This excerpt from the following IRI press release focuses on the Private Brand elements f the new IRI research
Latest IRI Baby Boomer Report Reveals $50 Billion Growth Opportunity for CPG Industry
IRI Study Uncovers how Recession, Age-Driven Lifestyle Changes and Health Issues are Impacting Baby Boomers
CHICAGO–(BUSINESS WIRE)–Representing half of total U.S. spending power, baby boomers are one the largest demographics in the United States. The oldest among this group are now 63 years old, and their purchase patterns are shifting as they approach retirement age. The latest IRI research, “Baby Boomers II: Preparing for the Upcoming Wave of Aging Shopper Growth,” examines the broad range of baby boomer lifestyle changes and identifies top-indexing food and non-food categories, recession-driven shopping patterns and key opportunities for private label and health and wellness products.
“Each baby boomer segment will experience a broad range of lifestyle changes in the coming years that will dramatically change where they shop and what they buy,” says IRI Consulting & Innovation President Thom Blischok. “Many retailer strategies today assume that boomers are a homogeneous group, and, as a result, their strategies are too general to be effective. The IRI report will help retailers understand current and future spending shifts of the different boomer segments across categories and channels. This approach will also help retailers develop strategies that effectively segment the boomer population in specific markets and meet their changing needs.”
Baby boomers—Americans born between 1946 and 1964—are a very large consumer segment with an age range that spans nearly 20 years. IRI breaks the group down into LBJ (aged 34-43), Kennedy (aged 44-52) and Truman Boomer (aged 53-62) segments to capture their distinct cultural experiences, current lifestyles and attitudes.
Private Label Performance
Even after the economy begins to recover, private label growth is expected to continue well into the next decade for boomers entering their 50s and 60s. A few highlights from IRI research include:
- 83 percent of Truman Boomers vs. 70 percent of Kennedy Boomers say store brands are of excellent quality. At the same time, 79 percent of the younger LBJs like store brands.
- 66 percent of Truman Boomers buy store brands instead of name brands.
- Truman Boomers purchase more private label bottled water, ice cream and snack nuts than younger boomers.
- The propensity to buy private label in food and beverages does not carry over to nonfood categories, including OTC medications.
“The IRI report offers fact-based support for impactful boomer shopper segmentation and other initiatives that retailers can implement across both traditional and non-traditional retail channels,” adds Seitzinger. “Retailers who leverage these new insights about baby boomer segments will reap the benefits with new center store growth.”
About the Report
“Baby Boomers II: Preparing for the Upcoming Wave of Aging Shopper Growth” is a culmination of research that includes an exclusive IRI AttitudeLink survey of shoppers, proprietary IRI InfoScan® and Consumer Network® data. For detailed information about the research’s availability and pricing, contact Sean Seitzinger at firstname.lastname@example.org