Greg Kitzmiller04.01.02
We are sometimes quick to take information and run with it without considering all aspects. This can lead us to believe we know something yet if we dig deeper we find there is more than we at first thought. Let’s take the demographics of aging as an example. We all know that the population is getting older, right? The median age of our U.S. population has increased in the census since 1850. Believe it or not the median age in 1850 was only 18.9 (no wonder an eleven year old went off to fight in the Civil War).
Ken Dychtwald, Ph.D., author and founder of Age Wave, discussed the difference in aging today as opposed to decades ago. “We are in the midst of the most extraordinary evolutionary event of all time: the mass aging of our society. Throughout 99% of human history, the average life expectancy has been 18 years. In the past, people didn't age; they died.” This is evident when we look at the senior population today as there are many brands targeting seniors and showing gray-haired folks living life to the fullest.
It is agreed that the 65+ crowd is a huge segment in the U.S., representing about 12% of our population, according to the 2000 census. Ironically, that is the size of the African-Americans or Latinos in the U.S. However, it is more than likely that most firms target the 65+ group than use Spanish language or Latino advertising in the U.S., while the size of the targets is about the same.
That said, the 65+ demographic is big but it is not the dominant age group in the U.S. Based on all of the hype it would not be unusual to draw the conclusion that the 65+ group is dominant but this is not ture. Not yet! The fact is, they are not growing as fast as the average population. The percent increase between 1990-2000 for the general population was 13.2% and for those 65+ the increase was 12%.
There IS an aging population. But the key is “aging” and not seniors of today. The aging of the population is fueled by the “baby boomers” and by the fact that there was a low birth rate following the boomers. The average age is, indeed, getting older as we have seen. However, with the baby “boomlet” that occurred from 1980-1995, as boomers had kids, there is a new younger group that is helping hold the average age down slightly.
When we consider the influx of Mexican-Americans—the youngest ethnic group—population aging slows down even more, so that while the average age is increasing there is also a significant group of younger Americans. The birth to age 19 group was significantly larger in the 2000 census than in the 1990 census. That makes the 18 and under group representative of 26% of the total population now. Compare that to the 12% for seniors 65+ and we see that the total kids market is bigger than the current seniors market.
So while some products will certainly target today’s seniors (denture adhesive or seniors vitamin formula, for example) other products should target those in the population that are aging, while wanting to remain youthful.
The largest age group in the U.S. population in 2000 was the 35-39 group followed by the 40-44 group. At the other end of the baby boomer profile, we’ve already seen that the biggest increase in an age group was among those 50 –54. Given buying power and number of people that means that those “aging” from 35-59 represent a very significant consumer group in total. In fact, those ages 35–59 represent 34% of the population, or nearly three times that of seniors. So targeting those who are getting older and want to avoid some of the pitfalls of aging certainly makes a lot of sense. For some marketers, however, there is still a strong argument for targeting the age group of 50+. According to Mr. Dychtwald, “While people age 50 and older account for only 27% of the population, they represent nearly 50% of total consumer demand, 65% of total net worth and 70% of all personal financial assets. These figures will continue to increase with the aging of the boomers."
Where are the younger vs. older in the U.S.? Many assume most seniors have moved to Florida or Texas. In reality, however, the Northeast region of the U.S. has the highest median age and the West has the youngest. While almost 18% of the population in Florida is over 65, Pennsylvania and West Virginia have over 15%, while Iowa, North Dakota and Rhode Island have over 14%. Clearly California and the Southwest have the youngest median age when viewed by state, with Utah the youngest. When reviewing counties by median age data suggest to target parts of the Northeast and middle Atlantic states along with much of the Midwest if the target is the middle age group. County by county data is available from the U.S. census bureau.
It is important to consider specific demographic targets and to understand the difference in each. “Aging” does not mean “aged” just as the youth of today are not like the Generation Xers who are now our young adults. U.S. baby boomers will mark JFK’s assassination or that of Dr. Martin Luther King along with the collapse of the World Trade Center as significant days in their lives. And college students when writing papers will write as if the World Trade Center event was the only significant event of the past 50 years because they’ve experienced few others. Truly grasping the differences in demographics and beginning to overlay attitudes and lifestyles gives us a rich understanding of potential targets. But making assumptions based on our view of the world or on popular press headlines may mislead us. Digging into the real differences will help us target exactly those likely to buy nutraceutical products.NW
Ken Dychtwald, Ph.D., author and founder of Age Wave, discussed the difference in aging today as opposed to decades ago. “We are in the midst of the most extraordinary evolutionary event of all time: the mass aging of our society. Throughout 99% of human history, the average life expectancy has been 18 years. In the past, people didn't age; they died.” This is evident when we look at the senior population today as there are many brands targeting seniors and showing gray-haired folks living life to the fullest.
It is agreed that the 65+ crowd is a huge segment in the U.S., representing about 12% of our population, according to the 2000 census. Ironically, that is the size of the African-Americans or Latinos in the U.S. However, it is more than likely that most firms target the 65+ group than use Spanish language or Latino advertising in the U.S., while the size of the targets is about the same.
That said, the 65+ demographic is big but it is not the dominant age group in the U.S. Based on all of the hype it would not be unusual to draw the conclusion that the 65+ group is dominant but this is not ture. Not yet! The fact is, they are not growing as fast as the average population. The percent increase between 1990-2000 for the general population was 13.2% and for those 65+ the increase was 12%.
What is Meant by ‘Aging?”
There IS an aging population. But the key is “aging” and not seniors of today. The aging of the population is fueled by the “baby boomers” and by the fact that there was a low birth rate following the boomers. The average age is, indeed, getting older as we have seen. However, with the baby “boomlet” that occurred from 1980-1995, as boomers had kids, there is a new younger group that is helping hold the average age down slightly.
When we consider the influx of Mexican-Americans—the youngest ethnic group—population aging slows down even more, so that while the average age is increasing there is also a significant group of younger Americans. The birth to age 19 group was significantly larger in the 2000 census than in the 1990 census. That makes the 18 and under group representative of 26% of the total population now. Compare that to the 12% for seniors 65+ and we see that the total kids market is bigger than the current seniors market.
So while some products will certainly target today’s seniors (denture adhesive or seniors vitamin formula, for example) other products should target those in the population that are aging, while wanting to remain youthful.
Middle Age is the Key
The largest age group in the U.S. population in 2000 was the 35-39 group followed by the 40-44 group. At the other end of the baby boomer profile, we’ve already seen that the biggest increase in an age group was among those 50 –54. Given buying power and number of people that means that those “aging” from 35-59 represent a very significant consumer group in total. In fact, those ages 35–59 represent 34% of the population, or nearly three times that of seniors. So targeting those who are getting older and want to avoid some of the pitfalls of aging certainly makes a lot of sense. For some marketers, however, there is still a strong argument for targeting the age group of 50+. According to Mr. Dychtwald, “While people age 50 and older account for only 27% of the population, they represent nearly 50% of total consumer demand, 65% of total net worth and 70% of all personal financial assets. These figures will continue to increase with the aging of the boomers."
What About Geographic Information?
Where are the younger vs. older in the U.S.? Many assume most seniors have moved to Florida or Texas. In reality, however, the Northeast region of the U.S. has the highest median age and the West has the youngest. While almost 18% of the population in Florida is over 65, Pennsylvania and West Virginia have over 15%, while Iowa, North Dakota and Rhode Island have over 14%. Clearly California and the Southwest have the youngest median age when viewed by state, with Utah the youngest. When reviewing counties by median age data suggest to target parts of the Northeast and middle Atlantic states along with much of the Midwest if the target is the middle age group. County by county data is available from the U.S. census bureau.
Details, Details…
It is important to consider specific demographic targets and to understand the difference in each. “Aging” does not mean “aged” just as the youth of today are not like the Generation Xers who are now our young adults. U.S. baby boomers will mark JFK’s assassination or that of Dr. Martin Luther King along with the collapse of the World Trade Center as significant days in their lives. And college students when writing papers will write as if the World Trade Center event was the only significant event of the past 50 years because they’ve experienced few others. Truly grasping the differences in demographics and beginning to overlay attitudes and lifestyles gives us a rich understanding of potential targets. But making assumptions based on our view of the world or on popular press headlines may mislead us. Digging into the real differences will help us target exactly those likely to buy nutraceutical products.NW
