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According to the World Population Prospects 2022 released by the United Nations in July this year, by 2050, the number of people aged 65 or over in the world will be more than double that of children under the age of 5, and the global average life expectancy will increase to about 77.2 years. At least before the end of this century, the trend of aging and low birthrate is doomed to be irreversible.
The global population is living longer, with residents of Monaco, Hong Kong, Macau and Japan expected to live longer than 85 years in 2021, becoming the longevity champions, with Singapore, Switzerland and South Korea not far behind. Longevity will bring many effects and form a longevity economy, which is a phenomenon that no enterprise can and should not ignore.
Rapidly expanding group 65+
While the "longevity economy" broadly refers to all consumers aged 50 and over, the over-65 group (often considered the elderly group) is projected to grow the fastest, growing by 75% between 2021-2040.
In developed countries, in 2021, the 65+ group will be the main members of the highest social class (first and second class) (17% of the total), their income is more than 150% of the average total income, and they will benefit from accumulated Wealth, better social security and multiple sources of income, and that number will grow by 23% by 2040. In particular, these consumers typically already own their own homes and are less vulnerable to economic turbulence such as changes in interest rates.
At the same time, compared with the previous generation who have experienced war and turmoil, this group of post-war baby boomers (Baby Boomers, born 1946-1964) who have already entered or are about to enter 65+, born in Chengping period, are rich and willing to pay for better Products and services pay higher unit prices, and hypermarket-style buy-one-get-one may not be attractive.
On the other hand, it is important to note that the purchasing power of seniors in emerging and developing markets remains low (8% of first and second social classes in 2021 and 13% in 2040).
Source: Euromonitor International from national statistics/UN
For seniors, have you updated your thoughts ?
According to The Longevity Economy by Joseph F. Coughlin, founder and director of the MIT AgeLab, our conception of old age was established a century ago in the mid-to-late 19th century of. In the past, it was thought that the way the elderly maintained their health was rest, the elderly consumer, not the producer.
But now what we're looking at is that living longer may mean working longer hours, or learning and self-improvement throughout a lifetime, not just receiving service, but contributing to society as well.
In recent years, foreign media such as "Colombia News Network" and the British "Daily Telegraph" have redrawn the appearance of the mature generation: 60 years old is the new 40 years old (sixties is the new forties).
In any case, there is no doubt that the elderly will become the mainstream of the population. At the same time, an aging society will also create a new multi-trillion-dollar consumer market, because the elderly not only want to be cared for, but also look forward to fulfilling some aspirations that seemed impossible to the elderly in the past.
While health remains a top priority for silver-haired consumers, other needs and expectations of the aging population are also increasingly diverse. Products designed for the elderly should go beyond vitamins, walkers and medication reminders.
1. Comprehensive attention to physical and mental health
Despite the increase in longevity, people live significantly less healthy lives than they live, with a global gap of about nine years in 2021. How to live a long and healthy life? Living standards and modern medicine play a vital role.
However, the desire to maintain vitality and the ability to live alone is what drives the demand for medical products and healthcare services among the elderly.
According to Euromonitor's 2022 "Voice of the Consumer: Health and Nutrition Survey", 60% of 60+ respondents globally believe that health is primarily defined as a healthy immune system and the absence of disease, with an emphasis on prevention The importance of sexual medicine.
Interestingly, more than 65% of silver-haired people said that the definition of health is also mental health. This can be confirmed by the growing popularity of health APPs targeting the elderly and combining the concept of physical and mental health, such as Senior Fitness (Senior Fitness), Tai Chi Fit Over 50 (50+ Tai Chi Health) and so on.
Source: Euromonitor “Voice of the Consumer: Lifestyle Survey”, March-April 2021
2. The number of elderly people is increasing, but not enough attention
Pew Research, a well-known research institute, pointed out that people over the age of 50-64 in the United States are adopting technology rapidly. In 2000, less than half of the people used the Internet.
Becoming a surfer is a major milestone for many seniors. Three years after the epidemic, many people have been forced to go online, and silver-haired people have become the fastest group to accept technology. The global population of older adults who are not connected to the Internet continues to decline. In the 2021 Euromonitor digital survey, only 1.5% of older respondents globally said they were not online.
Source: Euromonitor “Voice of the Consumer: Health and Nutrition Survey”, January-February 2022
In general, older adults are becoming more comfortable with the Internet. In 2021, 82% of 60+ consumers are already online every week. But despite the increase, older people in the media are still marginalized. Korean pop culture is an example of positive inclusion. In recent years, South Korean entertainment companies have launched shows such as "Grandpa Over Flowers", "Girls" and "Squid Game", which have brought fire to older stars. Shows and other entertainment services that target older consumers are more likely to appeal to older groups and increase their sense of belonging.
In addition, among the elderly, there are fewer men than women, and women are also the main decision makers of household purchases and consumption . Technicians and other product designers should consider the female user perception first when designing products for the elderly.
3. Choose self-actualization over retirement
For older adults, living longer also means working longer. According to Euromonitor's 2022 "Voice of the Consumer: Lifestyle Survey", only 16% of respondents globally plan to retire early, a figure that has changed little over the past five years.
Rather than retire, more seniors are choosing to restart their lives and redistribute their time. Keep your career, but reduce your hours to start a new career, learn a skill or two, or develop a new hobby to maintain your professional status. In the UK, for example, a number of organisations are supporting old age entrepreneurship activities to help older people live more meaningful lives.
Although the elderly population is one of the largest age groups, many B2C companies do not yet have a strategy for targeting these consumers.
Traditionally, health care is a major issue as we age, but now the needs of silver-haired people are expanding, and the real business opportunity in the future lies in helping them better communicate with the world around them and realize their importance to society, so , there are more dynamic and meaningful 65+ markets to be developed.