Empty Nesters 2005

TABLE OF CONTENTS
CHAPTER 1 EXECUTIVE SUMMARY 3
Hot topic 3
The future decoded 3
Action points 4
CHAPTER 2 THE FUTURE DECODED 14
Introduction 14
TREND: Empty Nesters are a rapidly growing group 15
The number of Early Empty Nesters is growing fastest 16
Empty Nesters change their attitudes and behaviors 17
TREND: Empty Nesters’ expenditure is growing faster than their income 19
Empty Nesters’ incomes vary a lot according to age 19
Empty Nesters are spending more on CPGs 22
Empty Nesters’ per capita food budgets increase 23
Spending on alcohol is limited by health concerns 24
Empty Nesters want to look and feel “good for their age” 25
INSIGHT: Empty Nesters are becoming more experimental and self-indulgent 26
An increase in free time leads to more frequent socializing 26
American Empty Nesters are growing more experimental faster than Europeans 29
INSIGHT: Empty Nesters are increasingly concerned about their health 35
Empty Nesters can address health problems through diet 36
Empty Nesters are more likely to buy organic and fresh products 38
Empty Nesters place more value on taste than on health when making food choices 38
INSIGHT: newly-found spare time means that convenience is less important for Empty Nesters 40
Increased control of their time reduces the need for convenience 40
Conclusions 43
CHAPTER 3 ACTION POINTS 44
Introduction 44
Target Empty Nesters’ attitudes, not their age 44
Use marketing campaigns to shift the “center of gravity” 44
Use ageless marketing to target Empty Nesters 46
Communicate effectively with Empty Nesters 49
Do not patronize Empty Nesters and avoid stereotyping 49
Messages should be clear, straightforward and above all honest 50
Use positive advertising when targeting Late Empty Nesters 53
Focus on certain channels to reach Empty Nesters 54
Use partnership marketing to increase brand appeal 55
Develop partnerships with third parties to promote trust 56
Target Empty Nesters with healthy, high quality and convenient products 58
Target Empty Nesters with convenient products to facilitate their lifestyle 58
Convenient products must provide a quality food experience 59
Encourage Empty Nesters to trade up for special occasions 60
Special occasions require high quality products 60
There are two basic relevant types of special occasion 60
Target Early Empty Nesters’ consumption at work 61
CHAPTER 4 APPENDIX 63
Supplementary data 63
Definitions 73
Research methodology 73
Relevant links 74
How to contact experts in your industry 74


LIST OF TABLES
Table 1: Empty Nesters as a percentage of all Seniors, 1999-2009 15
Table 2: Number of Empty Nesters in Europe and the US (m), 1999-2009 17
Table 3: Early Empty Nesters' disposable income as a percentage of the national average, 1999-2009 20
Table 4: Late Empty Nesters' disposable income as a percentage of the national average, 1999-2009 20
Table 5: Annual per capita disposable income of Empty Nesters (€ & US$), 2004-2009 21
Table 6: Empty Nesters' overall spending on groceries, drinks at home and personal care (€bn & US$bn), 2004-2009 22
Table 7: Empty Nesters' annual per head spending on groceries, drinks at home and personal care (€& US$), 2004-2009 23
Table 8: Empty Nesters' annual per head spending on food (€ & US$) 2004-2009 24
Table 9: Empty Nesters' annual per head spending on alcohol (€ & US$) 2004-2009 25
Table 10: Empty Nesters' annual per head spending on personal care (€ & US$) 2004-2009 26
Table 11: Consumer survey: ‘How much more or less have you used your home for entertaining in the past year?’ 29
Table 12: Consumer survey: ‘How much more or less have you tried food and drinks that you haven't tried before in the past year?’ 30
Table 13: Consumer survey: How much do you agree with the following statement: ‘I live for today and not for tomorrow’ 32
Table 14: Consumer survey: ‘How much more or less have you sought more excitement and sensations in your life?’ 33
Table 15: Consumer survey: ‘How much more or less have you spent money on experiencing new things rather than buying more products in the shops in the last year?’ 34
Table 16: Consumer survey: ‘How important to you is improving your health through your diet?’ 37
Table 17: Consumer survey: ‘How much do you agree with the following statement: ‘Taste is more important than health when choosing food and drinks’ ‘? 39
Table 18: Consumer survey: ‘How important are time-saving products and services to you?’ 41
Table 19: Consumer survey: ‘How much more would you be ready to spend on time-saving products and services?’ 42
Table 20: Consumer survey: ‘How much do you trust health-boosting claims made by food and drink manufacturers?’ 51
Table 21: Consumer survey: ‘How much more would you be prepared to pay for an ethical or socially responsible food, drink or personal care product?’ 58
Table 22: Empty Nesters in Europe and the US (m), 1999-2009 63
Table 23: Late Empty Nesters in Europe and the US (m), 1999-2009 64
Table 24: Early Empty Nesters' annual household spending on groceries (€ & US$), 1999-2009 64
Table 25: Late Empty Nesters' annual household spending on groceries (€ & US$), 1999-2009 65
Table 26: Early Empty Nesters' annual per capita spending on alcohol at home (€ & US$), 1999-2009 66
Table 27: Late Empty Nesters' spending on alcohol at home (€ & US$), 1999-2009 67
Table 28: Early Empty Nesters' spending on personal care (€ & US$), 1999-2009 68
Table 29: Late Empty Nesters' spending on personal care (€ & US$), 1999-2009 69
Table 30: Annual per capita disposable income for Early Empty Nesters (€ and US$), 1999-2009 70
Table 31: Annual per capita disposable income for Late Empty Nesters (€ and US$), 1999-2009 71
Table 32: Consumer survey: ‘How much more would you be prepared to pay for a green energy tariff?’ 72
Table 33: Definitions of terms used in the report 73


LIST OF FIGURES
Figure 1: In the US, Early Empty Nesters are particularly valuable, earning considerably more than their European counterparts 19
Figure 2: Empty Nesters’ social lives increasingly take place outside the home 28
Figure 3: American Empty Nesters are becoming more experimental than their European counterparts 30
Figure 4: European Empty Nesters in particular want to live for the moment 31
Figure 5: European Empty Nesters are hungrier for excitement 32
Figure 6: Empty Nesters’ desire for new experiences is not always matched by their readiness to spend accordingly 34
Figure 7: Empty Nesters believe that diet is crucial to their health 36
Figure 8: Empty Nesters place taste above health properties 39
Figure 9: Time-saving products and services are less important to Empty Nesters 40
Figure 10: Empty Nesters are less willing than other Seniors to pay more for convenience 42
Figure 11: Target Seniors by shifting the “center of gravity” in marketing campaigns from their chronological age to their desired age 45
Figure 12: Ageless images from the New Balance marketing campaign 49
Figure 13: Empty Nesters are less inclined to trust manufacturers’ health claims 51
Figure 14: Images used in the Dove “Real Beauty” campaign appeal to Empty Nesters 53
Figure 15: Most suitable communication channels for targeting Seniors 55
Figure 16: Partnership marketing alters the image of brands and can make them more appealing to Empty Nesters 56
Figure 17: Many Empty Nesters are willing to spend money on ethically produced goods 57
Figure 18: Products that provide convenience and quality experiences 60
Figure 19: American Empty Nesters are willing to pay more for green energy tariffs than Europeans 72