Baby Boomers are spending significant amounts of money everyday. Even though the Boomers are currently outnumbered by the millennials, the Baby Boomer crowd of approximately 75 million control the majority of the disposable income [about seventy (70%) percent]. Now let’s do a little digging and find out the products baby boomers want.
This group of folks, ranging from their 50’s to 70’s, also have or are about to inherit some significant amount of bucks as well. Plus, many of these folks rather spend it now on pleasurable things as well as supporting their family and investing in their family’s future. Many in this generation have the attitude of enjoying life while we are here, which includes taking care of family now and into the future.
So Where Is This Money Going?
For sure a good amount of this disposable income is going for travel. I have a friend with whom I previously worked in the mental health area, and since she retired she has been constantly on the road visiting family and taking international trips to many exotic locations. She is not shy about enjoying herself after a lifetime of dedicated service.
Actually Baby Boomers as a group spend in excess of one hundred and twenty billion dollars ($125 B) each year on traveling about the world. Many have saved their entire lives to travel to their dream destinations.
Another area where much money is being spent is healthcare. Whether it is for medical care, prescription drugs, alternative treatments, natural remedies, or exercise devices or gym memberships, a significant amount of money is being directed to this area.
Baby Boomers love their pets. They spend an estimated forty-five (45%) percent of all pet spending in the United States. Due to this, many retail stores are expanding their pet offerings, and many online businesses, both large and small, are finding this to be a profitable niche.
Compared to any other age group, the Boomers spend more on home repairs and improvements. When retired there is much more time spent around the house, and available for this type of stuff.
About forty (40%) percent of the Baby Boomers are currently spending more on satellite and cable television. Not my preferred form of entertainment, although I do enjoy watching some sports and old flics on Roku. Overall, many of this generation are more interested in staying fit, active, and traveling about.
Fun Stuff to Do
Many iin the Baby Boomer age group have postponed many things until they retired, and a large proportion of these folks are determined to make this time count. Whether it is a new hobby, creating a fun business, traveling here or there, or spending some quality time with their family, Baby Boomers are interested in adventure and fun.
In order to have the time to spend in areas of choice, the Boomers desire products and services which saves time and provvide convenience. Spending time at home needs to be a pleasurable experience, so household items and entertainment products are high on their list, as well as cosmetics and anti-aging products to look and feel good.
Hobbies are also important whether it is gardening, crocheting/knitting, golf, tennis, or anything else which suits your fancy. Since travel is an important area for this group, any type of travel product or service which makes the trip more easy and convenient is most welcome. Over one hundred and twenty billion dollars ($120 B) is spent by Baby Boomers on leisure travel.
How the Boomers Rate Some Products and Services
Contrary to what you may think, many companies are not aware of the buying habits of Baby Boomers. They are so focused on finding ways into the Millennial market, that they ignore a virtual goldmine right in front of them. Many Millennials don’t spend much in a lot of areas because of long-term debt. So much of these big companies’ time would be much better spent wooing the Baby Boomer market.
But there defintiely are some companies who understand the value of this market.
Some companies like McCormick (specialize in spices) understand and cater to this group, so their approval rating is highest among this generation. Reese’s peanut butter cups also rank high amongst the Boomers.
Other products and companies which get a high rating are WD-40, Johnson & Johnson (Band Aids), M&M’s, Clorox, Kleenex, Hershey’s Kisses, Ziploc, Planters, Betty Crocker, Windex, Chiquita bananas, Quaker, and Dawn.
It most defintiely pay dividents for companies large and small to recognize the importance of this segment of the market. Otherwise, many of these companies will be leaving a significant amount of money on the table.
It is important for businesses to recognize the buying habits of this generation not only to capitalize on the profit, but to bring the greatest value to this group of folks. As a result many businesses are becoming Baby Boomer Friendly. More marketing is targeted specifically to this group. Just check out recent Super Bowl commercials.
Many ski resorts are catering to the senior crowd by retrofitting their facilities. Many businesses are jumping on board this trend. Family is extremely important to the Boomer crowd, so any products and services which cater to family relationships are a high priority.
Financial institutions are creating pension plans and retirement products which Boomers can pay into for their family members, and in the caregiving area there are now innovative personal communication systems which enable Boomers and their parents to stay in touch.
Obviously not all companies’s products and services fit within the needs and deisres of this specific market, but for those that do it is wise to pay attention and adapt accordingly. This demographic definitely deserves the attention of many more businesses who may be ignoring or totally unaware of this potential.
A Significant Market to Serve
Just with this brief discussion of the products and services needed and desired by the Baby Boomer demographic, it is easy to see that small and large companies have a profitable niche to address. The sheer size of this market should get any business’s attention.
Since many Baby Boomers are not even retired, and still at the peak of their earning years, there is much discretionary income to be spent. It is important \to recognize the specific attitudes and beliefs of this segment of the population.
For anyone is the Baby Boomer age range, let me know what you think is important in terms of products and services. There may be things available right now of which you are not aware.
Now for those who may enjoy earning some money from marketing to the Baby Boomer marketplace check out my post on Baby Boomers and Marketing.
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Have fun on your next shopping spree,