Don’t forget Grandma and Grandpa!

Food marketers often forget a very important consumer demographic; that demographic - grandparents. With over 70 million grandparents and seniors age 55+ it is a tremendous market with unmistakable purchasing power. Moreover, that market is growing rapidly. The baby boomers are beginning to reach the 55+ age group, and that group will continue to grow over the next 15-20 years. Many parents are becoming grandparents for the first time around age 50 and are buying for their new grandchildren, in large numbers.

Grandparents are buying for two generations, and are becoming doubly important as a target market. “The Grandparent Economy, a grandparents.com report done by Peter Francese, founder of American Demographics, estimates they’ll spend $2 trillion on goods and services in 2009 - one-third of the nation’s total spend - and $52 billion of that will go to the grandkids.” Moreover, grandparent-led households are seen as emotionally ready and willing to help out younger households. Since households headed by 55-to 64-year-olds have the highest net worth of any age group, most grandparents under age 65 still work, and a majority (55%) don’t carry a mortgage, many are in relatively good positions.”

Marketers often pander to the youth markets as the most important demographic to target. Don’t forget about the buying power of the 55+ age group, because they represent 30% of all adults in the U.S. That’s A big number to forget, especially considering the financial power this group possesses.

Sources: Phil Lempert: Facts, Figures, and the Future: “Grandparents: the next hot market?” The Nielsen Company, and Food Marketing Institute.