Aging Populations: Changing Alcoholic Drinks Needs & Behaviors of Senior Consumers

Published by: Datamonitor

Published: Feb. 12, 2009 - 27 Pages

Table of Contents

Overview

Catalyst

Summary

Table of Contents

Table of figures

Table of tables

THE FUTURE DECODED

INTRODUCTION: Seniors have different needs from younger consumers in the field of alcoholic drinks

TREND: The population aged 50 plus is expected to continue expanding

Seniors are an important group due to their sheer number

Seniors account for a large proportion of US and European society

Growth in the Seniors population in Asia Pacific and other emerging markets is commercially appealing

Rising median age confirms the aging of society

Rising life expectancy, declining mortality rate and decreasing fertility rate are the main contributors

The number of Seniors and their market potential cannot be ignored

Key takeouts and implications: the world population is getting older

TREND: The Senior population grouping consists of several different sub-cohorts

The US: differences among the GI generation, silent generation and baby boomers need to be recognized

Baby boomers entering the 50-plus cohort could bring fundamental change to how 'aging' is defined

Japan: the dankai generation are re-defining the meaning of otona (adult)

Beyond demographic groups: understanding where the generations are from is the key to communication

Key takeouts and implications: consumers in the 50-plus cohort are not all the same

TREND: Seniors' financial status heavily influences their purchasing behavior

Seniors are well attuned to the premiumization philosophy of 'less but better'

Aging population and the impact on wealth: grow old and rich, or old and poor?

The financial status of the 50-plus cohort is affected by their family stage

The recessionary environment is a cause for concern among the 50-plus population

The housing market downturn is problematic for Seniors

Seniors have cut the frequency with which they trade up in food and drinks

The alcoholic drinks market has seen little premiumization in 2008 with Seniors greatly affected

Seniors' up-trading is reasonably robust in personal care categories

Seniors may change certain aspects of their lifestyles less than younger adults in the current economic environment

Key takeouts and implications: the purchasing power of the 50-plus age cohort is varied

TREND: Attitudes to alcohol are susceptible to change with age

Many Seniors strive to ensure that they do not drink too much alcohol

The majority of Seniors are happy with the amount of alcohol they consume

Particular health concerns rise with age, influencing drinking behavior

Bone fractures and osteoporosis are of more concern to Seniors than younger age groups

A wide variety of health benefits have been ascribed to moderate alcohol consumption

Health considerations are not a major motivator in Seniors' moderation of alcohol consumption

Seniors are more likely than some age groups to abstain completely from alcohol consumption

Seniors seek small indulgences to assist in escapism from everyday life

Seniors are more concerned about enjoying small indulgences in 2008 when compared to 2006

Factors influencing Seniors' choice of alcoholic beverages show some subtle differences to younger consumers

Seniors are less likely than younger consumers to let health implications influence their choice of alcoholic drinks

Key takeouts and implications: Seniors' attitudes towards alcohol are noticeably different to the prevalent trends among younger age groups

TREND: Inhibitors to alcohol consumption are of greater concern to Seniors than younger consumers

Seniors are more concerned about the amount of money they spend on alcohol

The majority of Seniors drink more regularly at home rather than in on-trade establishments

On-trade smoking bans evoke polarized feelings in Seniors

Negative health implications are more prevalent in Seniors than in younger age groups

Potential weight gain is of more concern to Seniors than younger age cohorts when drinking alcohol

Key takeouts and implications: concern over inhibiting factors is high among many Seniors

INSIGHT: The beer, cider & FABs category does not dominate among Seniors

Seniors are less likely to drink beer than younger age groups

In most countries, Seniors account for a relatively small share of the beer market

The Japanese beer market is reliant on Seniors for a high share of sales

Beer drinking is not a regular occurrence among the majority of Seniors

Beer is most popular with Seniors in an on-trade environment, when not eating

Some studies suggest that beer can be as healthy as wine when consumed in moderation

Key takeouts and implications: beer has a strong following among Seniors, but is not dominant

INSIGHT: Wine is a popular drink among Seniors

Seniors account for the largest share of market value in the wine market in many countries

Widely reported health benefits contribute to making wine a popular drink with some Seniors

Wine is often seen as an ideal accompaniment to food

Key takeouts and implications: wine is already the most popular alcoholic beverage among Seniors

INSIGHT: The spirits category is heavily reliant on Seniors

In many of the featured countries, Seniors account for the largest share of the spirits market by age

Spirits are enjoyed as an occasional indulgence by Seniors

Key takeouts and implications: Seniors only drink spirits occasionally, but account for the largest share of this market sector

ACTION POINTS

ACTION: Make older consumers a core target audience for value growth in the off-trade

Take advantage of the variety of the off-trade and its value-for-money credentials

The on-trade can also benefit from attracting more Seniors

ACTION: Pursue opportunities in the provision of 'better-for-you' alcoholic drinks to Seniors

Use 'better-for-you' innovation as an opportunity to attract Senior drinkers to the beer and wine categories

ACTION: Consider introducing products and variants that appeal to Seniors

Learn from the efforts of alternative CPG segments in targeting Seniors

Be realistic in promotional efforts targeted at seniors on a category-by-category basis

ACTION: Actively market to Seniors without alienating younger age cohorts

'Ageless marketing' is a concept that can be used to create universal appeal for a product

Brand heritage and tradition can be important to some Seniors

Appeal to values that are important to Seniors

Avoid alienating younger demographics

ACTION: Play the long-game in targeting emerging market opportunities

APPENDIX

Definitions

Methodology

Further reading and references

Ask the analyst

Datamonitor consulting

Disclaimer

List of Tables

Table 1: Senior population (m) by country, US & Europe, 2002-2012

Table 2: Senior population (m) by country, Asia Pacific and emerging markets, 2002-2012

Table 3: Median age of world population across countries, 2002-2012

Table 4: Life expectancy, mortality rate and fertility rate across 18 countries in Europe, the Americas and Asia Pacific, 1990-2006

Table 5: Consumer survey: the level of attention given to 'ensuring you do not drink too much alcohol in general', by age, in 15 countries across Europe, Asia Pacific, South America and the US, 2008

Table 6: Consumer survey: the extent to which consumers had moderated their alcohol consumption in the past six months (2008), in 15 countries across Europe, Asia Pacific, South America and the US, by age

Table 7: Consumer survey: the degree of attention respondents pay to their own heart health, by age, in 15 countries across Europe, Asia Pacific, South America and the US, 2008

Table 8: Consumer survey: the amount of attention given by respondents to bone health, by age, in 15 countries across Europe, Asia Pacific, South America and the US, 2008

Table 9: Consumer survey: the extent to which respondents agree that drinking alcohol in moderation is good for health, by age, in 15 countries across Europe, Asia Pacific, South America and the US, 2008

Table 10: The percentage of consumers abstaining from alcohol consumption by age range, in 15 countries across Europe, Asia Pacific, South America and the US, 2008

Table 11: Consumer survey: the propensity of consumers to change the frequency with which they enjoy small indulgences to escape the pressures of everyday life, in 15 countries across Europe, Asia Pacific, South America and the US

Table 12: Consumer survey: the extent to which consumers have altered their choice of alcoholic drinks in the last six months on health considerations (2008), by age, in 15 countries across Europe, Asia Pacific and the US

Table 13: Consumer survey: the amount of attention given by respondents to the amount of money spent on alcohol, by age, in 15 countries across Europe, Asia Pacific, South America and the US, 2008

Table 14: Consumer survey: the amount of attention given by respondents to the long-term health implications of drinking too much alcohol, by age, in 15 countries across Europe, Asia Pacific, South America and the US, 2008

Table 15: Consumer survey: the amount of attention given by respondents to potential weight gain from drinking alcohol, by age, in 15 countries across Europe, Asia Pacific, South America and the US, 2008

Table 16: The market value of the beer, cider and FABs category, by age, in 19 countries across Europe, Asia Pacific, South America and the US, 2007

Table 17: Consumer survey: the frequency with which consumers drink beer, by age, in 15 countries across Europe, Asia Pacific, South America and the US, 2008

Table 18: Share (%) of value sales within the wine category, by age, in 19 countries across Europe, Asia Pacific, South America and the US, 2007

Table 19: Consumer survey: the extent to which consumers had chosen alcohol based on its compatibility with food in the last six months (2008), by age, in 15 countries across Europe, Asia Pacific, South America and the US

Table 20: The market value of the spirits category, by age, in 19 countries across Europe, Asia Pacific, South America and the US, 2007

Table 21: Consumer survey: the frequency with which consumers drink spirits, by age, in 15 countries across Europe, Asia Pacific, South America and the US, 2008

List of Figures

Figure 1: A number of factors are responsible for the attitudes of Seniors towards alcohol

Figure 2: Baby boomers' lack of technophobia has contributed to the success of home entertainment technologies

Figure 3: Apple's iPod is also popular among baby boomers

Figure 4: Media, including websites and magazines, have turned their attention to the dankai generation and senior population in Japan

Figure 5: Mortgage affordability and smaller subsequent generations are now affecting Seniors

Figure 6: Seniors have traded up less than Young Adults in 2008

Figure 7: Seniors have been particularly slow to trade up in the on-trade in 2008

Figure 8: All consumers, including Seniors, have been keener to trade up when drinking at home in 2008

Figure 9: Personal care has been one of the markets that has most commonly experienced up-trading in 2008, but Seniors have lagged behind

Figure 10: Seniors felt less concerned by economic downturn in the first half of 2008

Figure 11: Seniors are looking to enjoy more small indulgences in 2008 compared to 2006

Figure 12: Factors influencing all consumers' choice of alcoholic beverages

Figure 13: Factors influencing Seniors' choice of alcoholic beverages show some subtle differences

Figure 14: Seniors are less likely to drink regularly in the on-trade compared to other age groups

Figure 15: Seniors are slightly more likely than average to enjoy alcoholic drinks at home

Figure 16: Beer, cider & FABs accounts for over half of market value when looking at all 19 featured countries across Europe, Asia Pacific and the Americas

Figure 17: The beer, cider and FABs category is not dominant among Seniors (50+ years old)

Figure 18: Case study: beer brands in Japan have been able to introduce some products to the market that have proved popular with Seniors

Figure 19: Beer is substantially more popular than any other drink with Seniors when visiting the on-trade but not eating

Figure 20: Wine is the most popular category among Seniors in terms of market value

Figure 21: Seniors drink wine more frequently when compared to the average consumer

Figure 22: Spirits is the least valuable category in Seniors' alcoholic drinks, but still accounts for almost one third of market value among this demographic

Figure 23: Seniors account for the biggest share of the spirits market by age

Figure 24: Better-for-you innovation opportunities exist outside of the beer category

Figure 25: Campbell's V8 juice brand has made an attempt to incorporate Seniors in its advertising campaigns

Figure 26: Brown-Forman's Jack Daniels brand has successfully appealed to Seniors through heritage and tradition, avoiding the alienation of Young Adults and Early Mid-Lifers

Abstract

• Detailed insights and analysis documenting the rise in the Senior population and how this differs on a regional basis
• In-depth and comprehensive quantitative and qualitative data covering the changing make up of populations, their attitudes and behaviors
• Detailed insights and analysis on the factors influencing Seniors' behavior in the field of alcoholic drinks
• 19 countries covered including France, Germany, Italy, Netherlands, Spain, Sweden, UK, US, Russia, Australia, Japan, South Korea, China, India, Brazil

• Gain an understanding of Seniors' specific preferences in the field of alcoholic drinks
• Use the latest evidence based insights to launch/ reposition products so that they are positioned to capture the significant spending power of Seniors
• Access a compelling blend of quantitative and qualitative data illustrating consumer attitudes and market developments

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