'Empty nesters' are attractive target for functional food makers
more inclined to spend lavishly on themselves, shows a new report.
This makes them an attractive market for consumer packaged goods
manufacturers, including those making supplements and functional
foods.
Dubbed 'empty nesters', those aged over 50 whose children have left home or who never had children spent almost €64 billion in 2003 on consumer packaged goods, according to Datamonitor, and this is set to rise by almost 28 per cent to €81 billion in the next five years.
"The rise in self-rewarding behaviour among empty nesters demonstrated by their increase in spending on food, drinks and personal care, is at the centre of what makes them a very attractive market to consumer packaged goods (CPG) manufacturers and retailers," said Andrew Russell, consumer markets analyst at Datamonitor and author of the report.
'Early empty nesters', those aged between 50 and 64, are rapidly becoming a key consumer group. By 2008, there will be a total of 8 million in France, and their annual disposable income per capita will have increased by just over 10 per cent to €22,000. This equates to 132 per cent of the national average.
This sudden increase in wealth often sparks some highly indulgent spending, not only on big purchases such as travel, new homes and new cars, but also on everyday purchases including high quality food, fine drinks and pampering personal care.
"The rapid growth in spending comes as a result of increasing incomes coupled with people planning for an enjoyable and stress-free retirement and a strong desire to reward themselves both for raising a family and for a lifetime's work," commented Andrew Russell.
But the report also claims that self-rewarding does not equal self-indulging.
Empty nesters are well aware that they face elevated health risks from, for example, too rich a diet. As their goal is to enjoy a long and luxurious retirement, good health and fitness are essential. Empty nesters, therefore, have a greater need for health-related products such as functional food and drinks which can enable them to better enjoy their new lifestyle.
"Better heart health enables consumers to indulge in more active pursuits, such as dancing, entertaining or looking after grandchildren," notes Russell.
Knowing this, empty nesters often develop health regimes whereby they ensure that they have a constant intake of healthy products so that they can enjoy the lifestyle they want to lead.
