Ageing population offers opportunities for FMCG marketers

Millennial generations tend to be the audience that most companies advertise their products towards. However, with more advanced modern medicine and a population focusing increasingly on health and nutrition, older generations are consistently living longer. This demographic shift means more companies need to take into account the needs of those above 65, especially fast-moving consumer goods (FMCG) marketers.

Globally, there has been a general decline in fertility rates and an increase in lifespans. A report by GlobalData titled ‘TrendSights Analysis: Aging Populations — How brands can accommodate the growing proportion of older consumers’ reinforced this, emphasising that the number of people aged over 60 will reach over 1.4 billion by 2030, a 56% increase on the 900 million in 2015. In 2015, those with the highest proportion of consumers aged over 65 included Japan (26.6%), Germany (21.5%), Italy (21.2%) and Greece (20.5%).

The report examined the preferences of these older generations and how FMCG brands can profit from catering to their needs. With high levels of disposable income and often the least amount of financial pressures, this demographic could have the most impact on FMCG such as health, food, and non-alcoholic and alcoholic drinks. Results suggested that trust, transparency and quality are the biggest concerns for this age group.

GlobalData found that 62% of consumers aged over 55 said their choices in food are driven by its health and wellness benefits. As a result, 59% would trust a product containing natural ingredients and 30% are inclined to choose products offering healthier ingredients. When buying food, just over a third of this demographic rely on well-known, trusted brands, while the majority (87%) like to be able to view the on-pack information that displays the origins of the product.

“The proportion of older people is rising in nearly every country. As a group, older people value simplicity and tend to place greater emphasis on health and wellness than younger age groups,” said Tom Vierhile, innovation insights director at GlobalData. “They also tend to be less experimental and more loyal, so brands with a reputation for quality stand to gain from this demographic shift. Regardless of market position, all brands need to reassess how well they know older consumers and how prepared they are to cater to them with appealing new product propositions.”

Food is not the only driver for health for those over 65 — they also value regular exercise to remain fit and healthy. The report suggested that 58% of consumers over the age of 65 exercise at least once a week, indicating they are an active demographic that sports clothing and supplement brands could benefit from.

The report concluded that the proportion of older people is rising rapidly, and Vierhile said FMCG companies could utilise this shift to their advantage by building trustworthy brands and providing transparent information about their products.

“FMCG brands can employ a number of strategies to cater to older consumers. This age group tends to seek products that are trustworthy, reliable and risk-free. Along those lines, 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.”