[Report] U.S. Baby Boomer Market: From The Beatles to Botox TOC

I. Executive Summary

Introduction

Scope of Report
Report Methodology
Looking Ahead: Trends and Opportunities

Boomer Demographics

Boomers Reach Middle Age
Boomers Over 77 Million Strong
Two Boomer Cohorts
Black Boomers Have Different Values
Majority of Boomers Are Married
The First Educated Generation in History
80% of Boomers Are Employed
Over a Third of Boomers Are Southerners
45- to 54-Year-Olds Have Highest Incomes—and Expenses
Will Boomers Be Able to Afford Retirement?
Boomers Attempt to Stave Off Age with Exercise
Boomers' Attitudes, Tastes, and Preferences Established in 1950s and 1960s
Boomers' Values, Politics, Evolve with Age

The Boomer Market

Boomer Market to Near $2.6 Trillion by 2007
Table 1-1: Aggregate After-Tax Income of Baby Boomer Market, 1998-2007 (dollars)
Boomers Dominate Market for Most Consumer Goods and Services
Figure 1-1: Boomer Expenditures for Consumer Produtcs and Services, 2000 (dollars): 9 Categories
Americans 45-54 Have Highest Income
Boomers' Spending Ability Proven

Boomers as Consumers

Boomers Spend More in Virtually All Categories
Less Than Half of Boomers Have Any Investments
Boomerfs Financial Services Needs Not One-Size-Fits-All
Boomer Patterns for Food and Beverages
Boomers Drive Growth of Vitamins, Food Supplements
Empty-Nesters Enjoy Eating Out
Upper Midsize, Mini Vans Fill Many Boomers' Driveways
Boomer Patterns for Entertainment and Recreation: The Beat Goes On
Boomers Fuel Growth in Travel Industry
Boomers an Underappreciated Market for Apparel
Boomers Bring Consumerism to Healthcare
Boomer Patterns for Household Furnishings and Equipment
Boomers Spend More Than Other Age Groups on Personal Care Products and Services
Boomers Seek Anti-Aging Skincare Products
Boomers as E-Consumers

Boomer Use of Media

News and Educational TV Are Big Winners with Boomers
Boomers the Demographic Behind Many Radio Stations
Boomers a Major Part of Readership of Most Mainstream Publications
Catalogs the Only Direct Mail Boomers Read
Over Half of Boomers Use Interactive Computer Service

Marketing to Boomers

Marketers Know Boomers, But Age Brings Change
White, Affluent Stereotype Alienates Many Boomers
Product Must Meet Boomer Needs—As They Define Them

Examples of Campaigns and Strategies Targeted to Boomers

MasterCardfs "Priceless" Campaign Reflects Changing Boomer Values
Uncle Benfs Targets Boomers' Adventurous Palates
"Road Candy" Appeals to Boomers
Tour Companies, Resorts, and Travel Destinations Understand Importance of Aging Boomer Market
Dearth of Clothing-Related Advertising Reflects Market Lack
Women Bombarded by Anti-Aging Ads
Olay Preaches Self-Acceptance

II. Boomer Demographics

Introduction

Boomers Reach Middle Age
Implications for Marketers
How Baby Boomers Will Change Aging

The Boomer Population

Boomers Over 77 Million Strong
Boomers Driving Median Age of Population
Two Boomer Cohorts
Many Boomers Now Considered Mature
Females Increasingly Outnumber Males with Age
Whites Dominate Ranks of Boomers
Black Boomers Have Different Values
"Stonewall" Generation Part of Boomer Population
Table 2-1: Age Distribution of Baby Boomer Population, 2002-2007 (number): From Age 38 to Age 61
Table 2-2: Ratio of Mature Boomer Males to Females, 2002 vs. 2007 (number and percent)
Table 2-3: Share of Baby Boomers by Racial Origin, 2002 (number and percent): Whites, African Americans, Hispanics, Asian/Pacific Islanders, Native Americans

Boomer Family Patterns

Majority of Boomers Are Married
... Many More Than Once
Boomers See Benefits of Marriage, Fidelity
Boomers Have Fewer Children, but More Stepchildren
Over Half of Boomer Households Are Without Kids
Boomers Are "Sandwich Generation"
Table 2-4: Share of U.S. Adult Population by Marital Status and Age Grouping: 18-34, 35-54, and 55 or Over, 2001 (% of U.S. Adults): 4 Classifications
Table 2-5: U.S. Adults in Households Without Children Present by Age Grouping: 18-34, 35-54, and 55 or Over, 2001 (number and % of U.S. Adults): 3 Age Brackets
Table 2-6: Share of U.S. Adult Population by Age of Children in Household and Age Grouping: 18-34, 35-54, and 55 or Over, 2001 (% of U.S. Adults): 5 Classifications

Boomer Educational Patterns

The First Educated Generation in History
Gen Xfs Educational Achievement Gaining on Boomers
Table 2-7: Share of U.S. Adult Population by Highest Level of Educational Attainment and Age Grouping: 18-34, 35-54, and 55 or Over, 2001 (% of U.S. Adults): 6 Classifications

Boomer Employment Patterns

80% of Boomers Are Employed
Table 2-8: Share of U.S. Adult Population by Employment Status and Age Grouping: 18-34, 35-54, and 55 or Over, 2001 (% of U.S. Adults): 5 Classifications
Boomers Have Changed the Workplace
Many Boomers Will Continue Working

Boomer Housing Patterns

Over a Third of Boomers Are Southerners
Nearly 80% of Boomers Live in Houses
Boomers Trail Their Elders in Home Ownership
Table 2-9: Share of U.S. Adult Population by Region and Age Grouping: 18-34, 35-54, and 55 or Over, 2001 (% of U.S. Adults): 4 Classifications
Table 2-10: Share of U.S. Adult Population by Type of Residence and Age Grouping: 18-34, 35-54, and 55 or Over, 2001 (% of U.S. Adults): 3 Classifications
Table 2-11: Share of U.S. Adult Population by Kind of Residence and Age Grouping: 18-34, 35-54, and 55 or Over, 2001 (% of U.S. Adults): 3 Classifications

Boomers and Finances

45- to 54-Year-Olds Have Highest Incomes ...
... And Also the Highest Expenses
Less Than Half of Boomers Have Any Investments
Home Mortgage Most Common Loan for Boomers
Will Boomers Be Able to Afford Retirement?
Company-Based Retirement Plays Major Role in Retirement Strategy
Two in 10 Will Be Self-Sufficient in Retirement
Will Retiring Boomers Overburden the Young?
Will Retiring Boomers Bust the Economy?
Are Boomer Richer Than Their Parents?
Table 2-12: Types and Value of Investments Owned by Age 35-54 Population: Overall and by Gender, 2001 (number and % of U.S. Adults): 16 Types/6 Values of Investments
Table 2-13: Types of Loans Held by Age 35-54 Population: Overall and by Gender, 2001 (number and % of U.S. Adults): 8 Types

Boomers and Health

Physical Changes Accompany Aging
Oral Maintenance Becomes an Increasing Concern
Hearing Loss
Changes to the Skin
Menopause
Reduction of Sexual Functioning
Baldness or Thinning Hair
Heart Disease
Boomers Attempt to Stave Off Age with Exercise
Swimming Tops List of Boomer Sports
"Boomeritis" Plagues Aging Athletes
Medical Advances a Double-Edged Sword
Table 2-14: Physical Fitness Programs/Exercise by Age 35-54 Population: Overall and by Gender, 2001 (number and % of U.S. Adults): 5 Classifications
Table 2-15: Top Sports Activities Participated in by Age 35-54 Population, 2001 (number and % of U.S. Adults): 6 Classifications

Boomer Psychographics

Boomers' Attitudes, Tastes, and Preferences Established in 1950s and 1960s
Factors That Influenced the Boomer Cohort
Growing Up in the Shadow of the Bomb
Birth Control and an End to "Reproductive Tyranny"
Turning On and Dropping Out
Influences of the 1970s
Interest in the Outdoors
Interest in Healthy Food and Alternative Healthcare
Boomers Believe World Can Be Changed
Peace Corps, An End to Hunger, Ben & Jerryfs Other Examples of Boomer Optimism
Health a Key Factor in Autonomy, Self-Esteem
Appearance Important, Particularly for Women
Aging More Psychologically Stressful for Men?
Americans Picture Themselves Younger Than Their Chronological Age
Life Stages No Longer Set in Stone
Boomers' Values, Politics, Evolve with Age

III. The Boomer Market

Figure 3-1: Estimated Size of U.S. Baby Boomer Market, 1998-2002 (dollars)

Market Size and Growth

Boomer Market Reaches $2.5 Trillion
Boomers Dominate Market for Most Consumer Goods and Services
Boomers Fill the Highest Income Brackets
Female Boomers Have Lower Incomes
Table 3-1: Estimated Size of U.S. Baby Boomer Market, 1998-2002 (dollars)
Table 3-2: Boomer Expenditures for Consumer Products and Services, 2000 (dollars): 9 Categories
Table 3-3: Share of U.S. Adult Population by Household Income Bracket and Age Grouping: 18-34, 35-54, and 55 or Over, 2001 (% of U.S. Adults): 11 Classifications
Table 3-4: Household Income Bracket for Age 35-54 Population by Gender, 2001 (% of U.S. Adults): 11 Classifications

Factors to Market Growth

Americans 45-54 Have Highest Income
Boomers Still Building Net Worth
Boomers' Spending Ability Proven
Figure 3-2: Projected Growth of Baby Boomer Market, 2002-2007 (dollars)

Projected Market Growth

Market to Near $2.6 Trillion by 2007
Table 3-5: Projected Growth of Baby Boomer Market, 2002-2007 (dollars)

IV. Boomers As Consumers

Boomer Spending on Consumer Products and Services

Note on Statistics
Households 35-54 Have Highest Annual Expenditures
Boomers Spend More in Virtually All Categories
Boomers Particularly Important Consumers of Products/Services
Table 4-1: Average Annual Household Expenditures: Age 35-54 vs. Total U.S., 2000 (dollars and % of U.S. Adults): 17 Categories

Boomers and Financial Services

Less Than Half of Boomers Have Any Investments
Home Mortgage Most Common Loan for Boomers
New Products Created for Boomers
Boomerfs Financial Services Needs Not One-Size-Fits-All
Some Boomer Financial Service Needs Are Predictable
Table 4-2: Types and Value of Investments Owned by Age 35-54 Population: Overall and by Gender, 2001 (number and % of U.S. Adults): 16 Types/6 Values of Investments
Table 4-3: Types of Loans Held by Age 35-54 Population: Overall and by Gender, 2001 (number and % of U.S. Adults): 8 Types

Boomer Patterns for Food and Beverages

Boomers Spend More on Food
Boomers Health-Conscious, But Eat What They Like
Boomers Drive Growth of Vitamins, Food Supplements
Food Marketers Mobilize for Growth of Nutraceutical Market
Boomers Spend Big on Eating Out
Empty-Nesters Enjoy Eating Out
Boomers Not Immune to Fast Food Temptation
Table 4-4: Grocery Expenditure Patterns by Age 35-54 Population: Overall and by Gender, 2001 (number and % of U.S. Adults): 11 Expenditures
Table 4-5: Low-Fat/Fat-Free Food Items Purchased by Age 35-54 Population: Overall and by Gender, 2001 (number and % of U.S. Adults): 8 Types
Table 4-6: Top Chain Restaurants Patronized by Age 35-54 Population, 2001 (number and % of U.S. Adults): 8 Types

Boomers and Automobiles

Upper Midsize, Mini Vans Fill Many Boomers' Driveways
Boomers Developing a Sweet Tooth for "Road Candy"
Boomers "Age" the Motorcycle Population
Boomer-Geared Cars Will Accommodate Aging
Table 4-7: Car Types Most Recently Acquired by Age 35-54 Population: Overall and by Gender, 2001 (number and % of U.S. Adults): 19 Types

Boomer Patterns for Entertainment and Recreation

The Beat Goes On
Boomers Fuel Growth in Travel Industry
Over 50 Travelers Spend More, Stay Longer
Adventure Travel a Hit with Boomer Travelers
Travel by Women on the Rise, Adventure Travel Has Strong Appeal
Boomers May Spark Revival in Group Travel
Table 4-8: Top Types of Leisure Activities by Age 35-54 Population, 2001 (number and % of U.S. Adults): 23 Types
Table 4-9: Travel and Vacation Patterns by Age 35-54 Population, 2001 (number and % of U.S. Adults): 7 Patterns

Boomers and Apparel

Boomers an Underappreciated Market
Boomers Want to Stay Fashionable
Nearly 70% of Boomers Bought Athletic Shoes Last Year
Nike Is Leading Athletic Shoe Among Boomers
Table 4-10: Boomer Spending on Apparel: All U.S. Households vs. Age 35-54 Households, 2002 (dollars): 8 Categories
Table 4-11: Top Sneaker/Athletic Shoe Types Purchased by Age 35-54 Population: Overall and by Gender, 2001 (number and % of U.S. Adults): 8 Types
Table 4-12: Top Sneaker/Athletic Shoe Brands Purchased by Age 35-54 Population: Overall and by Gender, 2001 (number and % of U.S. Adults): 16 Types

Boomers and Healthcare

Boomers Spend Big on Healthcare
Boomers Expected to Remain Active Longer
Boomers Bring Consumerism to Healthcare
Boomers Boost Demand for Plastic Surgery and Joint Replacements
Nearly 60% of Boomers Use Non-Prescription Medications
A Quarter of Boomers Take Multi-Vitamins
"Active Adult" Communities Trend for Boomers
Boomers to Reshape Elder Care
Desire for Individuality Extends to Death
Table 4-13: Non-Prescription Products for Ailments Used by Age 35-54 Population: Overall and by Gender, 2001 (number and % of U.S. Adults): 11 Types
Table 4-14: Nutritional Supplement Products Used by Age 35-54 Population: Overall and by Gender, 2001 (number and % of U.S. Adults): 19 Types

Boomer Patterns for Household Furnishings and Equipment

Empty Nesters Refeather Their Homes
Boomers Focus on Cosmetic Home Improvements
Table 4-15: Top Home Improvement Purchases by Age 35-54 Population, 2001 (number and % of U.S. Adults): 29 Classifications

Boomers and Personal Care

Boomers Spend More Than Other Age Groups on Personal Care Products and Services
Boomers Seek Anti-Aging Skincare Products
Boomers Also Concerned About Oral Hygiene
Table 4-16: Usage Rates for Moisturizers/Creams/Lotions by Women Age 35-54, 2001 (number and % of U.S. Adult Females): 4 Classifications
Table 4-17: Types of Moisturizers/Creams/Lotions Used Most Often by Women Age 35-54, 2001 (number and % of U.S. Adult Females): 5 Classifications

Boomers as E-Consumers

Boomers Big on Cell Phones
Boomers Are Internet Savvy
Nearly a Third of Boomers Make Purchases Online
Table 4-18: Internet Ordering by Age 35-54 Population, 2001 (number and % of U.S. Adults): 22 Product Types

Boomer Shopping Patterns

Boomers Not Crazy About Shopping
Boomer Patience for Shopping Likely to Decrease Further
Boomers Happy to Let Fingers Do Walking
Wal-Mart Most Popular Boomer Shopping Destination
Table 4-19: Top Chain Retail Stores Patronized by Age 35-54 Population, 2001 (number and % of U.S. Adults): 24 Types of Retail Stores

Boomer Retail Preferences

Boomers Like Choices
Boomers Pay More for Quality But Like Bargains
Several Retailers Well Targeted to Boomers

V. Boomer Use Of Media

Boomers and Television, Radio

Age Groupings Obscure as Much as They Reveal
Advertisers Prefer Younger Audiences, But Reasoning May Be Flawed
Boomers Abandoned by Networks
News and Educational TV Are Big Winners with Boomers
Action/Adventure Movies Most Watched by Boomers
Viewing Tastes Mellow with Age
GoodLife Seeks to Be TV Destination for Boomers
Boomers the Demographic Behind Many Radio Stations
Boomers Also Fuel Business News Radio Trend
Boomers a Golden Radio Audience
Table 5-1: Top Cable TV Services Viewed by Age 35-54 Population, 2001 (number and % of U.S. Adults): 20 Channels
Table 5-2: Movie Types Viewed by Age 35-54 Population: Overall and by Gender, 2001 (number and % of U.S. Adults): 7 Types

Boomers and Print

Boomers a Major Part of Readership of Most Mainstream Publications
Growing List of Publications Targeted to Boomers
AARP Revamps Its Publications for Boomers
More Targets Women 45 and Older
Boomer-Oriented Beauty Mags Focus on Anti-Aging
Do Boomers Really Want to Read About Themselves?
Table 5-3: Top Magazines Viewed by Age 35-54 Population, 2001 (number and % of U.S. Adults): 29 Magazines

Boomers and Direct Mail

Catalogs the Only Direct Mail Boomers Read
Clothing Is Most Popular Catalog Purchase
JCPenney Catalog Is Favorite Among Boomers
Donft Call Them "Senior"
A Premium on Information
Patience with Direct Mailings Decreases with Age
Direct-Mail Effort to Reach Black Boomers Through Their Pastors
Table 5-4: Top Types of Catalogs Used by Age 35-54 Population, 2001 (number and % of U.S. Adults): 11 Types
Table 5-5: Top Catalogs Used by Age 35-54 Population, 2001 (number and % of U.S. Adults): 15 Catalogs

Boomers and Electronic Media

Use of Electronic Media Growing
Over Half of Boomers Use Interactive Computer Service
Are Boomer Interested in Boomer Topic Sites?
Table 5-6: Interactive Computer Services Used by Age 35-54 Population: Overall and by Gender, 2001 (number and % of U.S. Adults): 11 Types

VI. Marketing To Boomers

The Marketing Landscape

Marketers Know Boomers, But Age Brings Change
What Worked Before Won't Work with Boomers
Boomers Experienced at Filtering Hype
Experimentation a Mixed Blessing for Marketers
White, Affluent Stereotype Alienates Many Boomers
Boomers Not Planning to Slow Down
Boomers Don't Want to Change Lifestyle Because of Age
Product Must Meet Boomer Needs—As They Define Them
Humor a Key Marketing Ingredient
Boomers Want to Have Fun
Mid-Life Crisis to Play Out in Marketplace
New Experiences Motivate
Boomers Also Seek Balance, Simplicity
Five Key Values Motivate Mature Consumers
Autonomy and Self-Sufficiency One Half of Equation
Balanced by Social and Spiritual Connectedness
Altruism Tied to Social and Spiritual Connectedness
Transition to Altruism May Be Confusing for Marketers
Personal Growth Also a Goal
Revitalization Reinforces Internal Self-Renewal
Nostalgia Appeals to Boomers
Rock Music Captures Boomer Attention
Show Images Boomers Can Identify With
Boomers Identify Younger Than They Are
"Ageless" Theme Also Effective
Breaking Taboos Can Appeal to Boomers
Package It as Hip
Boomers Starved for Contemporary Role Models
Use of Celebrities Not Particularly Important
Boomers Not as Fussy About Language as Those Older Than Them
Don't Address Them as an Age Group
Companies Must Work to Regain Boomers' Confidence

VII. Examples Of Campaigns And Strategies Targeted To Boomers

Overview

Marketers Take Aim at Lucrative Boomer Demographic
Household Furnishing, Computer Ads Tend Not to Target Boomers

Financial Services

MasterCardfs "Priceless" Campaign Reflects Changing Boomer Values
Citibank Invites Boomers to "Live Richly"
Boomers Like to Feel Intelligent
Allstate Targets Women with Recipe Ad
Allstate Also Targets Boomers with the Beatles
UBS Offers Financial Fitness

Food and Beverages

Uncle Benfs Targets Boomers' Adventurous Palates
Energy Bars Appeal to Boomers' Desire to Fight the Clock
Crystal Light Invites Female Boomers to Enjoy the Journey
SPLENDA Appeals to Boomers' Activist Pasts

Automobiles

"Road Candy" Appeals to Boomers
The Thinking Manfs Convertible?
Boomers Also Drawn to Affordable Fun
Can Four Doors Be Cool?
Marrying Comfort and Cool
Volkswagen Offers Boomers Their Soul

Travel

Tour Companies, Resorts, and Travel Destinations Understand Importance of Aging Boomer Market
Adventure Travel Has Strong Appeal for Female Boomers
Club Med Sells "Community"

Apparel

Dearth of Clothing-Related Advertising Reflects Market Lack
Mainstream Stores Include Older Women in Advertising
Gap Reaches for Lost Boomer Business
Nostalgic Brand Attempts to Rebound
Bigger Women Want Fashion, Too

Healthcare Services

Few Healthcare Providers Advertise Nationally
Women Bombarded by Anti-Aging Ads

Personal Care

Olay Preaches Self-Acceptance
Anti-Aging Products Proliferate
The Promise of Whiter Teeth

Appendix I: Examples Of Consumer Advertising

Appendix II: Addresses Of Selected Marketers

U.S. Baby Boomer Market: From The Beatles to Botox - 3rd Edition , The