The world’s population is ageing at an accelerated rate. Declining fertility rates combined with steady improvements in life expectancy over the latter half of the 20th century have produced dramatic growth in the world’s elderly population. People aged 65 and over now comprise a greater share of the world’s population than ever before, and this proportion will increase during the 21st century.

Key drivers:

• Baby boomer generation: born between 1946 and 1963, they are the best educated, healthiest, and wealthiest generation ever to reach midlife
• Declining fertility: the world fertility rate has fallen from 5 children born per woman in 1950, to 2.5 in 2006
• Dividing consumer groups: delayed marriage, childbirth, and high divorce rates has decreased the number of children, further increasing the divide between old and young
• Living longer: world life expectancies have increased from 47 in 1950 to a predicted 75 by 2050
• Industrialised countries: average life expectancy is even higher at 82 years, further increasing the proportion of older people in the population

Transforming Industries

They’ve passed through the hippie and yuppie stages, now the first of the baby boomers are turning 60, they are redefining ageing and breaking new boundaries.

Raised on the advent of fast food, the instant gratification of television, and coming of age during times of prosperity, they have transformed food to fashion, automotive, investment, healthcare, created the debt society we live in, and transformed the way we educate and work.

Retirement now means longer life expectancy, better health and great wealth; it means the start of the “third age”.

The ageing world

• The global population will age faster in the next 50 years than ever before
• In the US someone turns 50 every 7 seconds
• There are 450 million baby boomers worldwide
• By 2025 one third of Europe’s population will be aged 60 years and over
• Worldwide, population aged 60+ is growing faster than any other age group
• Today, the population aged 60+ is 605 million, it will almost double by 2025, to 1.2 billion. By 2050, it will reach 2 billion.

Shift from “youth” perspective

Companies have long been obsessed with youth marketing and the cool factor. Many companies are now refocusing at the older end...where the numbers are and where the money is.

The older generation is asserting itself through fashion. Individual style will increase in importance, thereby increasing the market opportunity for fashion in this age driven segment.

Healthy ageing

Long life is most desirable when it is lived in good health. “Healthy ageing” has become a catch cry as the population seeks to stay healthy as they age, thereby increasing their chances of enjoying retirement and taking full advantage of their senior years.

Money is one of the keys to healthy ageing. Wealthier consumers have significant product and service choices including food, medicine, spas and surgery.

The ageing population and Merino wool

An historical affinity with wool and the means and desire for quality and luxury is set to drive growth for premium products such as Australian Merino. At the same time, youthful attitudes and a desire to age in style is set to drive retailers and brands to expand and incorporate strategies to suit the ageing population.