Nielsen Wire » demographic shifts

From Generation Gap To Great Divide

Nielsen Wire — Fri, 28 Aug 2009 15:40:37 +0000

The conflict between hippies and their parents in the 1960s gave rise to a new term: the generation gap. Ever since, the phrase has been an easy way to define the differences in attitudes, politics and culture between the young and their elders. And while the generation gap seen today between aging Baby Boomers and a younger, fast-growing, multi-cultural population may not be as pronounced or dramatic as it was 40 years ago, the ramifications for the U.S. in 2020 are just as big, and perhaps even more so.

Beyond the typical issues such as values, morality, ethics, politics and religion, the generation gap extends to attitudes toward media. For example, younger people still watch a significant amount of TV (those age 25-34 watch more than 150 hours per month), but people age 65 and over watch 38 percent more. People age 35 and over spend more time online compared to the young. But when it comes to mobile phones, the young are the clear leaders in adopting and embracing new technology and products. For example, they are more likely to forsake landline phones in favor of mobile. They send texts with abandon – the average teenager sent or received over 35,000 messages in 2008! That’s 163 times more than the average 65 year old.

The U.S. in 2020 will be a very different marketplace from 2009, and the generation gap – the differences in values, outlooks and political perspectives – combined with the major demographic changes we analyzed last month, will play a starring role in shaping how media and technology are used.

Read a full analysis of the generation gap in the August edition of Consumer Insight.

USA 2020: A Very Different Place

Nielsen Wire — Fri, 31 Jul 2009 18:05:17 +0000

Like many industrialized nations, the face of the United States is changing. An aging population, a declining birth rate combined with growing ethnic diversity will pose new challenges for the economy. Along with these demographic changes will come shifts in consumer spending, and consumer goods marketers will have to adjust tactics, focus and products if they hope to capitalize on what will be the new reality.

So what will be different in terms of consumer spending in just 11 years? A weakened Social Security system and underfunded private pension plans will make it difficult for a large number of retirees to maintain their current standard of living. From now until 2020, the Struggling and Lower Mid affluence groups will be the only ones to gain share, pulling households from all other groups. Household sizes will decrease. Consumer spending will grow modestly over the next 11 years, but actually fall after 2020. And the changes that occur after that year – both in terms of demographics and spending – will require marketers to dramatically change the way they do business if they hope to continue to grow.

Read an in-depth look at the demographic changes projected to take place in the U.S., and the challenges and opportunities for manufacturers in the July edition of Consumer Insight.

Consumer Packaged Goods Trends For The Next Decade

Nielsen Wire — Tue, 12 May 2009 15:07:48 +0000

Demographic and economic shifts over the next ten years will dramatically reshape the growth of consumer packaged goods (CPG), according to new research from Nielsen which was presented today at the Consumer 360 conference in Orlando.

Categories that are likely to experience solid growth include ethnic health and beauty products, flour/shortening/sugar/yeast/eggs, and a variety of health-related goods such as vitamins and medications/remedies. The slowest growth categories are expected to be toys and sporting goods, breakfast foods, baby care and pet products.

In just ten years time, the face of America will change: fewer households will have children, the population will age and lower-income consumers will expand. Additionally, the majority of new families will be multi-cultural in less than two decades.

“The demographic shifts underway create both challenges and opportunities for CPG marketers, and companies that anticipate the shifts could have a competitive advantage,” said Doug Anderson, Senior Vice President, Global Research and Development at Nielsen. ”It will be absolutely critical for CPG companies to adapt in order to gain the attention and brand loyalty of the aging Baby Boomers, multi-cultural families and lower-income consumers of the future. Those who keep doing what they’re doing today will be left behind.”

Read a more detailed description of the demographic changes that will affect the CPG industry here.

Asian Influence Growing In The U.S.

Nielsen Wire — Thu, 20 Nov 2008 20:02:47 +0000

Often overlooked by marketers in comparison to the tremendous growth of the Hispanic population, Asians comprise a rapidly growing segment of the U.S. population that is not only culturally diverse, but also well-educated, affluent, and media savvy. Asians are expected to continue to grow rapidly as a share of U.S. population. Although they will likely continue to be ranked the third race or ethnic group by size (behind Hispanics and African Americans), they will make up a significant share of population over the next few decades. The fusion of Asian culture into the American mainstream will continue to gain importance and will increasingly gain focus from makers and sellers of consumer products, particularly in West Coast markets and those of the Northeast.

Read more about the media preferences, shopping behavior and acculturation patterns of the Asian consumer in the latest issue of Nielsen’s Consumer Insight.