In the ever-evolving world of consumer packaged goods (CPG) marketing, brands are constantly on the hunt for the next big thing. The current trend? Targeting the younger generations, specifically Gen Z and Millennials. While these demographics certainly hold potential, there’s an often overlooked, yet increasingly significant market segment that’s ripe for the picking: the older shopper.
The Current State of CPG Marketing
According to my experience, a staggering 95% of the CPG shopper marketing briefs I come across are laser-focused on Gen Z and Millennial audiences. Brands are investing heavily in digital marketing, social media campaigns, and influencer partnerships to capture the attention of these younger consumers.
However, this strategy, while of course often relevant, overlooks a crucial fact. By 2028, the 60+ age group will account for over one-third of the overall growth in grocery spending. This demographic shift presents a massive, untapped opportunity for CPG brands willing to pivot their marketing strategies.
The Rising Power of the 60+ Demographic and the older shopper
Over the next five years, the 60+ age group will be the fastest-growing demographic. This growth is fueled by a combination of factors, including increased life expectancy and the aging of the Baby Boomer generation.
Moreover, household composition is changing. With a decline in birth rates, there’s a significant increase in single-person households, many of which are headed by older individuals. This shift in household dynamics has profound implications for CPG brands, as it changes the types of products consumers need and the ways they shop.
The Wealth Factor
When it comes to purchasing power, the 60+ demographic is a force to be reckoned with. The majority of wealth is held by the 55+ age group, which accounts for a whopping 70% of the overall net worth. This wealth translates into significant spending power, particularly in the grocery sector.
Despite these compelling statistics, many CPG brands continue to target younger generations, missing out on the massive opportunities presented by the older demographic. This oversight is not only a missed opportunity but also a strategic misstep.
The Case for Targeting the Older Shopper
There are several compelling reasons for CPG brands to shift their focus towards older shoppers.
Firstly, older consumers have more disposable income and are often willing to pay a premium for quality products. They value convenience, quality, and customer service, and are less price-sensitive than younger consumers.
Secondly, older shoppers are brand loyal. Once they find a product they like, they’re likely to stick with it, providing a steady stream of revenue for brands that can win their loyalty.
Thirdly, older consumers are increasingly tech-savvy. They’re embracing online shopping and are active on social media, providing new avenues for brands to engage with them.
Adjusting Your Marketing Strategy
So, how can CPG brands adjust their marketing strategies to target older shoppers effectively?
- Understand their needs: Older consumers have different needs and preferences compared to younger shoppers. Brands need to invest in market research to understand these needs and tailor their products and marketing messages accordingly.
- Embrace digital marketing: While older consumers may not be as active on social media as younger generations, they’re increasingly embracing digital channels. Brands should leverage email marketing, SEO, and targeted online ads to reach this demographic.
- Prioritize customer service: Older consumers value excellent customer service. Brands should invest in training their staff, improving their customer service channels, and ensuring a seamless shopping experience.
- Promote health and wellness: Health and wellness are top priorities for older consumers. Brands that can position their products as healthy, natural, orbeneficial can capture the attention of this demographic.
The Future of CPG Marketing
The future of CPG marketing lies in recognizing and adapting to demographic shifts. As the population ages, brands that can effectively target older shoppers will be well-positioned to capture a significant share of the market.
Despite the compelling case for targeting older shoppers, many CPG brands continue to focus their efforts on younger generations. This strategy, while not entirely misguided, overlooks a significant and growing segment of the market.
In conclusion, it’s time for CPG brands to rethink their marketing strategies. By focusing solely on younger consumers, they’re missing out on the massive potential of the older demographic. The 60+ age group is growing rapidly, has significant spending power, and is increasingly embracing digital channels. Brands that can effectively target this demographic stand to reap substantial rewards.
So, as you plan your next marketing activation, keep this in mind: don’t forget to target older shoppers. They represent an untapped goldmine of opportunity, and those who recognize this early will be the ones who truly thrive in the evolving CPG landscape.
Remember, marketing is not about chasing trends; it’s about understanding consumers, meeting their needs, and building lasting relationships. And right now, there’s a significant opportunity to do just that with the older demographic. Don’t let this opportunity pass you by.