Hispanics, Singles, Matures and Millennials Reshape Retail Market

International Dairy-Deli-Bakery Association report shows demographics are changing, impacting the way retailers market.

A new cultural mix is shaping the retail food market, according to the “What’s In Store 2012” report from the International Dairy-Deli-Bakery Association (IDDBA).

The burgeoning U.S. Hispanic population, in addition to single-person households, are steadfast forces in the grocery aisle. Active Baby Boomers and newly empowered Millennials are also a mushrooming presence in the market. At the same time, women and men are transforming gender stereotypes in retail.

“What’s in Store” is a secondary research trends report compiled from over 150 credible industry resources.

The U.S. Hispanic population was responsible for more than half of the increase in U.S. population from 2000 to 2010, the U.S. Census Bureau reported. That population growth will continue amid higher birth rates and steady immigration from this group. Hispanic buying power hit $1 trillion in 2010, and is set for a 25% climb to $1.5 trillion by 2015, according to The Multicultural Economy report from the Selig Center for Economic Growth at the Terry College of Business at the University of Georgia. Hispanic households spend more on groceries than the general population and tend to have larger families with nearly twice as many children under the age of 18. Hispanic consumers are more alert to in-store promotions and less affected by advertising and product placements.

Singles are another flourishing demographic. Single-person households have tripled in the last 30 years to 27% of U.S. households, outnumbering those of married couples with children, according to the U.S. Census Bureau. People are marrying later, if at all. And 45% of seniors are single, the U.S. Census Bureau found. The count of single households could see another boost as the economy rebounds if adult children living at home venture out on their own. For these reasons, single-serving packages and packages with fewer servings can cater to a sizeable market.

Mature populations, notably active Baby Boomers, are staying in the workforce beyond retirement age. Many are accustomed to an active lifestyle that requires steady income. Some lack retirement savings. Compared to other generations, Baby Boomers account for the largest share of sales across most product categories. Boomers break stereotypes of conservative older consumers. They are more active and health conscious than ever before, and seek shopping destinations that stock fresh, healthful foods.

Millennials, born between 1981 and 1995, have 11% more buying power than Baby Boomers did in their youth, according to an OMD study. They spend considerable time and effort researching prospective purchases and ferreting out deals. Perhaps this is because they came of age during the recession and are more inclined to be frugal. Millennial consumers are most often identified as tech-savvy, yet 57% of them hear about products and services for the first time via television, Yahoo survey data showed. Millennials crave authenticity, self-expression, affordability and quality in their product choices.

Men continue to shop more for their families as many males have been left jobless by the stagnant economy. Fifty one percent of men said they are the primary shopper in the family, according to Advertising Age. In effect, product marketing is more gender neutral, rather than being aimed at stay-at-home moms. The female consumer demographic is also shifting noticeably.

Women continue to assume a more assertive gender role, particularly in the work force. They’re not necessarily married or mothers—no matter their age—and bear children later in life than ever before, if at all. Women’s evolving social stratification alters the marketing and merchandising outlook for retailers. Advertisements are more gender neutral, and products for women of child-bearing age are not necessarily geared toward the wedded mother.

 

 

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