The affluent, aging populations of the developed world represent one of the most likely sources of profitable growth for consumer products companies in the coming years, according to a new report by Deloitte Touche Tohmatsu.
“Global Powers of the Consumer Products Industry” argues that, while developed markets as a whole offer limited opportunities for growth, the "forever young" attitude of the baby boomer generation represents a significant opportunity for innovation to address the specific needs of this consumer segment.
Dr Ira Kalish, director of consumer business for Deloitte Research in the US, says: "Aging populations in the UK, Germany, Japan, and even China and Russia offer significant opportunities, and we would expect to see new products being developed for this group. For example, consumer products companies are already leading the way in functional foods to help manage disease, illness, and health and wellness."
The report suggests that the biggest single opportunity comes from the emerging middle classes in developing economies, with an estimated 70-million new consumers expected to enter the global middle classes each year.
However, to fully exploit this opportunity, companies must prepare for radical innovation to deliver the right products at price points that are typically well below equivalent products in the developed world.