"Senior citizens as drivers of economic growth"

Products and services designed to meet senior citizens' special requirements are a growth industry. In Germany, however, this industry is still in its infancy. That's the main conclusion of the "Senior citizens as drivers of economic growth" study conducted by Roland Berger Strategy Consultants. The study was commissioned by the German Federal Ministry for Family Affairs, Senior Citizens, Women and Youth.

Federal Minister of Family Affairs Ursula von der Leyen said in Berlin, "Companies are increasingly adapting to demographic change, but overall the senior citizen market is still very young. Germany cannot afford to leave this important future market to others. That's why our ministry is launching its initiative 'Senior citizens as economic factors – profitable prospects for companies'. With this program, we aim to support companies and at the same time empower older people as consumers."

At the presentation of the study, Dr. Burkhard Schwenker, CEO of Roland Berger Strategy Consultants said: "If we don't wake up now and take the older generation seriously as customers, we will suffer major drawbacks later. The German economy must realize more fully that senior citizens have enormous purchasing power.

Companies should focus much more on this aspect; otherwise, the competition will do so." He continued, "The demographic development in Germany is also an opportunity, yielding enormous opportunities for profitable growth through innovation. German companies should exploit these competitive advantages."

The new initiative "Senior citizens as economic factors – profitable prospects for companies" is intended to create closer dialog between businesses, scientists, consumer and senior citizen organizations as well as the senior citizens themselves.

The initiative will operate from its own premises. It will set up an information and cooperation exchange, offering a forum for dialog between scientists, consumer and senior citizen organizations as well as companies. Approximately four million euros in federal funds will be made available from 2008 to 2010 for this project. There is already a website, www.wirtschaftskraft-alter.de, to provide interested companies with useful tips and suggestions.

People over 50 are the target group of the future. Their share of consumption in 2035 will be 58%, while those under 50 will comprise just 42%. Those over 65 have the greatest growth potential. Their share of total consumption will increase almost by half from 18% to somewhat more than 26%. Today, people over 50 already consume at least 45% of all consumer goods, and for food, clothing and travel, the figure is almost 50%.