Spending Power of Baby Boomers - US

Published by: Mintel International Group Ltd.

Published: Feb. 1, 2007 - 80 Pages

Table of Contents

Scope and Themes

What you need to know

Definition

Abbreviations and terms

Abbreviations

Terms

Executive Summary

Snapshot of the market

Market background

Family life

Boomers and money

Shopping

Leisure time

Media and advertising

Future trends

Market Background

Baby Boomer population profile

Age

Figure 1: U.S. population projections, 2002-12

Figure 2: U.S. generations, 2002-12

Ethnicity

Figure 3: Ethnic makeup of the total U.S. and Boomer population, 2006

Household descriptions and locations

Figure 4: Household profile, January-September 2005

Type of dwelling

Figure 5: Housing ownership profile, January-September 2005

Figure 6: Housing rental profile, January-September 2005

Figure 7: Living alone or with others according to own/rental status, October 2006

Figure 8: Details regarding living with others, October 2006

Family life

Figure 9: Attitudes regarding importance of family, January-September 2005

Relationships and marriage

Figure 10: Marriage profile, January-September 2005

Figure 11: Attitudes regarding relationships and the opposite sex, January-September 2005

Children

Figure 12: Attitudes regarding children, January-September 2005

Education

Figure 13: Education profile, January-September 2005

Career

Figure 14: Attitudes regarding career, January-September 2005

Religion

Figure 15: Attitudes regarding religion, January-September 2005

Boomers and Money

Attitudes towards financial matters and financial security

Figure 16: Personal assessment of financial security, October 2006

Figure 17: Personal assessment of income and spending patterns, October 2006

Figure 18: Attitudes towards disposable income, saving and splurging, October 2006

Figure 19: Attitudes towards other Boomers’ wealth and lifestyle, October 2006

Figure 20: Attitudes towards own wealth and lifestyle, October 2006

Figure 21: Attitudes regarding personal money, spending and debt, January-September 2005

Credit and debit cards

Figure 22: Credit card possession, January-September 2005

Investments

Figure 23: Ownership of various financial products, January-September 2005

Figure 24: Attitudes regarding investments and financial planning, January-September 2005

Shopping

Retail shopping

Figure 25: General attitudes about shopping, January-September 2005

Figure 26: Attitudes about shopping based on price, January-September 2005

Figure 27: Online shopping purchases, January-September 2005

Apparel

Figure 28: Attitudes regarding apparel and style, October 2006

Figure 29: Apparel qualities and preferences, January-September 2005

Leisure Time

General leisure activities

Figure 30: Participation in leisure activities over the last 12 months, January-September 2005

Activities inside the home

Reading

Figure 31: Type of book purchased in the last 12 months, January-September 2005

Figure 32: Number of audiobooks purchased in the last 12 months, January-September 2005

Figure 33: Number of hardcover books purchased in the last 12 months, January-September 2005

Figure 34: Number of paperback books purchased in the last 12 months, January-September 2005

Figure 35: Preferred place to purchase books, January-September 2005

Figure 36: Genres of books purchased, January-September 2005

Activities outside the home

Movies

Figure 37: Frequency of movie attendance in the last 90 days, January-September 2005

Live entertainment

Figure 38: Live entertainment attendance in the last 12 months, January-September 2005

Dining out

Figure 39: Visits to family restaurants and steakhouses in the last 30 days, January-September 2005

Athletic activities

Figure 40: Participation in physical exercise in the last 12 months, January-September 2005

Figure 41: Venues for conducting physical exercise, January-September 2005

Figure 42: Number of days exercise done per week, January-September 2005

Figure 43: Attitudes regarding shopping, January-September 2005

Travel

Media and Advertising

Media outlets and advertising

Figure 44: General attitudes regarding advertising, January-September 2005

Figure 45: Places where advertising is noticed—out of home, January-September 2005

Television and radio

Figure 46: Attitudes regarding television and advertising, January-September 2005

Figure 47: Attitudes regarding radio and advertising, January-September 2005

Magazines and newspapers

Figure 48: Attitudes regarding magazines and advertisements, January-September 2005

Figure 49: Attitudes regarding newspapers and advertisements, January-September 2005

Existing and recommended advertising strategies to target Boomers

Historical and cultural references and youthful, exciting themes

Celebrity endorsements

Humor

Focus on value

The “age” factor

Retail affinity

Figure 50: Top 20 department, discount, clothing and children’s stores, January-September 2005

Figure 51: Top 5 home furnishings stores, January-September 2005

Figure 52: Top 5 home improvement stores, January-September 2005

Figure 53: Top 5 electronics stores, January-September 2005

Figure 54: Top 5 drug stores, January-September 2005

Figure 55: Top 10 supermarkets and food stores, January-September 2005

Companies that cater specifically to Boomers

Forth & Towne

Elephant Pharmacy

Eq Life

Future Trends

Retirement, financial planning, and going skiing

Housing changes

Figure 56: Plans regarding living situation changes in the next five years, October 2006

Home health care, pharmacy retail changes

Insurance

Aging

Abstract

This report looks at the Baby Boomer generation as a large but underserved group that continues to redefine the attitudes and spending habits of aging consumers. This report analyzes information found in the Simmons National Consumer Survey, as well as proprietary research on Boomers, fielded by Mintel, to explore Boomers’ attitudes toward money and investments, shopping, leisure activities, advertising and media.

Accounting for nearly 30% of the U.S. population, the Baby Boomer generation is important not only because of its size, but also because it represents the wealthiest generation in the U.S., with an estimated annual spending power of over $2 trillion. Many marketers stop there and conceive of “Boomers” as a large, wealthy target. In reality, Boomers are an extremely diverse population in terms of tastes, spending priorities, financial concerns, living situations, interests and expectations. Although the shared experiences of the Vietnam War and the civil rights movement may have helped to shape their values and cultural mores, significant disparities in income, educational background, and habitation patterns persist.

Mintel defines Baby Boomers as individuals born between 1947 and 1966. In 2006, these individuals ranged in age from 40 to 59 years old. Due to the size and diversity of the Baby Boomers, Mintel has divided the group into two sub-segments, the “Older” boomers, born between 1947 and 1956, and the “Younger” Boomers, born between 1957 and 1966. Immigration to the United States across age groups has caused the current size of the Baby Boomer group in the United States to surge to a projected total of nearly 84 million in 2006.

Survey findings discussed in this report are based on the Fall 2005 Simmons NCS survey fielded among 24,617 adults aged 18 and over (including 9,700 Baby Boomers). This report also contains an analysis of Mintel’s unique Baby Boomer Spending Patterns consumer survey, conducted among 691 respondents aged 42-60 by Greenfield Online in October 2006

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