Marketers who are only focusing on the traditional 25-54 age demographic are missing about 58% of the US population totaling 180 million people, overlooking growth opportunities as baby boomers age and those younger than 25 wield increasing influence on household spending, according to data from The Nielsen Company.
55-plus Have Similar CPG Purchase Habits to 25-54
Nielsen data indicates that consumers age 55 and older have purchase habits nearly identical to those age 25-54 in many CPG product categories. Older consumers actually spend significantly more annually on dry grocery items, more than $1.4 billion compared to more than $1.2 billion for those age 25-54.
Older consumers also spend slightly more per year in the product categories of non-food, dairy, frozen, general merchandise, meat, and deli. They spend slightly less annually in the HBC, alcoholic beverage, and fresh produce categories.
Of all CPG categories listed, both age groups spend the most annually on dry grocery items by a wide margin.
Young Consumers Increasingly Multicultural
Breaking down the expected 2012 cultural mix of the 12-24 market by ethnicity, 55% will be white (non-Hispanic), 22% will be Hispanic, 15% will be African-American, and 6% will be Asian.
- When purchasing tablets (88%) and smartphones (72%), the great majority of families rely on the influence of consumers younger than 25 when selecting a brand.
- The 55-plus age group logs the most hours watching TV per day (6.5 hours).
- The 55-plus age group spends 85 minutes per day online, 15 more minutes than those in the 12-24 age group.
- 75% of both the 55-plus and 12-24 age groups are online and watching TV simultaneously, which can double ad recall.
- Those in the 55-plus age group are just as likely to switch brands as those aged 25-54.
Consumer Reports: Consumer Behavior Struggles for Traction
The June 2011 Consumer Reports Past 30-Day Retail Index, reflecting May activity, is 12, almost unchanged from the prior month (11.7). The Consumer Reports Next 30-Day Retail Index, reflecting planned purchasing in June, is also close to unchanged, standing at 9, compared to 8.2 the prior month.
Looking in detail at the categories comprising the Consumer Reports Past 30-Day Retail Index, June’s softness was the result of declines in personal electronics (22.1%), down 5% from 23.2% the prior month; and major home electronics (12.6%), down 7% from 13.6% a month earlier. Major appliances (9.4%) was up 9% from May (8.1%), and major yard/garden equipment, at 6.7%, was up 31% from 5.1% in May.