Aging Populations: Changing Alcoholic Drinks Needs & Behaviors of Senior Consumers
Introduction
The Seniors (50 years old +) age group is experiencing rapid growth as global populations age. This will have a fundamental impact on the center of gravity in CPG sectors. The alcohol industry has traditionally relied on young consumers, but the value of Seniors is potentially huge. This necessitates a rethink to position players "ahead of the curve" by understanding their attitudes and behaviors.
Scope
*Detailed insights and analysis documenting the rise in the Senior population and how this differs on a regional basis
*In-depth and comprehensive quantitative and qualitative data covering the changing make up of populations, their attitudes and behaviors
*Detailed insights and analysis on the factors influencing Seniors' behavior in the field of alcoholic drinks
*19 countries covered including France, Germany, Italy, Netherlands, Spain, Sweden, UK, US, Russia, Australia, Japan, South Korea, China, India, Brazil
Highlights
Tastes and attitudes are subject to a significant degree of change as consumers grow older. The rising average ages of major markets' populations and large potential spending power makes Seniors an important demographic for the alcoholic drinks industry. However, the industry has been largely unsuccessful in targeting products at them.
While there are many similarities between Seniors and other consumers in their purchase motivations, there are some subtle differences. 'Taste and flavor' remains the most important choice driver for Seniors, with 67% of Early Seniors and 65% of Late Seniors citing taste as having a 'high' or 'very high' influence on their choices.
A higher proportion of Seniors than younger age groups will refrain completely from the consumption of alcoholic beverages. Much of this propensity can be attributed to heightened health concerns, as some consumers see the healthiest approach to alcohol is simply to avoid it completely.
Reasons to Purchase
*Gain an understanding of Seniors' specific preferences in the field of alcoholic drinks
*Use the latest evidence based insights to launch/ reposition products so that they are positioned to capture the significant spending power of Seniors
*Access a compelling blend of quantitative and qualitative data illustrating consumer attitudes and market developments
Overview 1
Catalyst 1
Summary 1
Table of Contents 2
Table of figures 3
Table of tables 4
THE FUTURE DECODED 5
INTRODUCTION: Seniors have different needs from younger consumers in the field of alcoholic drinks 5
TREND: The population aged 50 plus is expected to continue expanding 6
Seniors are an important group due to their sheer number 6
Seniors account for a large proportion of US and European society 7
Growth in the Seniors population in Asia Pacific and other emerging markets is commercially appealing 8
Rising median age confirms the aging of society 10
Rising life expectancy, declining mortality rate and decreasing fertility rate are the main contributors 10
The number of Seniors and their market potential cannot be ignored 11
Key takeouts and implications: the world population is getting older 13
TREND: The Senior population grouping consists of several different sub-cohorts 13
The US: differences among the GI generation, silent generation and baby boomers need to be recognized 13
Baby boomers entering the 50-plus cohort could bring fundamental change to how 'aging' is defined 14
Japan: the dankai generation are re-defining the meaning of otona (adult) 16
Beyond demographic groups: understanding where the generations are from is the key to communication 18
Key takeouts and implications: consumers in the 50-plus cohort are not all the same 18
TREND: Seniors' financial status heavily influences their purchasing behavior 18
Seniors are well attuned to the premiumization philosophy of 'less but better' 18
Aging population and the impact on wealth: grow old and rich, or old and poor? 19
The financial status of the 50-plus cohort is affected by their family stage 20
The recessionary environment is a cause for concern among the 50-plus population 20
The housing market downturn is problematic for Seniors 21
Seniors have cut the frequency with which they trade up in food and drinks 22
The alcoholic drinks market has seen little premiumization in 2008 with Seniors greatly affected 23
Seniors' up-trading is reasonably robust in personal care categories 24
Seniors may change certain aspects of their lifestyles less than younger adults in the current economic environment 25
Key takeouts and implications: the purchasing power of the 50-plus age cohort is varied 26
TREND: Attitudes to alcohol are susceptible to change with age 26
Many Seniors strive to ensure that they do not drink too much alcohol 27
The majority of Seniors are happy with the amount of alcohol they consume 28
Particular health concerns rise with age, influencing drinking behavior 29
Bone fractures and osteoporosis are of more concern to Seniors than younger age groups 30
A wide variety of health benefits have been ascribed to moderate alcohol consumption 31
Health considerations are not a major motivator in Seniors' moderation of alcohol consumption 32
Seniors are more likely than some age groups to abstain completely from alcohol consumption 32
Seniors seek small indulgences to assist in escapism from everyday life 33
Seniors are more concerned about enjoying small indulgences in 2008 when compared to 2006 34
Factors influencing Seniors' choice of alcoholic beverages show some subtle differences to younger consumers 35
Seniors are less likely than younger consumers to let health implications influence their choice of alcoholic drinks 37
Key takeouts and implications: Seniors' attitudes towards alcohol are noticeably different to the prevalent trends among younger age groups 38
TREND: Inhibitors to alcohol consumption are of greater concern to Seniors than younger consumers 39
Seniors are more concerned about the amount of money they spend on alcohol 39
The majority of Seniors drink more regularly at home rather than in on-trade establishments 40
On-trade smoking bans evoke polarized feelings in Seniors 42
Negative health implications are more prevalent in Seniors than in younger age groups 43
Potential weight gain is of more concern to Seniors than younger age cohorts when drinking alcohol 43
Key takeouts and implications: concern over inhibiting factors is high among many Seniors 44
INSIGHT: The beer, cider & FABs category does not dominate among Seniors 45
Seniors are less likely to drink beer than younger age groups 45
In most countries, Seniors account for a relatively small share of the beer market 46
The Japanese beer market is reliant on Seniors for a high share of sales 48
Beer drinking is not a regular occurrence among the majority of Seniors 49
Beer is most popular with Seniors in an on-trade environment, when not eating 50
Some studies suggest that beer can be as healthy as wine when consumed in moderation 51
Key takeouts and implications: beer has a strong following among Seniors, but is not dominant 52
INSIGHT: Wine is a popular drink among Seniors 52
Seniors account for the largest share of market value in the wine market in many countries 54
Widely reported health benefits contribute to making wine a popular drink with some Seniors 56
Wine is often seen as an ideal accompaniment to food 56
Key takeouts and implications: wine is already the most popular alcoholic beverage among Seniors 57
INSIGHT: The spirits category is heavily reliant on Seniors 57
In many of the featured countries, Seniors account for the largest share of the spirits market by age 58
Spirits are enjoyed as an occasional indulgence by Seniors 60
Key takeouts and implications: Seniors only drink spirits occasionally, but account for the largest share of this market sector 61
ACTION POINTS 62
ACTION: Make older consumers a core target audience for value growth in the off-trade 62
Take advantage of the variety of the off-trade and its value-for-money credentials 62
The on-trade can also benefit from attracting more Seniors 62
ACTION: Pursue opportunities in the provision of 'better-for-you' alcoholic drinks to Seniors 63
Use 'better-for-you' innovation as an opportunity to attract Senior drinkers to the beer and wine categories 63
ACTION: Consider introducing products and variants that appeal to Seniors 65
Learn from the efforts of alternative CPG segments in targeting Seniors 66
Be realistic in promotional efforts targeted at seniors on a category-by-category basis 67
ACTION: Actively market to Seniors without alienating younger age cohorts 67
'Ageless marketing' is a concept that can be used to create universal appeal for a product 67
Brand heritage and tradition can be important to some Seniors 68
Appeal to values that are important to Seniors 68
Avoid alienating younger demographics 69
ACTION: Play the long-game in targeting emerging market opportunities 69
APPENDIX 71
Definitions 71
Methodology 71
Further reading and references 72
Ask the analyst 73
Datamonitor consulting 73
Disclaimer 73
List of Tables
Table 1: Senior population (m) by country, US & Europe, 2002-2012 8
Table 2: Senior population (m) by country, Asia Pacific and emerging markets, 2002-2012 9
Table 3: Median age of world population across countries, 2002-2012 10
Table 4: Life expectancy, mortality rate and fertility rate across 18 countries in Europe, the Americas and Asia Pacific, 1990-2006 11
Table 5: Consumer survey: the level of attention given to 'ensuring you do not drink too much alcohol in general', by age, in 15 countries across Europe, Asia Pacific, South America and the US, 2008 28
Table 6: Consumer survey: the extent to which consumers had moderated their alcohol consumption in the past six months (2008), in 15 countries across Europe, Asia Pacific, South America and the US, by age 29
Table 7: Consumer survey: the degree of attention respondents pay to their own heart health, by age, in 15 countries across Europe, Asia Pacific, South America and the US, 2008 30
Table 8: Consumer survey: the amount of attention given by respondents to bone health, by age, in 15 countries across Europe, Asia Pacific, South America and the US, 2008 30
Table 9: Consumer survey: the extent to which respondents agree that drinking alcohol in moderation is good for health, by age, in 15 countries across Europe, Asia Pacific, South America and the US, 2008 32
Table 10: The percentage of consumers abstaining from alcohol consumption by age range, in 15 countries across Europe, Asia Pacific, South America and the US, 2008 33
Table 11: Consumer survey: the propensity of consumers to change the frequency with which they enjoy small indulgences to escape the pressures of everyday life, in 15 countries across Europe, Asia Pacific, South America and the US 34
Table 12: Consumer survey: the extent to which consumers have altered their choice of alcoholic drinks in the last six months on health considerations (2008), by age, in 15 countries across Europe, Asia Pacific and the US 38
Table 13: Consumer survey: the amount of attention given by respondents to the amount of money spent on alcohol, by age, in 15 countries across Europe, Asia Pacific, South America and the US, 2008 39
Table 14: Consumer survey: the amount of attention given by respondents to the long-term health implications of drinking too much alcohol, by age, in 15 countries across Europe, Asia Pacific, South America and the US, 2008 43
Table 15: Consumer survey: the amount of attention given by respondents to potential weight gain from drinking alcohol, by age, in 15 countries across Europe, Asia Pacific, South America and the US, 2008 44
Table 16: The market value of the beer, cider and FABs category, by age, in 19 countries across Europe, Asia Pacific, South America and the US, 2007 48
Table 17: Consumer survey: the frequency with which consumers drink beer, by age, in 15 countries across Europe, Asia Pacific, South America and the US, 2008 50
Table 18: Share (%) of value sales within the wine category, by age, in 19 countries across Europe, Asia Pacific, South America and the US, 2007 55
Table 19: Consumer survey: the extent to which consumers had chosen alcohol based on its compatibility with food in the last six months (2008), by age, in 15 countries across Europe, Asia Pacific, South America and the US 57
Table 20: The market value of the spirits category, by age, in 19 countries across Europe, Asia Pacific, South America and the US, 2007 59
Table 21: Consumer survey: the frequency with which consumers drink spirits, by age, in 15 countries across Europe, Asia Pacific, South America and the US, 2008 60
List of Figures
Figure 1: A number of factors are responsible for the attitudes of Seniors towards alcohol 6
Figure 2: Baby boomers' lack of technophobia has contributed to the success of home entertainment technologies 15
Figure 3: Apple's iPod is also popular among baby boomers 16
Figure 4: Media, including websites and magazines, have turned their attention to the dankai generation and senior population in Japan 17
Figure 5: Mortgage affordability and smaller subsequent generations are now affecting Seniors 21
Figure 6: Seniors have traded up less than Young Adults in 2008 22
Figure 7: Seniors have been particularly slow to trade up in the on-trade in 2008 23
Figure 8: All consumers, including Seniors, have been keener to trade up when drinking at home in 2008 24
Figure 9: Personal care has been one of the markets that has most commonly experienced up-trading in 2008, but Seniors have lagged behind 25
Figure 10: Seniors felt less concerned by economic downturn in the first half of 2008 26
Figure 11: Seniors are looking to enjoy more small indulgences in 2008 compared to 2006 35
Figure 12: Factors influencing all consumers' choice of alcoholic beverages 36
Figure 13: Factors influencing Seniors' choice of alcoholic beverages show some subtle differences 37
Figure 14: Seniors are less likely to drink regularly in the on-trade compared to other age groups 41
Figure 15: Seniors are slightly more likely than average to enjoy alcoholic drinks at home 42
Figure 16: Beer, cider & FABs accounts for over half of market value when looking at all 19 featured countries across Europe, Asia Pacific and the Americas 45
Figure 17: The beer, cider and FABs category is not dominant among Seniors (50+ years old) 46
Figure 18: Case study: beer brands in Japan have been able to introduce some products to the market that have proved popular with Seniors 49
Figure 19: Beer is substantially more popular than any other drink with Seniors when visiting the on-trade but not eating 51
Figure 20: Wine is the most popular category among Seniors in terms of market value 53
Figure 21: Seniors drink wine more frequently when compared to the average consumer 54
Figure 22: Spirits is the least valuable category in Seniors' alcoholic drinks, but still accounts for almost one third of market value among this demographic 58
Figure 23: Seniors account for the biggest share of the spirits market by age 60
Figure 24: Better-for-you innovation opportunities exist outside of the beer category 65
Figure 25: Campbell's V8 juice brand has made an attempt to incorporate Seniors in its advertising campaigns 66
Figure 26: Brown-Forman's Jack Daniels brand has successfully appealed to Seniors through heritage and tradition, avoiding the alienation of Young Adults and Early Mid-Lifers 68
