Asia's senior market not to be underestimated, says Euromonitor

06-May-2015 - Last updated on 06-May-2015 at 15:15 GMT

Contrary to popular belief that senior consumers are frugal spenders with lower incomes, Euromonitor says they are a growing demographic that cannot be ignored, providing rich opportunities for companies that get it right.

The highest number of 'later lifers' can be found in Asia Pacific. In 2014, 508 million people were reported to be over 60.

According to the market researcher, China is also the most rapidly growing ageing population, with the number of over 60's forecast to increase by over 46 per cent between 2014 and 2030.

However, this segment remains difficult to crack for technology vendors and digital service providers, as levels of IT literacy among this group are lower.

Euromonitor analysts report the group has a greater mistrust towards online transactions and is the last to adopt new technologies.

“Many seniors still harbour somewhat sceptical attitudes towards the potential benefits of technology, believing they are better off staying offline."

Anti-agers are not frequently used beauty products

In the over 60 year old age group, bigger proportions of consumers use facial and body moisturisers without explicit anti-ageing claims.

Although scientific development has made impressive strides in understanding the various causes of ageing, there are gaps in the market to address certain signs of ageing.

According to Ildiko Szalai, beauty research senior analyst; anti-ageing portfolios need to clearly segment the prevention / protection stages to target more mature consumers’ needs.

This, she says can be done through reversing the signs of ageing and offering cell renewal properties, as, for example, L’Oréal Paris Age Perfect Cell Renew Night Cream has done.

"Only about one third of over 60 year olds have adopted a complex anti-ageing routine, and there is significant room to expand usage frequency in this growing and relative affluent consumer base," says Szalai.

'Mature consumers are clearly ready to spend'

Although price remains the most influential product feature globally when it comes to purchasing skin care products, Euromonitor found that across all age groups, over 60 year olds are the least concerned about price.

"Mature consumers are clearly ready to spend on beauty products if their concerns are addressed."

The most influential features for mature consumers are function, such as moisturising or sun protection in skin care or volume boosting and anti-breakage efficacy in hair care, and natural-organic credentials.

Thus, the market researcher advises that manufacturers should diversify their product offerings "under well-established labels and build on existing brand recognition when targeting mature consumers".

However, beauty regime evolution is not uniform globally, and regional and country differences also need to be taken into account.