Grandparents Growing into Major Consumer Segment

February 14, 2011

nielsen-spending-by-grandparents-feb11.gifThere are currently 69.6 million grandparents in the US, a figure expected to grow another 11% to roughly 76 million between now and 2015, according to new data from The Nielsen Company. Nielsen research reveals that grandparent households spend 4.4% more per year than all other households, which equates to an extra spend of more than $300 a year.

Single-Grandchild Grandparents Spend More

nielsen-grandparents-1-grandkid-feb-11.JPGInterestingly, having multiple grandchildren does not translate to more spending. In fact, grandparents in the survey with only one grandchild actually spend two times more than grandparents with two to 10 grandkids.

The exception is grandparents with more than 10 grandkids, they actually spend $79 less per year than non-grandparent households. Nielsen analysis suggests grandparents with one grandchild are likely younger and still working and may be more inclined to show their love with greater spending. Similarly, households with more grandkids are likely to be older and therefore have weaker spending power.

4 in 10 Grandparents Help with Bills

Fully 39% of grandparents in the Nielsen survey provide some kind of support to help their grandchildren. Nearly one in four (23%) buy clothing for their grandkids and one in five purchase food and beverages.

Grandparents also sometimes help out with household and personal care purchases (16%), education expenses (10%), daycare costs (8%) and medical care/doctor visits (5%).

Grandparents Shop More Often in Many Channels

Grandparent households spend more than average in a number of retail channels, especially those with greater gift-giving options. Supercenters, warehouse club outlets, dollar stores and convenience/gas chains all over-index compared to non-grandparent households. With fewer mouths to feed, it is no surprise that they spend less than average in the grocery channel.

However, Nielsen research also showed how grandparents who see their grandchildren daily or several times per week (one-third of those surveyed) are bigger spenders.

Email Top Online Grandparent Activity

nielsen-grandparents-online-activity-feb-11.JPGSending and receiving email is the most popular online activity for grandparents, with 82% participating. Another 78% have specifically sent or received personal email.

Paying bills, checking the weather, printing maps and directions, reading the news, visiting social network sites, accessing personal health care information and playing online games are also internet-based activities enjoyed by a surprisingly high percentage of grandparents.

1 in 10 US Kids Lives with Grandparent(s)

One child in 10 in the US lives with a grandparent or grandparents, according to recent Pew Research Center analysis of US Census Bureau data. Pew analysis indicates the share of US children living with a grandparent/grandparents increased slowly and steadily during the past decade before rising sharply from 2007 to 2008, the first year of the Great Recession. There are about 2.9 million US children living with a grandparent as of 2008, compared to 2.5 million in 2000. That figure jumped 6% between 2007 and 2008.

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