Population aging is a global demographic trend that is already having a huge impact on the economy. In most developed countries, the proportion of elderly people (60+) is steadily growing. According to UN forecasts, by 2050, every sixth person in the world will be over 65, and in Europe and East Asia – every fourth. Russia is no exception: according to Rosstat, about 25% of the country’s population are already of retirement age, and this proportion will continue to grow. This phenomenon is a consequence of increased life expectancy, decreased birth rates and progress in healthcare. Changes in the age structure of the population have a profound impact on socio-economic processes.
With the change in the age structure of the population, a new category of economy appears, which is called the silver economy. The term comes telemarketing data from the English name “ Silver Economy” and is formed as a reference to “silver” – a metaphorical designation of gray hair, a symbol of age and wisdom. This direction of the economy is focused on satisfying the needs of older people – aged 60 and above.
The silver economy includes a wide range of industries:
- healthcare and pharmaceuticals;
- digital and consumer technologies;
- finance and insurance;
- retail and tourism;
- architecture and urbanism;
- fashion and education;
- leisure, sports, nutrition and care.
The main postulate of this economy is that a mature consumer is not just “aging,” but an active, conscious, and solvent market participant . Older people increasingly remain active, work, travel, master new technologies, and care about the quality of their lives.
How the Silver Economy is Transforming Business
The changing age structure of the population has a direct impact on business processes and the development of entire sectors of the economy, changing the usual logic of development. Businesses are rethinking their strategies and product lines to adapt to the new reality.
Older consumers are more likely to need health care and preventive care, which is driving new trends in healthcare and pharmaceuticals:
- development of gene and cell therapies;
- telemedicine and health monitoring services;
- anti-aging biotechnology;
- functional food and nutraceuticals.
There is a growing demand for robotic technologies that make life easier for the elderly:
- smart watch with ECG function;
- companion robots (for example, the Japanese Paro, a robot seal that responds to touch and voice);
- smart home systems adapted to the needs of older users.
Banks and insurance companies are adapting products to older audience segments:
- individual pension plans;
- inheritance programs;
- insurance against age-related diseases;
- financial advice on capital management in adulthood.
The niche of “silver tourism” is growing – comfortable travel with medical support, educational tours, cruises and rehabilitation routes for adult patients, focused on increased comfort and safety combined with new experiences.
Retail and design are being adapted for an adult audience using
- Larger font on packaging and interfaces.
- Easy navigation through stores and websites.
- Packaging that is convenient for the weak motor skills of elderly people.
- Personalized service taking into account the habits and limitations of older clients.
- Implementation of a voice assistant for visually impaired people.
The fashion industry produces collections for people 60+ — taking into account ergonomics, style and comfort. IT companies create applications for health, blood pressure control, physical activity, and medication. Furniture manufacturers design ergonomic interiors focused on the comfort and safety of the elderly.
Prospects for the World Markets of the “Silver Economy”
The silver economy is not a temporary spam data phenomenon, but a sustainable transformation. The UN estimates that the market for goods and services for older people will exceed US$15 trillion in the next 30 years. Companies that ignore this trend risk losing a huge segment of consumers.
The silver economy in Russia is becoming increasingly important as the population ages. According to Rosstat, about 25% of the country’s population is aged 60 and over. This segment has significant purchasing power and activity, making it important for business.
In Russia, the silver economy has begun to develop actively, especially in the last 5-7 years. The stimulus for this was both demographic changes and the growing awareness of older consumers themselves.
Modeling agencies promote older models, breaking stereotypes about age and beauty. Educational projects are actively developing, helping older Russians master smartphones, the Internet and online services. Active longevity centers are being created not only in the capital, but also in large regions , and infrastructure is being developed: from a barrier-free environment in transport to ergonomic furniture and household appliances. Startups are appearing that target an older audience – from telemedicine to healthy food delivery.
How Businesses Can Adapt to the Age-Changing Consumers
Businesses should certainly take into account the characteristics of older consumers when developing products.
Products for mature customers should ai trends in it for the second half of 2024 take into account the characteristics of the audience:
- hearing and vision loss;
- slow reaction;
- cognitive changes;
- limitations in movement and motor skills.
When thinking about the interfaces of websites, mobile applications and products, choose:
- large and noticeable buttons and fonts (especially for the mobile version of the site);
- the ability to use voice assistants;
- contrasting color schemes;
- simplified instructions.
Marketing to an older audience requires a delicate approach without infantilization and stereotypes: mature people are not necessarily “grandmas with pies.” Show them as active, stylish, smart, and independent. When working on texts, simplify messages. This recommendation, by the way, is relevant not only for working with an older audience, but also for building easy interaction with young users. Avoid slang, complex wording, and visual overload. When building marketing for an adult target audience, do not make products and interfaces “for yourself,” test advertising on user groups, ask the target segment of clients.
Focus more on the value of the product. A mature customer responds sensitively to honesty, respect, and care. Show in your advertising and marketing the benefits associated not with consumption, but with the quality of life of your customers.
The older audience especially appreciates a personal approach and support. Offer personalized products for this segment of customers, based on an analysis of habits, needs, health, and lifestyle. Add to your products the ability for customers to communicate with a call center via a hotline, a personal consultant, or a chatbot for assistance.