IRI: Older consumers are ‘golden opportunity’ for CPG companies
CHICAGO — To help consumer packaged goods marketers maximize growth opportunities in the growing baby boomer/senior market, the latest IRI Times and Trends report, "Aging America: Carving Out Growth in Mature Markets," takes a closer look at the shopping and consumption habits of older consumers and how they shift throughout the golden years. The findings: A “golden opportunity.”
Accounting for more than 50% of CPG spending, the baby boomer/senior market spent more than $200 billion across shopping channels in the last year alone. And, with the number of Americans ages 65 years and older set to double during the next 25 years, this spending power will continue to grow.
“By 2020, annual CPG spending by boomers and seniors will surpass $230 billion,” said Susan Viamari, editor of Thought Leadership, IRI. “Healthcare-related spending represents a significant share of overall CPG spending for mature shoppers, so it is crucial for CPG marketers to focus on proactive wellness and disease state management to activate these shoppers. With this type of spending on the table, even a fraction of one share point can easily translate into hundreds of millions of dollars.”
Opportunities span the aisles
It’s no surprise that health and wellness are important to boomers and seniors. However, this doesn’t mean that they are only purchasing prescription medications and shopping for the typical healthcare products. Like all consumers, mature consumers are investing in healthier living today to maximize long-term healthcare expenditures. As a result, “healthier for you” has emerged as a significant opportunity across CPG aisles.
IRI’s latest New Product Pacesetters study found that these products are not limited to the healthcare aisles. In fact, the top-selling food launch for 2013 was Dannon Light & Fit Greek yogurt, a yogurt that has twice the protein of traditional yogurt, with only 80 calories. And, among non-foods, L’Oréal’s Advanced Haircare, a line of hair care products that makes hair more beautiful by enhancing hair health, took the top spot.
Retailers are innovating to serve this market, too. Walgreens, for instance, recently partnered with GlaxoSmithKline to launch “Sponsorship to Quit,” a free online smoking cessation program.
Going forward, retailers and manufacturers must continue to look across the store for opportunities to support and advance consumers’ wellness-related efforts, according to IRI.
Activate shoppers with educational programs
Consumers are embracing proactive self-care because it’s less costly to maintain good health today than it is to face chronic disease tomorrow. Aging consumers are investing disproportionately in a wide range of preventive care and simple healthcare solutions. Sales of products — such as gastrointestinal liquid, home healthcare/kits, vitamins and internal analgesics — are showing exceptional growth among the mature marketplace.
To protect and grow share in these related categories, marketers must not only understand the broad range of conditions that are prevalent and/or top-of-mind among older consumers, but they also must educate consumers on the ingredients and products that can help them prevent and manage these diseases, according IRI.
“It’s important to remember that mature consumers want to achieve and maintain wellness, but they are not interested in the latest fad,”Viamari said. “When you have more than 9,500 new brands hitting retail shelves each year that are touting new ingredients and benefits, it can be overwhelming. That’s why clear communication of product benefits, product uses and value is absolutely essential with these shoppers.”
Engage with shoppers
Older consumers still rely heavily on such traditional media as circulars, coupons from home and signs or displays in stores when making brand decisions. However, marketers should not rule out digital media. More than 27 million people over the age of 55 years are engaged in social networking, and nearly 71% of boomers and 59% of seniors visit social networking sites on a daily basis.
To reach mature consumers effectively, marketers must leverage traditional media and supplement with new media programs that are tailored to target consumers’ place on the technology adoption curve.
“There’s no question that the mature market is poised for significant growth,” Viamari said. “The trick for marketers is to get a good grasp on the aspirations, challenges and attitudes that mark this unique and mature marketplace.”
Crest + Oral-B Pro-Health, Dr. Travis Stork partner to raise oral health awareness
CINCINNATI — Partnering with Crest + Oral-B Pro-Health, Dr. Travis Stork, Emmy-nominated TV host and emergency medicine physician, will appear at various events throughout the United States to speak with consumers about the importance of oral health.
Consumers will next have the opportunity to mingle with Stork when Crest Pro-Health sponsors Shape magazine’s Diva Dash in Charlotte, N.C., on June 21. Alongside a women’s-only 5K obstacle and adventure run, Stork will be on hand in the ‘Shape Escape Zone’ to talk about how oral health is connected to overall health and to introduce the new Crest Pro-Health Tartar Protection Rinse.
Stork will share a variety of tips with consumers at the Shape Diva Dash about oral health and overall health, including:
- Small Steps Can Lead to Big Changes: Small changes can make a big impact on one’s health. Making a healthy swap like fruit-infused seltzer water in place of soda or taking a 30-minute walk every day will help improve one’s health, one step at a time;
- Enjoy Being Active: Finding an activity you enjoy is key to incorporating regular physical fitness into your life. Being active shouldn’t feel like work, so choose something you enjoy; and
- Clean Up Your Oral Care: Investing in oral care products that will help protect your mouth against tartar build-up is important and Crest Pro-Health Tartar Protection Rinse provides protection against tartar build-up and cavities.
Crest Pro-Health Tartar Protection Rinse features fluoride to prevent cavities, while the pyrophosphate helps to reduce tartar formation. Tartar is a hardened plaque substance that cannot be brushed away and forms when the minerals from saliva deposit and harden within plaque. Crest Pro-Health Tartar Protection Rinse works to prevent this crystallization process by disrupting the linking of calcium and phosphates. By helping to prevent the organization of minerals, tartar growth sites are prevented. Not only is one’s mouth protected against tartar build-up, Crest Pro-Health Tartar Protection Rinse also freshens breath, fights unwanted surface stains and strengthens weakened enamel, the manufacturer stated. The new Crest Pro-Health Tartar Protection Rinse has a suggested retail price of $5.49.
Coppertone kicks off second year of ‘Making the Sunscreen Grade’ program
WHITEHOUSE STATION, N.J. — Merck Consumer Care, the makers of Coppertone, has kicked off its second year of the “Making the Sunscreen Grade” program to help parents teach their children sun-smart behaviors.
“Although my patients prioritize sun protection for their kids, many of them still don’t protect themselves. Being smart about sun protection for their own skin is a critical example to set,” said Ana M. Duarte, division director of dermatology at Miami Children’s Hospital and consultant to Coppertone. “This year’s ‘Making the Sunscreen Grade’ program has a very important message: children’s healthy sun habits begin at home with their parents.”
The program this year sends a sun-smart message to parents reminding them to encourage healthy behaviors in their children early on. As the most powerful role models for their kids, parents can impart lasting sun protection lessons that their children can take with them as they board the bus to school, join their teammates on the field, or spend the day in summer camp. According to results of an Australian survey, parents who used sunscreen and additional forms of sun protection while outdoors with their children increased the odds of their children practicing these behaviors.
With summer beckoning, Coppertone has launched its new ClearlySheer sunscreen line, which offers formulas that are fresh and lightweight, perfect for wearing under makeup as it leaves barely a trace on the skin for everyday sun protection during family activities like picnicing or spending a day at the lake. Coppertone Sport AccuSpray is a good option for activities like family bike rides and kickball, offering parents a targeted, continuous spray they can control when applying sunscreen.