What an aging population means for CPGs and grocery retail

The American population is getting older. As the Baby Boomer generation ages into retirement and Americans enjoy longer lifespans, the demographic makeup of the country is rapidly shifting towards an older population. By 2030, all Baby Boomers will be at least age 65. This unprecedented aging of America holds major implications for consumer packaged goods (CPG) companies and grocery retailers.

One major impact will be shifts in household dynamics that change shopping behaviors. For some older consumers, aging means smaller households as children grow up and couples face divorce or widowhood later in life. Our research shows that a single-person household spends 16% less per year than a two-person household (source 84.51° Stratum).

For others, aging brings larger households from multi-generational cohabitation. As younger relatives take on caregiving roles, their buying behaviors will influence household spending. 

Decline in trips

Retailers can also expect an aging population to make fewer shopping trips. As they get older and if their household size shrinks, shoppers tend to reduce their trips to the grocery store. Our research shows shoppers between the ages of 19 and 24 make approximately 34.3% more grocery trips than shoppers ages 75 or more.

For retailers, this makes in-store conversions increasingly important. Management of basket sizes and enhancing ease of shopping for seniors should become priorities.    For CPG brands, these demographic realities require rethinking product offerings to serve the needs of older adults. Packaging, labeling and ingredients all may need to adapt to changing physical abilities and health conditions. Marketing and advertising must speak to older consumers.

As the demographic shift towards an older population continues, changes in household dynamics and shopping behaviors will significantly impact the industry. By understanding and adapting to these changes, businesses can position themselves for success in a rapidly evolving market.

84.51° Stratum is powered by data from over 62 million households encompassing over 2 billion transactions every year. Contact us to learn how you can gain a deeper shopper understanding and revolutionize your business decisions.