New research investigates the aging of populations and its influence on markets

LONDON New research released by Datamonitor on Friday identified the aging of populations around the globe and how this trend will have crucial implications for the U.K. markets.

“The aging of populations globally is an issue that will increasingly shape both society and its consumer markets,’ stated Matthew Adams, consumer analyst at Datamonitor and co-author of the reports.

A large proportion of the population in each European country accounted for by consumers aged 50 and above. The U.K. was one of the youngest nations, relatively, in Europe in 2007, but the senior population still exceeded one third of the overall population. The greatest proportional growth in senior is expected to occur in the United States, with a 1.5% compound annual growth rate among seniors.

However, the relative proportion lags behind the norm in Europe by a short margin. In absolute numbers, the senior group of consumers comprises more than 90 million Europeans and should rise to over 100 million by 2012.

Overall, seniors are an ideal target demographic, the report concluded.

“With substantial assets and significant liquid capital, seniors are likely to ‘upgrade’ and choose premium products, particularly those ‘empty nesters’ who have less obligation to support the family and children,” stated Matthew Taylor, consumer market analyst at Datamonitor and also co-author. “The recent ‘less is more’ philosophy might reinforce the pursuit of high quality products. The aging of the baby boomers is also a factor in turning toward a less materialistic approach to the luxury lifestyle. With increased consumer awareness of ‘sustainability’, many products made with natural ingredients cultivated organically, or sourced from specific origins, are becoming popular among these sophisticated consumers.”