The global population is aging. Life expectancy keeps going up, and birth rates keep dropping. According to the World Health Organization, by 2030, one in six people worldwide will be over 60. By 2060, that population will double. When I studied population pyramids in school, an inverted population pyramid was always looked at through a negative lens, reflecting the least productive societies with the lowest economic growth. They meant a higher dependency ratio, where the reduced labor force has to support the economy by paying higher taxes for public retirement plans and healthcare, while also being responsible for the day-to-day care of an ever-growing population of elders.
While parts of this are still true, we must realize that demographics are a bit more complex. There are other factors to consider when the “aged” population is living longer and, in many countries, has most of the wealth. As companies shift and innovate to appeal to this new source of economic activity, the “silver economy” has emerged.
Adapting to an Older, Wealthier Consumer Base
The silver economy refers to all activities relating to a more mature population. It looks at the opportunities that aging presents, not only the issues. Nowadays, Gen Z tends to drive most digital trends because many companies are under the misconception that they are the only ones who shop online. Despite challenges adapting to the digital era, older people have, in fact, become very engaged online. As of 2023, mature consumers account for a quarter of global spending and have proven equally willing to shop online and in-person.
Credit: Max Roser from OurWorldinData.org, CC BY 4.0, via Wikimedia Commons
Rethinking Consumer Capture
We are already seeing some companies increasingly targeting products at older generations in response. In Japan, a diaper manufacturer has shifted production from baby diapers to adult diapers, a clear sign that consumption patterns are changing as people live longer and have fewer children. The number of products and services relating to cognitive stimulation has also grown. Some toy makers are even changing focus entirely from children to older adults, acknowledging that seniors want engaging, not infantilizing, entertainment.
The Global Coalition on Aging reaffirms that today’s older adults are digitally active, curious, and open to new products. As mature consumers are a cohort with very strong brand loyalty, targeting them should drive growth not only in health-related industries, but also in travel, fashion, online services, and technology. If companies can achieve the goal of catching this increasingly large and influential generation’s interest, they will have a recurring customer, bringing a new appeal to the older demographic.
We Will All Be Silver One Day
It is inevitable that the rise in the older population will produce a shift in market demographics worldwide. It is yet to be seen if the market will respond with strategies that make it possible to age gracefully and in comfort. Accepting the rise of the silver economy by supporting initiatives such as older people‘s associations and promoting intergenerational action is likely to be the best choice of action. The market that once centered young consumers must now evolve: designing for older adults will be essential for economic resilience and long-term sustainable growth.
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