The Market for Boomers Turning 50

Published: Aug 1, 1998 - 200 Pages

Table of Contents:

I Executive Summary

Demographics

  • Pig in Python Reaches Middle Age
  • Implications for Marketers
  • How Baby Boomers Will Change "Aging"
  • Nearly 10 Million Boomers Already 50-Plus
  • Table 1-1: Growth of Mature Baby Boom Market, 1996-2015 (number)
  • Boomers Will Swell Ranks of Mature
  • Majority of Boomers Married
  • Boomers Have Fewer Children
  • Boomers Most Educated Generation in History
  • 80% of Mature Boomers Are Employed
  • 45- to 54-Year-Olds Have Highest Incomes

The Market

  • Market Estimated at $930 Billion
  • Boomers Dominate Market for Most Consumer Goods and Services
  • Figure 1-1: Mature Boomer Expenditures for Consumer Products and Services, 1997 (dollars): 9 Categories
  • Mature Boomers Still Building Net Worth

Mature Boomers as Consumers

  • Households 45-54 Have Highest Annual Expenditures
  • Mature Boomers Spend More in Virtually All Categories
  • Boomers Particularly Important Consumers of Products/Services

Mature Boomer Use of Media

  • Boomers Are Major Media Consumers
  • Older Adults Watch More Television Than 18- to 49-Year-Olds
  • Most Programming Ignores Older Viewers
  • Mature Americans Consume All Forms of Print
  • Mature Boomers Major Part of Readership of Most Mainstream
  • Publications
  • Growing List of Publications Targeted to Mature Audiences
  • Catalogs Only Direct Mail Boomers Read
  • Use of Electronic Media Growing

Marketing to Mature Boomers

  • Marketers Know Boomers, But May Need to Revisit Them
  • What Worked with Previous Mature Audiences Won't Work with Boomers
  • No "One-Size-Fits-All" Mature Category
  • Boomers Not Planning to Slow Down
  • "This Is Not Your Father's Oldsmobile" Captures Right Attitude
  • Product Must Be Right, Too
  • New Experiences Motivate
  • Boomers Also Seek Balance, Simplicity
  • Mature Adults Starved for Contemporary Role Models

Scope and Methodology

  • Report Examines Aging Baby Boomers
  • Methodology

II Demographics

Introduction

  • Pig in Python Reaches Middle Age
  • Implications for Marketers
  • How Baby Boomers Will Change "Aging"
  • Figure 2-1: Growth of Mature Baby Boom Market: Total Number of
  • Boomers Age 50+, 1996-2015 (number)

Population

  • Nearly 10 Million Boomers Already 50-Plus
  • Table 2-1: Growth of Mature Baby Boom Market, 1996-2015 (number)
  • Boomers Driving Median Age of Population
  • Two Boomer Cohorts
  • How Cohorts Differ from Generations
  • Boomers Will Swell Ranks of Mature
  • Through 2050, Mature Population Will Be Fastest-Growing
  • Greater Range of People Now Considered Mature
  • Americans Living Longer, Staying Healthier Longer
  • Females Increasingly Outnumber Males with Age
  • Table 2-2: Ratio of Mature Boomer Males to Females, 1998 vs 2015 (number and percent)
  • Whites Dominate Ranks of Boomers
  • Table 2-3: Share of Mature Boomers by Racial Origin, 1998 (number and percent): Whites, African Americans, Hispanics, Asian/Pacific Islanders, Native Americans
  • Figure 2-2: Share of Mature Boomers by Racial Origin, 1998 (percent): Whites, African Americans, Hispanics, Asian/Pacific Islanders, Native Americans
  • Geographic Distribution Patterns

Family Status

  • Majority of Boomers Married
  • Many More Than Once
  • Mature Boomers See Benefits of Marriage, Fidelity
  • Boomers Have Fewer Children
  • But More Stepchildren
  • "Sandwich Generation" New Label Created for Boomers
  • Grandparenting Important Role for Mature Americans

Education

  • Boomers Most Educated Generation in History
  • Education Affects Boomer Attitudes More Than Earnings

Employment

  • 80% of Mature Boomers Are Employed
  • First Generation of Fully-Employed Women
  • Many Boomers Will Continue Working
  • Life Cycle Is Changing

Finances

  • 45- to 54-Year-Olds Have Highest Incomes
  • And Also the Highest Expenses
  • The Equitable Nest Egg Study
  • Education and Retirement Two Greatest Financial Concerns
  • Saving Enough for Retirement
  • $300,000 Saved by Boomers Polled
  • Company-Based Retirement Plays Major Role in Retirement Strategy
  • Yet Fewer Employers Offer Defined-Benefit Programs
  • Today's Retirees Rely on Employer-Based Programs, Social Security
  • Boomers Plan to Work Beyond 65
  • Financial Concerns Increase with Age
  • Will Boomers Be Able to Afford Retirement?
  • Will Boomers Overburden the Young?
  • Redemption Possibilities
  • Boomers Likely to Inherit Wealth

Health Issues

  • Physical Changes Accompany Aging
  • The Eyes: One of the First Things to Weaken
  • Hearing Acuity Also Diminishes with Age
  • Oral Maintenance Becomes an Increasing Concern
  • Changes to the Skin
  • Menopause
  • Reduction of Sexual Functioning
  • Baldness or Thinning Hair
  • Heart Disease
  • Prostate Cancer
  • Diminished Strength and Flexibility of Joints
  • Recent Trends Promise Better Health for Tomorrow's Elderly

Psychographics

  • Individuation Increases with Age
  • Five Key Values Underlie Mature Behavior
  • Individualism Makes Mature Market Diverse
  • Boomers' Attitudes, Tastes, and Preferences Established in 1950s and 1960s
  • Factors That Influenced the Boomer Cohort
  • Growing Up in the Shadow of the Bomb
  • Birth Control and an End to "Reproductive Tyranny"
  • Turning On and Dropping Out
  • Influences of the 1970s
  • Interest in the Outdoors
  • Interest in Healthy Food and Alternative Healthcare
  • Updated Study of Boomer Dreams
  • Boomers Optimistic But Stressed
  • Boomers Believe World Can Be Changed
  • Peace Corps, An End to Hunger, Ben & Jerry's Other Examples of
  • Boomer Optimism
  • Health a Key Factor in Autonomy, Self-Esteem
  • Appearance Important, Particularly for Women
  • Aging More Psychologically Stressful for Men?
  • Americans Picture Themselves Younger Than Their Chronological Age
  • Growing Numbers See Maturity and Retirement As Time of Fulfillment

III The Market

  • Figure 3-1: Mature Baby Boom Market, 1996-2003 (dollars)

Market Size and Growth

  • Market Estimated at $930 Billion
  • Methodology
  • Table 3-1: Estimated Size of Mature Baby Boom Market, 1996-1998 (dollars)
  • Boomers Dominate Market for Most Consumer Goods and Services
  • Table 3-2: Mature Boomer Expenditures for Consumer Products and Services, 1995 vs 1997 (dollars): 9 Categories
  • Americans 45-54 Have Highest Income
  • Mature Boomers Still Building Net Worth
  • Mature Boomers and Their Elders Own the Most Assets
  • Table 3-3: Percent Owning and Median Value of Selected Assets by Age of Householder, 1993 (percent): Motor Vehicles, Homes, Interest-Bearing Accounts, IRA/KEOGH, Stocks/Mutual Fund Shares
  • Home Is Most Important Asset
  • Table 3-4: Distribution of Net Worth by Age of Householder and Asset
  • Type, 1993 (percent): 13 Asset Types

Factors Affecting Market Growth

  • Boomers Turning 50 at Rate of One Every Eight Seconds
  • Boomers' Spending Ability Proven
  • Congress Likely to Amend Social Security and Medicare
  • Figure 3-2: Projected Growth of Mature Boomer Households, 1996- 2003 (number)

Projected Market Growth

  • Market to Grow 16% in Next Five Years
  • Table 3-5: Projected Growth of Mature Baby Boom Market, 1998-2003 (dollars)

IV Mature Boomers As Consumers

Spending on Consumer Products and Services

  • Notes on Statistics
  • Households 45-54 Have Highest Annual Expenditures
  • Table 4-1: Average Annual Household Expenditures: Age 45-54 vs
  • Total US, 1995 (dollars and percent): 17 Categories
  • Mature Boomers Spend More in Virtually All Categories
  • Boomers Particularly Important Consumers of Products/Services

Financial Services

  • Boomers Pay Most into Pensions, Retirement Plans
  • Table 4-2: Mature Boomer Spending on Financial Services, 1995 vs 1997 (dollars): 3 Product Types
  • Investments Supplement Income of Many
  • Boomers Rely Heavily on Plastic
  • New Products Created for Boomers
  • Boomers Active in Electronic Banking

Food and Beverages

  • Boomers Spend More on Food
  • Table 4-3: Mature Boomer Spending on Food Eaten at Home, 1995 (dollars): 5 Expenditure Categories
  • Boomers Health-Conscious, But Eat What They Like
  • Table 4-4: Mature Boomer Spending on "Indulgent" Foods, 1995 vs 1997 (dollars): 13 Categories
  • Boomers Boost Success of SnackWells, Fruitopia, Other "Better for You" Products
  • But Taste Most Important Criterion
  • Boomers Drive Growth of Vitamins, Food Supplements
  • Food Marketers Mobilize for Growth of Nutraceutical Market
  • Empty-Nesters Enjoy Eating Out
  • Survey Shows Dining and Entertainment a Key "Empty-Nest" Pastime
  • Boomers Have Eclectic Dining Tastes

Automobiles

  • Mature Boomers Spend More on New Vehicles
  • Table 4-5: Mature Boomer Spending on Vehicle Purchases, 1995 vs 1997 (dollars): 6 Categories
  • JD Power Research Notes Generational Differences in Car-Buying

Entertainment and Recreation

  • Boomers Work Hard, Play Hard
  • Table 4-6: Mature Boomer Spending on Entertainment, 1995 vs 1997 (dollars): 4 Categories
  • Boomers Attend More Cultural Events
  • Sports-Minded Boomers Pay to Play, Watch
  • Boomers Continue Lifelong Love of Television
  • The Beat Goes On
  • Outdoor Recreational Equipment
  • Boomers Expected to Change Fitness Industry
  • Mature Boomers Spend More on Travel
  • Table 4-7: Mature Boomer Spending on Travel-Related Expenditures, 1995 vs 1997 (dollars): 3 Categories
  • Boomer Boon to Travel Industry Expected
  • Mature Travelers Spend More, Stay Longer
  • Adventure Travel a Hit with Mature Travelers
  • Boomers May Spark Revival in Group Travel
  • Cruises Also Popular

Apparel

  • Mature Boomers an Underappreciated Market
  • Table 4-8: Mature Boomer Spending on Apparel, 1995 vs 1997 (dollars): 5 Categories
  • Boomers Spend More in Every Clothing Category But Baby

Healthcare

  • Boomers Spend More on Healthcare
  • Table 4-9: Mature Boomer Spending on Healthcare, 1995 vs 1997 (dollars): 4 Categories
  • Boomers Expected to Remain Active Longer
  • Boomers Bring Consumerism to Healthcare
  • Treating Older Patients Broadens Medical Paradigm
  • Boomers Forcing Changes to HMOs
  • Mature Market Major HMO Target
  • Loyalty to Physician One Fly in Ointment
  • Boomers Likely to Press for "Alternative" Medicine Coverage
  • Boomers Also Boost Demand for Plastic Surgery and Joint Replacements
  • Boomers Boost Demand for Reading Glasses

Household Furnishings and Equipment

  • Mature Boomers Spend More on Household Furnishings
  • Boomers Own More Computers
  • Table 4-10: Mature Boomer Spending on Household Furnishings and Equipment, 1995 vs 1997 (dollars): 6 Categories

Personal Care

  • Boomers Spend More Than Other Age Groups on Personal Care Products and Services
  • Table 4-11: Mature Boomer Spending on Personal Care Products and Services, 1995 vs 1997 (dollars): 2 Categories
  • Boomers Seek Anti-Aging Skincare Products
  • Boomers Also Concerned About Oral Hygiene

Shopping Patterns

  • Boomers Not Crazy About Shopping
  • Particularly About Shopping in Malls
  • Boomers Shop When Younger Consumers Do
  • Boomers Happy to Let Fingers Do Walking
  • Boomers Willing to Try New Products
  • Boomers Not Planning to Slow Down

At the Retail Level

  • Boomers Like Choices
  • Boomers Pay More for Quality But Like Bargains
  • Aging Boomers Less Tolerant of Poor Service
  • Pottery Barn, Barnes & Noble, Sharper Image Well Targeted to Boomers

V Mature Boomer Use Of Media

Overview

  • Boomers Are Major Media Consumers

Television and Radio

  • Older Adults Watch More Television Than 18- to 49-Year-Olds
  • Yet Most Programming Ignores Older Viewers
  • Advertisers Chasing Audience That Has Left Them
  • Age Groupings Obscure as Much as They Reveal
  • CBS Attempts to Change Groupings
  • Advertisers Prefer Younger Audiences, But Reasoning May Be Flawed
  • Nielsen Media Research Lists Top 10 Shows with Boomers
  • Growth of Cable Creates New Programming Options
  • Viewing Tastes Mellow with Age
  • Fewer Gender Differences Among Mature Audiences
  • Radio: Boomers Are Demographic Behind Many Stations

Print

  • Mature Americans Consume All Forms
  • Mature Boomers Major Part of Readership of Most Mainstream Publications
  • Growing List of Publications Targeted to Mature Audiences
  • Modern Maturity, the Largest-Circulation Mature Market Magazine
  • New Choices Focuses on "Living Even Better After 50"
  • McCall's Silver Becomes PrimeTime
  • Weider Publications Launches Three Titles for Mature Adults
  • More Targets Women 45 and Older
  • Publications Signal Boomer-Inspired Trend
  • Boomers Also Behind Surge in Home-Related Publications
  • Age Wave Publications Target Boomers at 55

Direct Mail

  • Catalogs Only Direct Mail Boomers Read
  • Don't Call Them "Senior"
  • Information Is Valued

Electronic Media

  • Use of Electronic Media Growing
  • SeniorNet—An Electronic Forum for the Mature Market
  • Primelife Advisory Network Seeks Electronic Input
  • Another PrimeLife Bills Itself as an "Intermag"

VI Marketing To Mature Boomers

Marketing Fundamentals

  • Marketers Know Boomers, But May Need to Revisit Them
  • What Worked with Previous Mature Audiences Won't Work with Boomers
  • No "One-Size-Fits-All" Mature Category
  • Boomers Not Planning to Slow Down
  • Boomers Don't Want to Change Lifestyle Because of Age
  • "This Is Not Your Father's Oldsmobile" Captures Right Attitude Product Must Be Right, Too
  • Product Must Meet Boomer Needs—as They Define Them
  • Humor a Key Ingredient
  • Boomers Want to Have Fun
  • New Experiences Motivate
  • Boomers Also Seek Balance, Simplicity
  • Five Key Values Motivate Mature Consumers
  • Autonomy and Self-Sufficiency One Half of Equation
  • Balanced by Social and Spiritual Connectedness
  • Altruism Tied to Social and Spiritual Connectedness
  • Personal Growth Also a Goal
  • Revitalization Reinforces Internal Self-Renewal
  • Most Effective Ads Reflect Two or More Values
  • Nostalgia Appeals to Boomers
  • Rock Music Captures Boomer Attention
  • Show Older Adults Breaking the Mold
  • "Ageless" Theme Also Effective
  • Say It with Positive Images and Testimonials

Use of Celebrities and Language When Marketing to Mature Consumers

  • Mature Adults Starved for Contemporary Role Models
  • Use of Celebrities Not Particularly Important
  • Boomers Not as Fussy About Language as Older Matures
  • Don't Address Them as an Age Group

VII Examples Of Campaigns And Strategies Targeted To Mature Boomers

Overview

  • Growing List of Marketers Taking Aim

Financial Services

  • Banks and Insurance Companies Have Produced Some of the Best
  • Advertising to Mature Boomers
  • Fidelity Targets Baby Boomers with 50th Birthday Ad
  • Bank of Boston
  • MasterCard's "Priceless" Campaign Reflects Changing Boomer Values
  • Prudential Campaign Utilizes Three of Five Key Values
  • State Farm Centennial Campaign 172
  • MetLife Sticks with Peanuts Characters

Food and Beverages

  • Green Giant's Create-A-Meal Captures "Empty-Nest" Boomer Spirit
  • Kellogg Effectively Targeting Wide Audience
  • Sprite Humorously Captures Generation Gap Angst
  • Burger King Uses Simple, Effective Approach

Automobiles

  • "Not Your Father's Oldsmobile" Captures Boomer Sentiments
  • Catera All Wrong Because Product, Advertising Weak
  • Saturn Sells Relationships
  • GM Includes All Ages in Recent Print Advertising
  • Volkswagen Offers Boomers Their Soul

Travel

  • Tour Companies, Resorts, and Travel Destinations Understand
  • Importance of Mature Market
  • Club Med Modifies Pitch to Sell "Community"

Apparel

  • Dearth of Clothing-Related Advertising Reflects Market Lack
  • Vanity Fair Includes Older Women in Advertising
  • New Balance Demonstrates Importance of Product Over Positioning

Healthcare Services

  • Few Healthcare Providers Advertise Nationally
  • Pharmaceutical Companies Have Long Targeted Mature Consumers
  • Viagra Is Age-Appropriate Advertising
  • Evista Also Advertised Effectively

Personal Care

  • Revlon Captures Right Attitude with "Age-Defying"
  • Oil of Olay Creates Memorable Ads with Beautiful Women
  • Rembrandt Age-Defying Toothpaste and Mouthwash

Appendix I: Examples Of Consumer Advertising

Appendix II: Selected Resources For Boomers At 50

Abstract:

Baby boomers will enjoy longer, more productive lives than any previous generation in American history. Packaged Facts' new report on boomers at 50 provides in-depth analysis of boomers who are 50-plus, including: demographics of the market; estimate of the market's size and projections for growth; consumer expenditures by category, shopping patterns, and retail preferences; media consumption; the fundamentals of marketing to maturing boomers; and examples of campaigns and strategies that effectively target today's maturing boomers.

Get full details about this report >

800.298.5294
Int'l: +1.240.747.3095
Buy this report >
Price and Delivery Options
Search Inside Report
Packaged Facts provides industry research reports, trend analysis and forecasts in consumer goods, food and beverage, pet products, financial services and personal care markets.
Copyright © 2014 Packaged Facts. All Rights Reserved.
A division of MarketResearch.com
9/23/2014 - 41
Contact Us: 800.298.5294 (U.S.)
or +1.240.747.3095 (Int'l)
Hours: Monday - Thursday: 5:30am - 6:30pm EST
Fridays: 5:30am - 5:30pm EST