FDBusiness.com

Tetra Pak has released a consumer study to highlight opportunities in the food and beverage market for seniors, those aged 60 and over, the fastest growing consumer group in the world. Libby Costin, VP Global Marketing at Tetra Pak, says: “Seniors spend 20% of their income on food and beverages. They havemore disposable income than previous generations, and are poised to become one of the most important consumer groups over the next decade with a total spending power of US$10 trillion by 2020. This creates a huge opportunity for manufacturers to respond to their needs.”

This report is the latest edition of Tetra Pak’s annual Consumer Generations Whitepaper series which analyses consumers by their age, needs and spending habits. It investigates senior consumer trends in food, packaging and shopping experience, and identifies product opportunities for producers, based on insights from 27 countries across developed and developing markets such as Japan, the US and Brazil.

Key findings:

1. 32% of Seniors actively look for products and services that help them live a healthy lifestyle.
2. They prefer traditional tastes to ‘experimental’ ones. This extends beyond the product to the packaging, which they want to look and feel traditional, rather than appear overly radical or be ‘different for different sake.’
3. Seniors are loyal shoppers. Once they find a brand that satisfies them, 30% usually don’t experiment with new ones. They also tend to shop closer to home, and in smaller stores.
4. Seniors demand greater quality, with 92% finding product quality very important, and they are willing to pay more for it.
5. Generally, they dislike being made to feel “old” by marketers. They prefer products and packaging that are subtle: ones that are ageless but appeal indirectly to their demographic, rather than those that appear directly targeted at them because of their age. For example, they find “For Seniors!” branding unappealing.

Implications for the food and drink industry

Seniors have more time on their hands and greater spending power compared with other demographics. This has led to the emergence of significant opportunities for producers who can respond to the habits of the fastest growing consumer age group around the world.

1. Offer products with healthy ingredients. Seniors value a healthy, active lifestyle, and use food and/or drinks to improve their health. They are willing to pay a premium for products that meet those needs.
2. Fortify food and drinks with additional minerals and vitamins. Seniors are heavy consumers of vitamins and supplements. Food and drinks that are fortified with additional minerals and vitamins aimed at promoting stronger bones, or better digestive or cardiovascular health are of significant interest. There is a particular opportunity for foods and products which meet these needs in developed markets, where there are higher incomes and a greater awareness of senior-specific health issues.