The 60+ market in developed countries is forecast to grow by a third by 2030, from 164 million to 222 million, according to a recent report by global management consultants McKinsey. This group is expected to generate 51% of urban growth ($4.4 trillion) in developed countries in this period, due to their growth in numbers and their higher per capita consumption than any other demographic group.
They are (and are expected to continue) spending on a wide range of goods and services, but health-care was highlighted by McKinsey as a major growth category for this group. Health-care currently accounts for 12% of their household expenditure and is expected to account for 34% of their overall consumption growth. This means that health-care spending by those aged 60 and older will grow by $1.4 trillion in the period to 2030.
These consumers spend substantially more on health-care than other demographic groups, which is not surprising, but the sharp increase in these costs in the higher-end of the demographic range may be an eye-opener to some. On average in developed countries a 30-year-old consumer spends $3,000 on health-care, compared to $8,200 for a 60-year-old and $35,000 for a 90-year-old.
Products and service providers in the health category have the opportunity to capitalise on this incredible expected future growth. The 60+market are actively searching for information about health-related matters online; 57% of baby boomers have searched online for health information according to OHO Interactive.
However, brands may need to adjust their marketing strategies to effectively target this group. The 60+ market do not want a sales pitch. They are more comfortable with just being given the information they require to make the most appropriate decision.
Advertising, imagery and language should be chosen carefully to reflect boomers own self-image. Boomers see themselves as healthy and active and so want to see products and services advertised to them in a way that makes them feel capable and driven.
YourLifeChoices has a dedicated Health section that covers the health and wellbeing topics that matter most to the over 60s market. It includes research, resources, news and feature articles on areas such as health checks, exercising safely, health insurance and improving your memory. Advertisers can sponsor this section to position their brand alongside relevant and well trusted content. Previous brands that have enjoyed successful campaigns using YourLifeChoices’ Health section include Apia, Hearing Life and Arborvitae. Contact us to find out more about the targeting opportunities available with YourLifeChoices.
Sources: Urban World: The Global Consumers to Watch. April 2016. McKinsey Global Institute and OHO’s Marketing Healthcare to Baby Boomers.