Large families with children will become a niche market? Household spending on packaged goods will begin to fall in 2020? Marketers willing to reach out to the Baby Boomers can tap into a large marketplace (Der). Just a few of the predictions pointed out in this blog by Neilsen Research.
According to the article, growth will be hard to come by both now and in the coming decades—successful marketers in 2010 will factor the U.S. shifting demographic profile into the marketing mix.
Some of the key trends:
1) Growth is Found in Less-Developed World
The less-developed regions will grow 31 times faster than the more developed ones. Some of the older countries in Europe as well as Japan will lose population. Marketers in the developed world will be locked into share wars while those able to compete in the less-developed world could see substantial growth.
2) The Share of Households With Children Decline
By the middle 2020s, the share of U.S. households with children under 18 will fall below 30%. In Western Europe and Japan, the share will be much lower, making large families with children a niche market. Immigration and Ethnic Familes Fuel Growth Less than half of families with children will be native born non-Hispanic White. Multi-cultural marketing will be essential when selling to families with children.
3) Older Consumers Have New Needs
The Baby Boom will seek to rewrite what it means to be old exactly as they have rewritten what it means to be children and adults. Marketers willing to reach out to the Baby Boom as they age can tap into a large marketplace. Those who are not willing to market to persons over the age of 65 will miss out on the first generation to grow up in a full blown consumer marketplace. Baby Boomers will not spend on the same categories as their parents did. For example, consumption of alcoholic beverages is much higher for Baby Boomers than for the current cohort of 65+ persons. Marketers who assume that the Baby Boom will start to behave like current older Americans, just because they reach the age of 65, do so at their peril.
4) CPG Spending Declines After 2020
Nielsen projections show per household spending on packaged goods will begin to fall. The current recession is already impacting spending in the short-term. Growth will be very hard to come by both now and in the coming decades.