The New Consumer Majority Is The Senior Market

Targeting older adults has been relegated to “niche” status.  Niche markets are assumed to be smaller and extremely well defined. The Senior consumer market, comprised of more than 23 million seniors and another 81 million baby boomers, is more than 100 million strong.  It is diverse, in terms of ethnicity and lifestage.

Spending in the age 50+ consumer market is estimated at $3.1 trillion across all industries, except health care, which is estimated at an additional $1.6 trillion. This is an estimated $4.7 trillion in spending for senior and boomer consumers. Traditionally, brands and marketing officers have overlooked this lucrative opportunity. Decision makers default to conventional wisdom that young adults experience more life changes and make more brand choices than their older counterparts. This is a complete disconnect from market realities.

The effect of Lifestage

People 50+ actually experience more lifestage changes than any other cohort. (See accompanying Lifestage infographic.) This includes: second careers, retirement, parenting children and teens, divorce, remarriage, widowhood, grandparenting, emptynesting, and caregiving. Lifestage changes are often abrupt, and create need for products and services that have not been part of a consumer’s consideration set previously.  Two consumers of the same age may be experiencing very different lifestages, creating complexity in effectively reaching and communicating.

As adults age they become more individuated and comfortable in their own skin. This is commonly expressed as, “I am more me as I get older.” For marketers this means messages must be more targeted and personalized to achieve communication goals.

More diverse

As the boomers move into the senior market, they are becoming more culturally and racially diverse than any previous older generation. The boomers are experiencing the first generation of fully acculturated Asian and Hispanic matures, raised by foreign-born parents. By 2025 the population will be: 20.5% Hispanic; 5.8% Asian; 12.6% Black; and 57.6% White. (See attached infographic.)

“It is unrealistic to develop products and messages for 100 million older people who are incredibly diverse,” said Patti Aspenleiter, President of Zillner, an agency providing research, strategic and marketing services focused on Senior consumers. “Zillner created a proprietary segmentation, Senior ID, to allow companies to prioritize the senior segments that fit their brands.  We illustrate how to effectively use segmentation in our new research series, All the Wiser – Senior Consumer Insights and Outlook. ”