MARKETERS – REMEMBER THE BABY BOOMERS
Baby Boomers annual spending power in the United States is $2.3 trillion annually. In Canada, households aged 65 and over had an average net worth of $845,600 in 2016. That’s an 86% increase since 1999 after adjusting for inflation. Despite their wealth, most marketers’ attention has been diverted to the Millennials and Generation Z.
This is understandable given how these sectors have re-shaped today’s food trends:
1. Increased demand for organic and frozen foods.
2. The emergence of Plant-based foods.
3. Product transparency and Clean labels.
Though Baby Boomers are considered to be set in their ways and entrenched in their brands of choice, they are a segment in which the 50+group accounts for 50% of all consumer expenditures, yet only 10% of marketing dollars are targeted towards them.
Welcome to “Marketers – Remember the Baby Boomers”!
Look at the generational breakdown. Who has the biggest net worth, and who has the biggest total income?
BABY BOOMERS – THE GREATEST PURCHASING POWER
Answer: Boomers, and Boomers.
This group focuses on healthy-eating. Health conscious baby boomers are reading between the lines and looking to food and beverage labels for a variety of reasons. Their main concern? Knowing that a product is healthy. They are (33%) more than twice as likely as Millennials (15%) to prioritize wanting product labels that provided the information they can better understand as the top priority. In fact:
- 72% of Baby Boomers are reading labels on food or beverage products to know that the product is healthy.
- 51% of Baby Boomers are reading labels on food or beverage products to know that the product is safe.
Research also reveals Boomers are into snacking. NPD Research reveals Boomers eat ready-to-eat snack food 20% more often than Millennials, and 43% of baby boomers believe taste is more important than health for salty snacks. Top 5 Boomer snacks are 1. Fruit, 2. Chocolate Candy / Candy Bars, 3. Potato Chips, 4. Nuts, 5. Yogurt.
Marketers must also get past the antiquated notion that Baby Boomers are not tech-savvy and shun the digital world. “The 50+ audience is much more tech-savvy than a lot of marketers give it credit for. Most people don’t realize how multi-channel and multi-device this audience is.” —Barbara Shipley, SVP of Brand Integration at AARP. In fact, 50% of consumers between the ages of 50-64 are active on social media, with Facebook being their top platform.
In today’s CPG world, brand loyalty is scarce and sacred. Brands and retailers need to embrace this older demographic and take their needs and behaviors into consideration in order to give themselves an opportunity to grow. Come prepared with a multi facet marketing campaign. A study undertaken by the University of Michigan demonstrated that marketing campaigns targeting Boomers are twice as likely to be successful as those targeting Millennials. Embrace this sector. Do not alienate them.