Silver dollars: 'Affordability and comfort' key for Asia's ageing population, with electrolytes and prebiotics trending
As Asia rapidly ages, other significant trends such as digitalisation and health and wellness are also emerging, presenting unique opportunities for brands in the food and nutrition sectors.
According to GlobalData’s 2023 Macroeconomics Database, most of Asia will age faster than the rest of the world.
Around 45% of Japan’s population will be over 55 by 2030, which is 25% above the projected global average. In Thailand and China, the figures are predicted to reach 34% and 33%, respectively.
“Thailand and China are predicted to witness a rapid surge in their older populations. And with countries the size of India and China, ageing populations in Asia are going to impact industries more so than anywhere else,” said Tim Hill, key accounts director for Southeast Asia at GlobalData. He was speaking at our Growth Asia Summit 2024 held in Singapore from 16 to 18 July.
Health and wellness – a priority for older consumers
The ageing demographic is leading to an increased focus on health and wellness. A quarterly consumer survey released in June found that Asian consumers are more willing to spend on health and wellness than their European and North American counterparts.
For example, 51% of older APAC consumers rank health and wellbeing as the third most important factor influencing their purchases.
There is also a growing demand for nutrients like electrolytes and prebiotics, with 48–56% of those surveyed viewing these as beneficial for health.
Asian consumers are also more concerned with ageing – globally, 14% of consumers are “extremely concerned” about the impact of diet on health and appearance, but this figure rises to 30% in Thailand, Singapore, Malaysia, and Vietnam.
Additionally, Asian consumers show a greater concern for health and fitness compared to their European counterparts. For example, 12% of Asian Boomers are concerned about health and fitness, compared to 9% of European Boomers. Among younger Asian consumers, up to 30% share this concern, compared to just 14% in Europe.
These developments indicate opportunities in the food and nutrition spaces, but brands first need to understand the motivations that influence purchasing behaviour among older consumers in Asia.
Affordability – a key influencer
About 53% of those aged 65 and above ranking affordability as one of the top three considerations when making purchases.
While the Gen Xs and Boomers have greater disposable income compared to the younger generations, they developed frugality due to less affluent circumstances in their growing up years – most of Asia had experienced the war in the 1940s, and economies were less developed during the time when older generations entered the workforce.
Their price-conscious habits have led to lesser financial concerns in their later years – 17% of Boomers are concerned about their financial situation, while more than 35% of Gen Zs and Millenials are concerned about the same.
Given the greater willingness among Asian consumers to spend on health and wellness, older generations are likely to invest in quality products when they need to. Brands should consider this in their product development and marketing strategies.
Frugality has also driven older consumers to adopt next-generation shopping habits, such as using digital tools to find the best prices and make purchases online.
Digitalisation can offer smart solutions
Digitalisation, therefore, emerges as another key trend influencing older Asian consumers.
Boomers and Gen Xs in Asia are more advanced in digital use compared with counterparts in Europe.
About 71% of the APAC silent generation has some understanding of AI, which is at the same level as the European average, and higher than their European counterparts by 6%.
Asian consumers are also more willing to share biometric data for a personalised product or service – 32% of APAC Boomers are willing to do so, compared to 25% of their counterparts in Europe.
“Smart watches and phone apps measuring health are gaining ground with older consumers, creating business opportunities. Digital solutions can therefore create further opportunities for additional product development or brand extensions to better meet their needs, one of which includes staying in their comfort zone,” said Hill.
Due to emotional factors like nostalgia and entrenched habits, there is resistance to change.
Desire to stay within the comfort zone
None of the Silent Generation surveyed were willing to try new flavours, and only 7% of Boomers were open to doing so. This contrasts with Gen Zs and Millennials, where 33–35% are willing to explore new experiences.
Hill also observed scepticism among older APAC consumers, reflected in their reluctance to try new products and their distrust of multinational brands. Trust in multinational brands declines with age among APAC consumers – only 7% of the Silent Generation and 22% of Boomers trust sustainability claims made by multinational brands, compared to 24% of global consumers and 33% of Asian and Australasian consumers.
“Brands need to put in more effort to earn and retain the trust of older generations, as these consumers tend to be more risk-averse. However, they are highly motivated to maintain their quality of life,” said Hill.
He emphasised that Asian consumers have unique needs and demands compared to those in other regions, adding, “Older generations represent a growing consumer group that requires a sensitive approach. As consumers age, their demands and needs evolve, and brands must adapt by tailoring their products accordingly.”
