A major demographic shift is underway in the Western population. 253 million babies were born in the 1946-70 period in the G7 wealthiest countries (USA, Japan, Germany, France, UK, Italy, Canada).
They have driven consumer spending over the past 15 years, as the majority of them moved into the 25 – 54 age group. This is when people typically marry, settle down, and have children.
But now, they are moving into the 55+ age group. They are starting to save more and spend less. They have to save much more, as their life expectancy is 10 years longer than the previous generation’s.
And the younger generation is 38 million smaller. Only 215 million babies were born in the G7 between 1971-95. Thus consumption of many current products will fall 15%.
Equally, of course, the ageing BabyBoomer population will instead want to buy new products and services. This will create plenty of opportunities for companies to increase their sales, at the expense of those who remain stuck in the Old Normal.
This challenge is the basis for the next New Normal seminar, to be held in Frankfurt, Germany on June 16-17. It is a vital issue for anyone involved in commercial or planning activities.
I hope to see you in Frankfurt.