Aging Population - Consequences on Consumer Goods Industry

1 Introduction Longevity and falling birth rates will bring new challenges and opportunities for societies and companies all over the world. While the lifespan will rise and the share of older age cohort will increase, societies and companies must take actions to prepare for these changes to be able to survive with the increasing liabilities caused by older employees. Companies must also scrutinize their marketing strategies, so that they will be ready for the new powerful consumer generation, the seniors. The changing demographics will have a major impact on the consumption patterns as the world`s population ages. For example, the age cohort people older than 65 will double to 1 billion over the next 20 years (United Nations†¦show more content†¦One of the greatest possibilities can be found from safety issues, how to make home even safer place to live for the elderly. Fast moving consumer goods companies should also take in to consideration the coming shift in demographics. For example cosmetic companies should develop products targeted at aged consumers. Until now the only cosmetic products targeted to more mature audience are mainly skin care. There can be seen a lot of possibilities as the consumers have been using cosmetics all their lives. Also the food industry can be predicted to benefit if they find a way of promoting groceries which the elderly see beneficial for themselves. As stated in the report by McKinsey Company (Georges Desvaux 2012), the wealth and consumpt ion is increasingly concentrating among the aging population. Combined to their new needs and their value consciousness, this will have significant implications for business. The distribution of both economic growth and consumer spending is expected to move toward the goods and services most popular with elderly people. It is expected that the consumers over 50 will account for more than half of increased spending on consumer electronics and almost three-quarters of house wares. 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