Times & Trends

BABY BOOMERS 2008: ONE SIZE DOES NOT FIT ALL EXECUTIVE OVERVIEW

NOVEMBER 2008

IRI's Times & Trends highlights new developments and critical events across all major CPG categories and channels, providing powerful benchmarking data to help guide your strategic decisions. This edition of Times & Trends underscores the importance of micro-targeting to effectively serve target consumer groups, leveraging the massive Baby Boomer generation as a case study. A free summary is also accessible via the GMA website at www.gmaonline.org.

INTRODUCTION

The Baby Boom generation is long-known to be a trend-setting group. For the packaged goods industry, the impact of this generation will be profound.

Sheer size plus an estimated $2 trillion in annual spending power makes the Baby Boom generation the largest and most influential consumer segment the CPG industry has ever served.

In order to serve this group effectively, though, CPG marketers must be on their toes. Despite the fact that Boomers have shared many life experiences, the group prides itself on individuality, and, as a whole, is really a diverse population.

This report provides insight into current and emerging trends within the Baby Boom marketplace that will enable manufacturers and retailers to develop and execute strategies that align with overall corporate goals while simultaneously addressing the rapidly changing needs of the largest and most powerful consumer group the industry has ever served.

KEY FINDINGS

»Boomers’ pursuit of vitality and longevity has had, and will continue to have, a significant impact on CPG trends. Growth across healthcare, skin care, and food and beverage categories will be shaped by the diverse and changing needs of Baby Boom shoppers.

»Boomers’ spending priorities shift over time, with healthcare escalating quickly over the age of 50, and continuing to shift with age. Purchase patterns within key healthcare categories will be reflective of these changes.

Innovative educational programs vis-à-vis health and wellness will become a critical tool within CPG marketing arsenals. Drug and supercenter retailers have established innovative educational programs vis-à-vis health and wellness aimed at building trust and loyalty among senior shoppers; as Boomers age, the size of the country’s senior population will explode

»Highly targeted private label strategies must be leveraged to effectively address spending nuances between and within age cohorts. Like many Americans, Boomers have been hard-hit by economic turmoil. Particularly in a down economy, private label is well-positioned to serve consumers’ need for value.