The silver economy refers to all products, services, and activities designed to meet the needs of people over 55.
Originating from Japan's "silver market" in the 1970s, this concept now spans sectors like healthcare, finance, automotive, energy, housing, telecommunications, and tourism. It continues to grow as a significant part of the economy, with an estimated 1 in 60 people being aged 60+ by 2030, that's an estimated 1.4billion people.
Technology is rapidly transforming the silver economy, with innovations in AI and e-health driving new ways to serve this cohort. Baby boomers, often free of debt and with strong purchasing power, are increasingly spending on experiences and lifestyles they value. Post-pandemic, many are opting to downsize to more flexible homes or join retirement communities, allowing them to travel and enjoy their retirement.
Health and wellness are priorities for this group, with a strong interest in fitness apps, nutritious products, and active lifestyles. Boomers enjoy sports, fashion, and global cuisines, creating openings for brands that cater to their preferences. Their loyalty to brands is also notable, and they seek products and services that cater to their specific needs. They are also less likely to experiment with more cutting edge flavours and ingredients.
It is also worth noting that those 55+ fall into different stages given the country they are living in. In more affluent countries with access to better dental and healthcare those 55+ are likely to live longer by 30 years than those in poorer countries. They are also less likely to require foods that are easy to eat (pureed, softened), given that they will have had access to good dental care. Prosperity matters and 55+ consumers are looking for products that support good health, but also address taste and affordability. As you age taste buds do change, but the desire for sweet remains. So, advertising a brand "less sweet" may find buyers in the younger band, whereas an older cohort will not be interested.
This generation, while mature, does not feel "old," and forward-thinking brands are responding with innovative, personalised offerings that match their vitality and interests. The silver economy is a vibrant market driven by a generation keen to continue to live well and explore new possibilities. Myths that those 55+ are frail, or lonely or unhappy or that they are afraid of tech should be debunked. The challenge for food and beverage brands is to step up and address this demographic with natural, affordable and familiar products with a twist.
Renovation rather than innovation seems to be the rule and those brands with history with this demographic are more likely to hold this sector. Think larger font on labels, easy to open packs or bottles, new packaging or variants of old favourites.
Over 55's are not who you think they are - do the research as the nuances matter.
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