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A.T. Kearney October 2015 1
The Institute of Food, Medicine and Nutrition
David Donnan
October 2015
The Senior Consumer
A.T. Kearney October 2015 2
We are facing an “Agequake”
THE “SUPER-AGING” OVERHANG
(Countries with >65 segments over 20%)
GERMANY
GREECE
ITALY
JAPAN
2014 BULGARIA
CROATIA
FINLAND
FRANCE
GERMANY
GREECE ITALY
JAPAN MALTA
NETHERLANDS
PORTUGAL
SLOVENIA
SWEDEN
2020
34 COUNTRIES
INCLUDING:
JAPAN (30.7) GERMANY (28.2)
ITALY (26.8) KOREA (23.4)
FRANCE (23.2) SWITZ (21.9)
UK (21.7) US (20.1)
2030
A.T. Kearney October 2015 3
By 2025, the 100+ population will increase to 119k, up 65% from 2015,
making it the fastest growing age cohort
A.T. Kearney October 2015 4
By 2017, the 50+ population is expected to spend close
to 50% of CPG dollars; however <5% of advertising is aimed towards the group
A.T. Kearney October 2015 5
29% of households 55+ have no Defined Benefit
Plan or retirement savings (e.g. 401k, IRA)
A.T. Kearney October 2015 6
The A.T. Kearney Global Maturing Consumer Study
1. Benelux, Denmark, France, Germany, Italy, Norway, Spain, U.K., Romania and Turkey
Source: Euromonitor, A.T. Kearney analysis
They have distinct characteristics
They buy different product categories and enjoy shopping more!
They shop often, in smaller stores and closer to home
They are more loyal and more demanding on quality
They watch for promotions… but do not find them adapted
Their priorities evolve as they age
A.T. Kearney October 2015 7
More than 3,000 consumers from seven countries revealed common themes
When I buy shampoo, there is a big logo of the company and not much else on it.
You need glasses to see what the product actually is, and in the bathroom
you often don’t wear glasses.
-Gerhard, 68, Germany
I do think they need some seating as it is tiring to push a trolley round. Perhaps a coffee bar, too, not
necessarily to socialize but to relax and have a coffee before catching the bus back
-Enid, 77, England
I am not as tall as I used to be and I do feel it when I cannot reach a product on the shelf. I always wish someone would help me, but it is seldom the case”
- Denise, 82, France
A.T. Kearney October 2015 8
Older shoppers think they are not adequately served by marketers, retailers, or manufacturers
Shopping is difficult due to the inability to navigate large shops with hard-to-reach products on shelves
Product packaging poses a challenge to opening while labels, prices and directions are hard to read
A.T. Kearney October 2015 9
Mature Consumers buy different product categories
1. Average share of basket compositions in the following countries: Brazil, Bulgaria, China, Denmark, Finland, France, Germany, India, Indonesia, Japan, Mexico, Netherlands, Norway, Romania, Russia, South Africa, Spain, Sweden, Turkey, U.K., U.S.
Source: Euromonitor, A.T. Kearney analysis
Where Mature Consumers spend less of their income1
5 %
14 %
4 %
11 %
Clothing Transportation
60+ 60-
Where Mature Consumers spend more of their
income1
4 %
18 %
7 %
20 %
Healthcare Food and Beverages
A.T. Kearney October 2015 10
Often they enjoy shopping more
1. Based on a U.K. study
Source: A.T. Kearney Global Maturing Consumer Study, University of Ulster: Age associated changes in older consumers retail behaviour
They shop more in the morning because :
Shopping is often on top of their daily priorities
Shopping is the occasion to go out, better do it in the morning when they are not tired yet 80+
73 %
70-79
68 %
60-69
51 %
A.T. Kearney October 2015 11
And they prefer to shop in smaller stores
Source: A.T. Kearney Global Maturing Consumer Study
Preference for smaller stores
70-79
39 %
80+
25 %
60-69
19 %
A.T. Kearney October 2015 12
They value proximity
1. Share of respondents ranking “proximity” as one of their two top criteria to decide where to shop
Source: A.T. Kearney Global Maturing Consumer Study
They walk rather than drive
0 %
20 %
40 %
60 %
80 %
80+ [75-79] [70-74] [65-69] [60-64]
Driving car Walking
A.T. Kearney October 2015 13
Selling to the Mature Consumer
Affordability
Nutrition Assistance Programs
Drug Stores
Food and Nutrition Information
Food Shopping Location
Nutrition Resources
Nutrition while Eating Out
13
Source: AARP Foundation Food Insecurity Research
A.T. Kearney October 2015 14
But, Governments will be under stress
Increased length of pension costs
Increased length of healthcare costs
Nutritional based disease management
A.T. Kearney October 2015 15
Finding alternative models for outreach
Food to Consumer Food Preparation Food Sourcing
Ex: Leverage buying power to obtain cheaper prices
Ex: Ready-made baskets to reduce labor
cost
Ex: Food delivery that leverages the USPS
network
Emerging Innovations
A.T. Kearney October 2015 16
A new model for food re-distribution
Market Driven Models
Partnerships with distributors to provide food at cost to disadvantaged populations
Consolidation of buying power leveraging high demand from the growing 50+
Mutually beneficial partnerships; examples include AmazonFresh and USPS, Peapod and Stop & Shop, etc.
Traditional
Retail donations from farmers, grocery stores and other retailers
Industry donations from distributors, wholesale and other sources
Community food drives
Food purchased using monetary donations from grants, corporations, foundations and individuals
A.T. Kearney October 2015 17
The Institute of Food, Medicine and Nutrition
David Donnan
October 2015
The Senior Consumer
A.T. Kearney October 2015 18
A.T. Kearney is a global team of forward-thinking, collaborative partners that delivers immediate, meaningful results and long-term transformative advantage to clients.
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