Marketers Still Struggling With Over-50s Boom

Seniors are the most affluent consumer group in the UK, as well as the fastest growing, according to a recent report from Datamonitor. 'Older consumers: Destroying marketing myths' looks in detail at trends influencing the senior market over the next five years in Europe and the US.

Britain's twenty million over-50s - a third of the population - are Europe's wealthiest, in particular those aged 50 to 64, with a disposable income 56.5% higher than the national average and spending power increased by almost 30% in the last five years. Seniors in the UK now represent a spending power of £267 billion, and Datamonitor forecasts it will increase by a further £33bn, to £300 billion in 2008.

The UK has one of the highest numbers of seniors in employment in Europe. In 2003, there were almost 7 million workers aged 50+ in the UK and their number is forecast to increase at an annual rate of 3% over the next five years to reach 8 million in 2008.

The group is anything but homogenous however. Seniors aged between 50 and 64 enjoy the highest levels of disposable income in Europe, at almost £16,000 in 2003, whereas those aged over 65 average only £10,550. The report predicts that 'this will become more of an factor with the deepening pensions crisis'.

Datamonitor suggests that despite a lot of talk about their growing influence and potential, marketers have [still] been turning a blind eye to the over-50s 'in the belief that they get older consumers anyway and that brand loyalty is very high'. According to Danielle Rebelo, Consumer Markets Analyst and author of the report, 'The changing Senior group has resulted in a generation that desires novel experiences, has the financial circumstances to trade-up to higher quality products and values convenience'.

The 'baby boomers' generation are now in their 50s, and their values have brought a whole new meaning to 'being seniors': although the age gap between generations is growing, the report says today's over-50s have more in common with their children than previous generations because they 'developed their adult identity in the era in which youth culture was first manifested'.

The report also cites rising disposable income, the introduction of low-cost airlines, and rising internet usage for making different cultures are more accessible to Seniors. As a result, 'they are no longer the homogeneous group they once were' according to Rebelo. Targeting seniors by specific age segment is therefore wrong: 'Age-based marketing is increasingly counterproductive as age becomes less useful for defining peoples' values, attitudes and behaviours'.

All articles 2006-23 written and edited by Mel Crowther and/or Nick Thomas, 2024- by Nick Thomas, unless otherwise stated.

• Datamonitor
• All news