The Future's Grey

Older consumers (aged 55 plus) will account for more than half of all spend on food, drink and household products by 2006 - £53bn of a predicted £104.4bn market - according to a new report from Reuters Business Insight and TNS.

Marketers may be tired of being told it, but they still fail to reach older consumers effectively, according to the report. Just one in six say they buy a product often because it is advertised. Six out of ten say they fast forward through the adverts on programmes they video. They are brand conscious, but few use adverts to help them make brand choices or to drive their purchasing behaviour. In fact, only a third of 55-pluses claim to enjoy trying new brands, compared to 43% of under 55s.

Older consumers shop an average of 5 times a week, compared to 3.5 times a week for younger consumers, preferring to shop around more and plan their purchases. They claim to spend an average of £10 when they go shopping, compared to £14 for under-55s.

Some of the findings appear to run contrary to stereotypes about age. Older consumers spend £44 per head more than the under 55s each year on take-home alcohol; they are more open to organic, environmentally friendly and free range products than younger consumers, and more likely to avoid genetically modified foods.

Other findings are perhaps more predictable. Almost half of 55-Pluses love a traditional roast dinner at home, and 50% claim to buy British wherever they can, compared to just 28% of younger consumers. Older consumers plan more, are more willing to pay for quality, and enjoy cooking for themselves more.

The 55-pluses tend to trust more in established brands, but are only slightly more likely than under-55s to stick with a brand that they like. Brands that are very popular among the 55-pluses include both PG Tips and Tetley Tea, Kit Kat and Silver Spoon. However, a massive belt of brands are more age-neutral, including big names such as Persil, McVitie's and Hovis. These brands are the battleground of the future, according to Reuters: demographics are forcing up the average age of their consumers and what used to be 'family brands' have a significant audience that no longer fit the traditional mould.

According to Ben Longman, Reuters Business Insight consumer analyst, 'Just as with the mainstream market, the 'grey' market is fragmenting rapidly. For marketers, the consumers' age is only important in the context of other considerations such as consumer health, attitudes, disposable income and lifestyle. Marketers still have much to learn about senior consumers, and manufacturers have a lot to gain from getting it right'.

TNS Superpanel is the largest panel of its kind in Europe. The sample is demographically and regionally balanced to offer a representative picture of the GB market place. 'The Older Consumer' is priced £995.00 - more information is available from RBI Sales on ++ 44 207 675 7486, or info@rbi-reports.com

All articles 2006-23 written and edited by Mel Crowther and/or Nick Thomas unless otherwise stated.

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