Contents:

Overview 1 Catalyst 1 Summary 1 THE FUTURE DECODED 5 INTRODUCTION: A growing Seniors population seeking functionality and youthfulness is worthy of serving with targeted personal care products 5 It is doubtful that the full potential of Seniors demographic has been realized in personal care 7 TREND: The population aged 50 plus is expected to continue expanding 8 Seniors are an important group due to their sheer number 8 Seniors account for a large proportion of US and European society 8 Growth in the Seniors population in Asia-Pacific and other emerging markets is commercially appealing 9 Rising median age confirms the aging of society 11 Rising life expectancy, declining mortality rate and decreasing fertility rate are the main contributors 12 The number and market potential of Seniors cannot be ignored 13 Key takeouts and implications: the world population is getting older 14 TREND: The Senior population grouping consists of several different sub-cohorts 14 The US: Differences among the GI generation, silent generation and baby boomers need to be recognized 15 Baby boomers entering the 50-plus cohort could bring fundamental change to how aging is defined 15 Japan: The dankai generation are re-defining the meaning of otona (adult) 17 Beyond demographic groups: understanding where the generations are from is the key to communication 19 Key takeouts and implications: consumers in the 50-plus cohort are not all the same 19 TREND: Seniors financial status heavily influences their purchasing behavior 19 Seniors are well attuned to the premiumization philosophy of less but better 19 Aging population and the impact on wealth: grow old and rich, or old and poor? 20 The financial status of the 50-plus cohort is affected by their family stage 21 The recessionary environment should be a cause for concern among the 50-plus population 21 Seniors appear to less concerned with the economic downturn than younger age groups 22 The housing market downturn is an issue for many consumers including Seniors 23 Seniors have cut their trading up in food and drinks according to Datamonitor research 25 The alcoholic drinks market has seen little premiumization in 2008 with Seniors greatly affected 26 Seniors up-trading is reasonably robust in personal care categories 28 Seniors may change certain aspects of their lifestyles less than younger adults in the current economic environment 29 Key takeouts and implications: the purchasing power of the 50-plus age cohort is varied 30 INSIGHT: Seniors personal care product choice drivers differ from other age groups 30 Compared with other consumer age groups, Seniors are less affected by price and promotional offers 31 Promotional offers are less important than price for all consumers 31 However, price is the most important factor in purchase decisions for Seniors personal care products 32 Natural ingredients are currently popular in personal care but Seniors have less favorable perceptions 34 Seniors are less likely to favor natural personal care products 34 Key takeouts and implications: anti-aging will remain the central growth opportunity in the skin care market 36 INSIGHT: Wellbeing and staying active are high on Seniors priority list 36 Many in the 50 plus cohort regard themselves to be healthy and pay attention to safeguard their health 36 Staying socially connected could contribute to maintaining psychological health 37 The "anti-aging" attitude may be the main driver of the 50 plus cohort staying healthy and active 37 Key takeouts and implications: the 50-plus cohort is leading a more active life compared with their predecessors 39 INSIGHT: Seniors believe skin care is vital in slowing the aging process 40 Usage of skin care products of the 50 plus cohort could increase as Baby Boomers enter this segment 40 Anti-aging is a leading feature among skincare products 43 Seniors want to age well rather than avoid aging entirely 44 Seniors feel under less pressure to look good 45 Products offering anti-aging effects are expanding from facial care to other product categories 46 When surveyed, Seniors show different skin care needs and concerns from younger age groups 47 Seniors are most likely to take action on skin dryness and wrinkles 48 The unaddressed skin care issues that concern Seniors offer commercial growth potential 49 Seniors care little about acne, skin tone and greasy skin 50 Spending on skincare may be curbed due to distrust in product claims and recession 51 Make-up products are more often used as a beauty-enhancing option among Senior consumers 52 Key takeouts and implications: Younger Seniors are more likely to use skincare products compared with later life stage Seniors 55 INSIGHT: Haircare is considered a less important part of looking good for Seniors 55 Seniors are less concerned about haircare compared with issues linked to other product categories 55 Hair colorants could be used more often as an appearance-enhancing product when younger Baby Boomers enter the age cohort of 55 plus 57 Key takeouts and implications: usage of hair care products is low among Senior consumers 62 INSIGHT: Fragrance and deodorants could be used as a means to enhance appearance among Senior consumers 62 Body odor affects perception of appearance 62 Usage of fragrances decreases slightly as consumers age, but this might change due to the youth-seeking practices of later-born Baby Boomers who are now entering the 50 plus cohort 63 Personal hygiene products with a youthful smell could help to combat the "aging odor" problem 65 Key takeouts and implications: concern about "aging odor" could be tackled by the use of fragrance and personal hygiene products 67 INSIGHT: Seniors value good oral care for general health and quality of life 68 Oral care is becoming more important, as the 50 plus cohort pursues a more holistic view of health 68 Seniors profess to being motivated by functionality in oral care 68 Plaque build-up should be a continued area of focus in Seniors oral care products 69 Industry research shows Seniors are motivated by dental aesthetics to some degree 70 Consumption of oral hygiene products among Senior consumers has scope for growth 70 Key takeouts and implications: oral care products have scope for growth in Seniors consumption 75 ACTION POINTS 76 ACTION: Make positive messages about aging and realistic role models core to appealing to the 50 plus cohort 76 Align products with Seniors attitudes to "healthy aging" rather than "anti-aging" 77 Seniors need to be able to identify with products, and products have to meet the special needs of Seniors 77 Glorify age as a badge of honor rather than try to hide it 78 ACTION: Make skin care a priority in targeting Seniors 79 Make personal hygiene the base for good skin care 80 Target specific age groups with tailored skin care products 81 Serve the appearance needs of Seniors as well as functionality 81 Appeal to male Seniors with rugged manliness 82 ACTION: Leverage functionality before appearance in oral care products 83 Use non-product specific societal marketing to improve oral health routines 83 Make plaque fighting the core of functional product attributes 83 Make gentleness a key feature of all oral care products 84 Make flossing more pleasant to encourage more Seniors to carry out this important dental task 85 Tackle Senior-specific oral hygiene issues such as dry mouths 85 Address the dental aesthetics needs of Seniors 86 ACTION: Address Seniors hair care concerns with age-specific ranges 87 Appeal to Seniors hair care concerns with hair-fortifying, age-specific formulations 87 Celebrate age across unified, comprehensive product ranges 87 APPENDIX 89 Additional data 89 Definitions 90 Methodology 91 Further reading and references 91 Online resources / databases 92 Ask the analyst 94 Disclaimer 94 List of Tables Table 1: Senior population (m) by country, US & Europe, 2002-2012 9 Table 2: Senior population (m) by country, Asia Pacific and emerging markets, 2002-2012 10 Table 3: Median age of world population across countries, 2002-2012 11 Table 4: Life expectancy, mortality rate and fertility rate across 18 countries in Europe, the Americas and Asia-Pacific, 1990-2006 12 Table 5: Consumer survey: level of influence on product choice exerted by various purchasing criteria, Seniors (Overall), in 15 countries across Europe, Asia-Pacific, South America and the US, 2008 33 Table 6: Consumption (US$ m) of skin care products among the population cohort aged 45 - 54 and 55+, Asia Pacific, Europe, Brazil and the US, 2007 42 Table 7: Market value of anti-agers products in facial care market (US $ million), Asia Pacific, Europe, Brazil and the US, 2003-2007 43 Table 8: Consumer survey: Seniors skin care concerns and current proactive responses by age and gender, in 15 countries across Europe, Asia-Pacific, South America and the US, 2008 48 Table 9: Consumer survey: Seniors skin care concerns and current non-reactive responses by age and gender, in 15 countries across Europe, Asia-Pacific, South America and the US, 2008 49 Table 10: Consumer survey: Seniors skin care absence of concerns by age and gender, Global, 2008 50 Table 11: Consumption (US$ m) of make-up products among the population cohort aged 45 - 54 and 55+, Asia Pacific, Europe, Brazil and the US, 2007 54 Table 12: Consumer survey: Seniors hair care concerns and current responses by age and gender, in 15 countries across Europe, Asia-Pacific, South America and the US, 2008 56 Table 13: Consumption (US$ m) of hair care products among the population cohort aged 45 - 54 and 55+, Asia Pacific, Europe, Brazil and the US, 2007 59 Table 14: Consumption (US$ m) of hair colorant products among the population cohort aged 45 - 54 and 55+, Asia Pacific, Europe, Brazil and the US, 2007 61 Table 15: Consumption (US$ m) of fragrance products among the population cohort aged 45 - 54 and 55+, Asia Pacific, Europe, Brazil and the US, 2007 64 Table 16: Consumption of personal hygiene products among the population cohort aged 45 - 54 and 55+, Asia Pacific, Europe, Brazil and the US, 2007 66 Table 17: Consumer survey: Seniors oral care concerns and current responses by age and gender, in 15 countries across Europe, Asia-Pacific, South America and the US, 2008 69 Table 18: Consumption (US$ m) of oral hygiene products among the population cohort aged 45 - 54 and 55+, Asia Pacific, Europe, Brazil and the US, 2007 72 Table 19: Consumption (US$ m) of mouthwash products among the population cohort aged 45 - 54 and 55+, Asia Pacific, Europe, Brazil and the US, 2007 74 Table 20: Consumer survey: level of influence on product choice exerted by various purchasing criteria, Early Seniors (50-64), in 15 countries across Europe, Asia-Pacific, South America and the US, 2008 89 Table 21: Consumer survey: level of influence on product choice exerted by various purchasing criteria, Late Seniors (65+), in 15 countries across Europe, Asia-Pacific, South America and the US, 2008 90 List of Figures Figure 1: External factors and Seniors attributes are key to the Seniors Personal Care market 5 Figure 2: Personal hygiene matters most to Seniors 6 Figure 3: Seniors are less likely to notice new products 7 Figure 4: Baby boomers lack of technophobia has contributed to the success of home entertainment technologies 16 Figure 5: Apple iPod is also popular among baby boomers 17 Figure 6: Media, including Internet websites and magazines, have turned their attention to the dankai generation and senior population in Japan 18 Figure 7: Seniors have felt less concerned by economic downturn in the first half of 2008 23 Figure 8: The housing market downturn is a concern for a third of all consumers 24 Figure 9: Mortgage affordability and smaller subsequent generations are now affecting Seniors 25 Figure 10: Seniors have traded up less than Young Adults in 2008 26 Figure 11: Seniors have been particularly slow to trade up in the on-trade in 2008 27 Figure 12: All consumers, including Seniors, have been keener to trade up when drinking at home in 2008 28 Figure 13: Personal care has been one of the markets that has most commonly experienced up-trading in 2008, but Seniors have lagged behind 29 Figure 14: Seniors have felt less concerned by economic downturn in the first half of 2008 30 Figure 15: Price is less of an issue in choosing personal care products for Seniors 31 Figure 16: Promotional offers have less effect than price on Seniors purchase decisions 32 Figure 17: Seniors are skeptical about the health attributes of natural personal care products 35 Figure 18: Seniors are more skeptical about the efficacy of natural personal care products 35 Figure 19: Elixir news may become just one of many websites devoted to anti-aging news and information 39 Figure 20: Consumers do not necessarily buy more skin care products as they age 41 Figure 21: Seniors are reasonably happy with their age 44 Figure 22: Consumer survey: Young Adults are more likely to feel pressure to look good rather than Seniors 45 Figure 23: Consumer survey: beauty advertisements play a significant role in Young Adults self-consciousness, but Seniors are largely immune 46 Figure 24: DermaLastyl-m products are specifically anti-aging targeted at a range of skincare needs 47 Figure 25: Everyday pricing is likely to be more popular than premium products during recession 51 Figure 26: Anti-aging performance is moving into more products 52 Figure 27: Consumers aged between 45 and 54 use more make-up products compared with those aged 55 and above 53 Figure 28: 55+ consumer use fewer hair care products compared with their population weighting 58 Figure 29: The usage of hair colorant products is higher among consumers aged between 45 and 54 60 Figure 30: Usage of fragrance products in consumers aged 55 and above could increase if body odor problem becomes widely recognized 63 Figure 31: The consumption of personal hygiene products decrease as consumers age 65 Figure 32: Usage of male fragrance shows that older men are concerned about the problem of "aging odor" 67 Figure 33: Senior consumers tend to spend more on oral hygiene products 71 Figure 34: The usage of mouthwash products among consumers aged above 55 is higher in Australia, Japan and US 73 Figure 35: 40+ dental products allude to the vagaries of age complexity 78 Figure 36: Linea Mediterranea Action 50 products are clearly marketed to Seniors 79 Figure 37: Ageless positioning can appeal to a wide variety of consumers including Seniors 79 Figure 38: Anti-aging is a product concept that is prevalent in the skin care category. 80 Figure 39: Age-specific products will appeal to Seniors if their functionality is similarly targeted 80 Figure 40: Few skin care brands are positioned to serve Seniors before age 50 and long after 81 Figure 41: Make-up is important to may women of all ages 82 Figure 42: Masculine solutions are essential for male Seniors 82 Figure 43: The build-up of plaque needs to be a core focus of oral hygiene products 84 Figure 44: Senior-specific toothpastes need to be milder 84 Figure 45: Convenient floss products are needed to convince more Seniors to floss 85 Figure 46: Senior consumers are more likely to suffer from a dry mouth 86 Figure 47: Teeth whitening treatments have growth potential among younger Seniors 86 Figure 48: Schwarzkopfs age-specific Bonacure range targets mature hair 87 Figure 49: Doves campaign for real beauty has paved the way for its Pro Age brand 88 Figure 50: Doves innovative marketing and product range now targets Seniors more actively 88