Fun Fact: Only about 1% of innovations worldwide target consumers over 50 years old. Merely 10% of markting budget is invested in the baby boomer generation and their parents. This comes at a surprise, considering the current demographic change and the high purchasing power of the target group “best ager”.
One example of the above mentioned 1% of innovations is the US startup Perennial, which specializes its plant-based foods on older consumers and their needs. The California-based company was founded in 2016 by the co-founder of Beyond Meat Brent Taylor and has received funding of USD 2.5 million. Among the investors is the Investor Collaborative Fund.
The status quo in Germany
In Germany the target group of senior citizens is largely neglected as well, as Hungry Ventures learned. However, the Munich-based company Kuchentratsch proves that the relevance of this age group is increasing. The startup, which mainly employs senior citizens, addresses the population of elderly and sells high-quality cakes. Handmade and conveniently delivered to your home. As a social business, their focus does not only lie on profit, but also on successful participation in social life. Dagmar Wöhrl and Carsten Maschmeyer from the TV-show “Die Höhle der Löwen” show their support of the concept by buying into the company with 100.000 Euro for 10% of the shares.
What can we learn from this?
It should be noted that senior citizens do not receive the appropriate amount of attention as a target group. Hardly any product innovations are tailored to them, resulting in an enormous waste of sales potential. The so-called “best agers” are rather wealthy in the demographic ranking and tend to pay great detail to product quality. Furthermore they have more time for leisure and shopping and, thanks to a growing digital affinity, are increasingly accessible via online channels.
Based on the growing importance of this target group, now seems like the right time to take a closer look at the requirements, needs and buying motives of senior citizens. Doing so will help cater to the needs of this underdeveloped market in a targeted manner.