How retail brands can bring the latest foodservice trends

into the home

SAMPLE PAGES Reference Code: CS0613IS Publication Date: January 2015

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Contents

Executive summary

Introduction

Targeting consumers aged 55 and over will be crucial to food consumers’ profitability

• Senior citizens (those aged 55+ years and over) account for 19% of the population

• The proportion of consumers aged 55+ will continue to grow over the next decade as the trend for rising life

expectancy and declining birth rates continue

• The older generation is responsible for 23.3% of food consumption

• Older Consumers in the US ate the largest volume of food in 2013, over 17 billion kilograms

• The older generation’s largest share of the market is in Germany, where they are responsible for a third of food

consumption

Debunking the myth associated with an aging population

• As society continues to age, manufacturers need to adjust product portfolios and develop NPD to cater to aging

populations

• Senior citizens cannot be treated as one homogenous group and instead need to be broken down into two core

groups – active and dependant

• Active seniors are already consuming a wide variety of products and are satisfied with the range of products

available

• For dependant seniors, the choice of products to consume is often out of their hands and based on basic

survival such as ease of digestion and avoiding illnesses

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Contents

Disruptive NPD and age specific products are becoming increasingly unnecessary as differences between age

groups become increasingly blurred and age stereotypes outdated

• The aging population has been targeted in a number ways from overly fragile to extremely active

• Senior consumers are at a life-stage now where they feel happy and comfortable with their lifestyles

• Older consumers feel that they have more money, less responsibility and know what they want

• Seniors are aware of subtle differences to their lifestyle required because of their aging

• While being affluent, Older Consumers are careful about their spending

• Older Consumers are aware of lifestyle changes, however, they are not prepared to refrain from little treats

completely

• Healthy products should be launched for everyone as older consumers will avoid exclusive products

• Health food should be universal because the differences in consumer motivations do

not vary significantly between adult age groups

• Older consumers feel they are a liberal generation and have a significantly more hectic lifestyles than the

generations before them and do not want this to change

• Consumers aged 55 and over also tend to be very skeptical to media sensation and “magic bullets”

• While Older Consumers are concerned about economic changes and deteriorating health this only fuels the

desire to live for the moment

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Contents

The aging population of developed economies seeks convenient and indulgent options at justified prices

Indulgence is important for senior consumers

• Rather than be fearful of their age, senior consumers associate their age with wisdom and good taste –

something they want reflecting in the products they buy

• Senior consumers are also particularly interested in craftsmanship, locality and authenticity – but this is for

indulgence as opposed to safety or uncertainty

• When it comes to indulgence there is a focus on quality over quantity – something that is crucial when it comes

to product positioning

• How FMCG manufacturers should target indulgence-seeking older consumers in developed economies

A new found sense of freedom means seniors want to free up time spent on chores

• For empty nesters, a new sense of “freedom” is being found because their children have grown up and left the

parental home – meaning more spare time and money

• Older consumers are increasingly seeking out products that save time in the kitchen so that they can spend

time on more favourable activities

• More free time means Older Consumers have more time to experiment with new foods

• Senior consumers want “insperiences” so that they do not have to leave the house as much

• How FMCG manufacturers can target time-rich older consumers in developed economies

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Health is important to senior consumers – but it is more around making small changes than wholesale

changes

• Senior consumers take more self responsibility when it comes to their health

• Traceability and simplicity are paramount for NPD – seniors effectively adopt a “what it does on the tin”

mentality to new products

• The older generations checks food labels for the presence of “bad” ingredients.

• Senior consumers consider “reactive” products such as preventing osteoporosis are too late for them

• How FMCG manufacturers can target health-conscious consumers in developed economies

Value for money is everything for more discerning older consumers

• “Insperiences” offer better value for money on indulgent experiences

• Financial uncertainty causes the older generation to spend more carefully

• Senior consumers feel that they are educated, wise and better equipped to determine what offers genuine value

for money

• The liberal and experiential nature of consumers combined with the desire for value means lessened brand

loyalty among Older Consumers

• Across all age groups, the older generation is concerned about value for money and indulgence the most

• How FMCG manufacturers can target value-conscious consumers in developed economies

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The older generation of the developing economies can be targeted with value for money offering that enhance

their traditional values

Financial and life quality expectations are changing

• Different lifestyles and financial conditions of Older Consumers in developing economies lead to more

conservative consumption patterns

• Life expectancy is lower in developed economies, as is the prevalence of serious health problems

• The number of seniors in developing economies will grow significantly as these markets follow the pattern of an

aging society

Senior consumers are finding themselves at a tipping point between traditional and modern values

• Senior consumers in developing economies have different consumption patterns

• Senior consumers are at a tipping point where they want to stick to traditional values but also recognise the

benefits of “westernisation” in some areas of the food market

• Older consumers are being careful about spending

• NPD should focus on facilitating traditional cultures and values as opposed to encourage any significant change

in behavior

• Low incomes mean any attempts to encourage consumers to change their attitudes and behaviors can be

undermine by premium price points

• How to target culture-conscious consumers in developing economies

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Contents

Disease and health maintenance should be a core focus of product positioning

• Brands need to change senior consumers’ attitudes when it comes to health and disease maintenance

• There is more to be done on consumers’ education on food hygiene

• The older generation needs education on lifestyle diseases, such as osteoporosis.

• How brands can increase health-awareness among consumers in developing economies

Improved safety and convenience should also be positioned around helping facilitate the senior consumers’

lifestyles in their older age

• Social taboos and tradition mean that traditional roles in the home will always be adhered to amongst senior

consumers in developing economies

• NPD launched in developing economies should be focused more on helping facilitate cooking rather encourage

consumers to change their attitudes

• How to target conservative consumers in developing economies

Appendix

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Why buy this report? Manufacturers need to update outdated and stereotypical marketing practices in order to better target the growing number of older consumers

The older generation is often targeted wrongly by positioning them as having radically different need states

from other adults, when in reality they don’t. This report explains common mistakes in targeting and

positioning by explaining in detail this group’s most pressing motivations, such as the need for

convenience, indulgence, and the desire for value for money

1) Identify the motivators actually driving consumption behavior among those aged 55 and over

By contrast with stereotypes that the older generation is motivated mostly by health, the influence of health

is far less than other motivators, such as value for money, convenience, or indulgence.

3) Future-proof your strategy, by focusing on an age group that will soon account for over a

quarter of global food consumption

In addition to the main motivators for this generation, manufacturers should take into account cultural,

religious, and economical differences of the area they are targeting. These characteristics impact Older

Consumers’ affluence, diets, and consumption habits.

2) Develop inclusive products that meet key need states, instead of focusing on disruptive NPD

that actually fails to connect with the Older Consumers

When manufacturers consider consumers aged 55 and over to be overly fragile, they target them with

products of a palliative nature to alleviate the burdens of old age. However, this generation does not

suddenly start feeling old as they reach certain age, and they continue to be motivated by the same trends

as when they were younger. Therefore they do not connect with products that exclude them, and find

many products targeted at older consumers patronizing.

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The older generation’s largest share of the market is in Germany, where they are responsible for a third of food consumption

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Market volume share consumed by those aged 55 and over by country and sector, 2013

Sector Brazil China France Germany India Italy Russia Spain UK US Total

Bakery & Cereals XX.X% XX.X% XX.X% XX.X% XX.X% XX.X% XX.X% XX.X% XX.X% XX.X% XX.X%

Confectionery XX.X% XX.X% XX.X% XX.X% XX.X% XX.X% XX.X% XX.X% XX.X% XX.X% XX.X%

Dairy and Soy XX.X% XX.X% XX.X% XX.X% XX.X% XX.X% XX.X% XX.X% XX.X% XX.X% XX.X%

Fish & Seafood XX.X% XX.X% XX.X% XX.X% XX.X% XX.X% XX.X% XX.X% XX.X% XX.X% XX.X%

Ice Cream XX.X% XX.X% XX.X% XX.X% XX.X% XX.X% XX.X% XX.X% XX.X% XX.X% XX.X%

Meat XX.X% XX.X% XX.X% XX.X% XX.X% XX.X% XX.X% XX.X% XX.X% XX.X% XX.X%

Oils & Fats XX.X% XX.X% XX.X% XX.X% XX.X% XX.X% XX.X% XX.X% XX.X% XX.X% XX.X%

Pasta & Noodles XX.X% XX.X% XX.X% XX.X% XX.X% XX.X% XX.X% XX.X% XX.X% XX.X% XX.X%

Prepared Meals XX.X% XX.X% XX.X% XX.X% XX.X% XX.X% XX.X% XX.X% XX.X% XX.X% XX.X%

Savory & Deli Foods XX.X% XX.X% XX.X% XX.X% XX.X% XX.X% XX.X% XX.X% XX.X% XX.X% XX.X%

Savory Snacks XX.X% XX.X% XX.X% XX.X% XX.X% XX.X% XX.X% XX.X% XX.X% XX.X% XX.X%

Seasonings, Dressings &

Sauces XX.X% XX.X% XX.X% XX.X% XX.X% XX.X% XX.X% XX.X% XX.X% XX.X% XX.X%

Soup XX.X% XX.X% XX.X% XX.X% XX.X% XX.X% XX.X% XX.X% XX.X% XX.X% XX.X%

Syrups & Spreads XX.X% XX.X% XX.X% XX.X% XX.X% XX.X% XX.X% XX.X% XX.X% XX.X% XX.X%

Total XX.X% XX.X% XX.X% XX.X% XX.X% XX.X% XX.X% XX.X% XX.X% XX.X% XX.X%

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For empty nesters, a new sense of “freedom” is found because their children have grown up and left home – meaning they have more spare time and money

Empty nesters start a new chapter in their lives: they have more

free time and money to spend. They restart their careers, travel

more, turn to personal hobbies, and volunteer in the establishments

they feel connected with.

Spare time means that empty nesters have more time to

themselves, and if necessary, have time to research the product,

especially when it comes to premium-priced items. This means

they have time to compare not just a product’s price, but also

ingredients sourcing and manufacturing process, making them

more knowledgeable.

There is a perception, that due to a greater amount of spare time

and fewer social interactions, empty nesters want more social

interactions in shops, such as a chat with the sales assistants.

However, a Canadean survey from December 2014 shows that this

is only true for small outlets, such as the local corner shop, where

54% of those aged 55 and over in the UK prefer friendliness over

speed. When it comes to bigger stores, such as supermarkets and

hypermarkets, 60% of Older Consumers prefer speed over

friendliness, which is similar to the younger adult groups, with over

a half of consumers of all age groups prioritizing speed service.

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Older consumers are increasingly seeking out products that save time in the kitchen so that they can spend time on more favorable activities

Generally the older generation has more time, however, they want to make

the most of it, and seek items to help them to free time on chores such as

cooking to do more favorable activities. A number of consumers from this

generation don’t want to refrain from scratch cooking completely and will

look for products that help to speed up the process, such as pre-made

soup bases, sauces, or already chopped and portioned vegetables.

While processed meals are considered less healthy, prepared meals such

as minimally processed meat that still requires baking or roasting, but

saves time on meat preparation and marinating offer a time-health

compromise.

Products that are easy to open and store,

such as beans in a plastic pouch, also

offer additional convenience in the

kitchen, by saving time and effort of

opening the can, as well as ensuring

easier storage. Another example, is a

sprats can with a plastic lid rolled out by

Gamma-A, which is easier to open than

traditional metal sealed can. In addition,

the transparent lid allows consumers to

evaluate the product, which is an

important motivator for those aged 55 and

over.

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More free time means Older Consumers have more time to experiment with new foods

Generally, the older generation has more free time and are more open to

social experiences. They are willing to try new dishes when they go out, or

add a twist of novelty to their own recipes when cooking, such as adding

spice or other novel ingredients to the dish.

As taste buds become less sensitive with age, the older generation seeks

more flavorsome foods, such as those flavored with herbs and spices.

This audience has more time to research and experiment with their cooking,

and watch scratch-cooking inspiring programs and competitions. Extra time

gives them an opportunity to source and purchase ingredients and follow

complicated recipes, as well as to think about a twist they want to add to

their cooking. The social aspect of scratch-cooking means that consumers

are trying to impress their peers or family members and share the indulgent

experience over a conversation. This provides an opportunity for

manufacturers to market items for the older generation designed for

socializing.

In addition, their exposure to foreign foods has significantly increased, due

to media, travels, and immigration. For example, in autumn 2014, when

Canadean asked UK consumers what type of spicy food they prefer, 51% of

those aged 55 and over voted for Indian/Bangladeshi food, with Chinese

being the runner-up. Such exposure will lead to easier availability of

previously exotic ingredients, such as curry spices and shiitake mushrooms,

and the possibility to recreate restaurant experiences at home.

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How FMCG manufacturers can target time-rich older consumers in developed economies

Clear claims:

The older generation is highly

motivated to get the best

value for money. They have

more free time, and are

prepared to invest in

researching the product

attributes they associate with

added value, such as quality,

superior taste, or new

processing techniques that

preserve product’s freshness

for longer.

Experimentation:

Due to declining ability to

taste, the older generation

seeks stronger flavors, such

as foreign foods that offer

flavorsome experiences.

Convenient offerings, such as

meal kits that allow

consumers to prepare the

dish easily, as well as spices

and main food ingredients

that offer recipes with

ingredient lists, will appeal to

the older generation.

Convenience:

The desire for scratch-

cooking means the older

generation seeks items that

facilitate such cooking. For

example, products such as

pre-treated meats, or soup

ingredients, frozen vegetable

mixes enable consumers to

save the most laborious parts

of finding uncommon or

difficult to locate ingredients.

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Summary Methodology

MARKET DATA

• Method: Analyst triangulation of

consensus numbers based upon

comprehensive primary and desk

research as part of an international

research programme.

• Coverage:

• 50 Countries fully researched

• Category and segment breakdown

• 8 channels

• Value and Volume data

• Internationally comparable data

• 100% standardized definitions

CONSUMER DATA

• Method: Extensive consumption surveys

and consumer group tracking with strict

age and gender quotas to ensure

nationally-representative results.

• Coverage:

• 10 Countries

• 20 Consumer Trends

• 26 Consumer Groups

• Category breakdown

• Integrated market sizing at the

country and category level

This report is comprised of two data research programs

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