient lists, reducing the use of chemicals, and boosting the use of natural ingredients in both food and non-food products,” concluded Mr Vierhile.