1. The over-55s - engaging an ageing population

2. Agenda The size of the over-55s market
What do they look for in food and drink?
Savvy shoppers, but brand loyal
Expect transparency
Perishability is an issue
How do their health attitudes affect their food and drink choices?
What are the implications of the Agelessness trend to the market?
Conclusion

3. Over-55s - the size of the market

4. A huge volume opportunity
Forecast population by age group, 2016
The number of over-55s will rise by 1.5 million to reach 19.3 million by 2016.
They’ll account for 30% of the population of 64.8 million in 2016.
Source: Office for National Statistics/GAD/Mintel

5. …and value Average household spend on food declines with age.
Average weekly household expenditure on food and drink by age of reference person, 2009
Average household spend on food declines with age.
Spend per person rises with age, to peak among the 65-74s.
Source: ONS, Family Spending 2009/Mintel

6. The rise of the smaller household
Household size profile of over-55 population, by age, 2010
Household size declines with age.
Implications for budgets and food expectations.
Base: adults aged 15+ Taken from the TGI survey of around 25,000 adults
Source: GB TGI, Kantar Media UK Ltd Q (Oct-Sep)/Mintel

7. Over-65s are confident in their finances
How consumers describe their financial situation, by age, July 2011
Over-65s are generally weathering the downturn well.
But even within this group, 31% are in ‘tight’ finances or worse.
Base: 2,000 internet users aged 16+
Source: GMI/Mintel

8. What do they look for in food and drink?

9. Savvy shoppers 69% “I buy the product offering best value for money”
35%
“Branded products usually offer better quality”
Savvy shoppers
Brands must prove they are worth spending on to make it to their shopping basket.

10. …but brand loyal Selected attitudes to brands, by age group, 2010
Base: adults aged 15+ Filtered by fieldwork period (October 2009-June 2010)
Taken from the TGI survey of around 25,000 adults
Source: GB TGI, Kantar Media UK Ltd Q (Jul-Jun)/Mintel

11. Transparency is in high demand
Important attributes in food and drink packaging , November 2010
Morrisons Fresh Ideas Thai Green Chicken Curry
Base: 1,000 internet users aged 16+
Source: Toluna/Mintel

12. …as is preserving food better
Important attributes in food and drink packaging , November 2010
Cadog Mature Aeddfed Welsh Cheddar
Base: 1,000 internet users aged 16+
Source: Toluna/Mintel

13. More potential for “easy-to-open”
61%
Share of over-55s who see “easy to open” as important
0.4%
Share of “easy-to-open” among UK food & drink launches in 2010.
Accessibility
Makes the product in very real terms more accessible and relevant to the seniors

14. British and local credentials resonate
Thinking about the food and drink you buy from a supermarket, how important are the following issues?
Base: 1,500 internet users aged 16+
Source: Toluna/Mintel

15. The over-55s and health

16. Healthy lifestyles Attitudes to health by age, August 2011
Health-awareness rises with age.
The over-55s are confident about how to stay healthy.
Source: Toluna/Mintel
Base: 1,500 internet users aged 16+

17. Healthy eating Attitudes to various health-related food issues
The over-55s use food actively to manage their health.
Minimising the negative impact and maximising the benefits.
Source: GB TGI, Kantar Media UK Ltd Q (Oct-Sep)/Mintel
Base: adults aged 15+

18. Health concerns Key health concerns over-55s have tried to address
Source: Toluna/Mintel
Base: 1,500 internet users aged 16+

19. More accessible functional foods
Rich Products Oatmeal Crunch Bread (US)
Kraft Live Active Light Cheese Slices (Australia)
Benecol Instant Blueberry Porridge (Finland)

20. Scepticism remains a key barrier
69%
“Some of the claims are exaggerated, eg cereals are good for the heart.”
79%
“Functional foods are overpriced.”
Scepticism
Need to combat the scepticism to unlock the demand.

21. Natural foods have strong appeal
63%
“I avoid buying foods with additives as much as possible.”
78%
“I trust the health-promoting benefits of natural foods, like fruit and vegetables, more than functional foods”
Good fit benefits
Strong potential for benefits building on natural qualities.

22. How does Agelessness affect the market?

23. Agelessness People don’t act their age.
While they are physically getting older, they don’t like to be told that they’re old.
Understanding what this age group looks for is key to focusing marketing on attributes which resonate, not age.

24. Retired for hire – need for energy
Work longer
Many over-65s will stay in the workforce because they want to, or have to.
Play longer
The older age groups are also staying increasingly active in their leisure time.
Need for fuel
Demand for attributes like vitality, energy and longevity in food and drink products targeting the seniors.

25. A new market for energy drinks?
US-based 5-Hour Energy is targeting the seniors.
Sales growth outperformed the energy shots sector (57% v. 41%) in 2010/11.
Opportunities for energy-stimulating ingredients to be marketed to the older demographic in the UK.
5-Hour Energy

26. Conclusion
The over-55s are a sizeable opportunity in both volume and value terms.
They like to see themselves as savvy shoppers and expect transparency.
Packaging can play a role in products becoming more relevant to them.
Their interest in health is a key differentiator – but they are often sceptical of functional claims.
The over-55s are ageless in their attitudes.
Questions?

27. Head of UK Food, Drink & Foodservice Research
Kiti Soininen
Head of UK Food, Drink & Foodservice Research
+44 (0)