Economy April 14, 2024 | 12:00 pm

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Consumers between the ages of 50 and 70, an unexplored engine in Latin American economies

Consumers in their 50s and 70s is a market with little competition

Boston— For the first time in the region, Boston Consulting Group (BCG) has analyzed the trends and behaviors of mature consumers, defined as those between the ages of 50 and 70. This study, which interviewed more than 1,500 people in Argentina, Chile, Colombia, and Peru, highlights the growing importance of this population segment, which is projected to experience the highest absolute growth by 2050.

Global mature consumer spending, which currently stands at more than $7 billion across a wide range of categories, is expected to increase by 23% by 2050, reaching more than $8.5 billion.

This spending breaks down into the following key categories: Vehicles: With an expenditure of $2.4 billion, demonstrating a strong inclination towards mobility and autonomy.

Leisure travel: Mature consumers spend $1.94 billion, prioritizing personal experiences and enjoyment.

Fashion & Accessories: With an expenditure of $800 million, this segment shows a continued interest in personal presentation and fashion trends. Online supermarket: The spending amounts to 770 million dollars, indicating an adaptation and convenience with digital shopping technologies.

Alcohol and skincare: These expenditures, at $400 million and $310 million, respectively, reflect an interest in wellness and personal care.

Contrary to prevailing stereotypes, the study reveals that mature consumers are high-value, accessible through digital channels such as social media – where 90% of them are active – and positively influence the purchasing decisions of younger generations.

A crucial finding is the identification of a sub-segment called “vibrant” mature consumers, which in Latin America is 20% of this age group and represents about 60% of total spending. This ‘vibrant’ group demonstrates an exceptionally high purchasing power, leading consumption in all the categories analyzed, with 72% in
investment products, 67% in online supermarkets, and 61% in fashion and accessories, among others. This distinction underlines the enormous market potential that this subgroup represents for companies.

“Companies that manage to understand and meet the needs of this segment will not only expand their customer base, but also benefit from their loyalty and influence,” said Andrés Giraldo, Managing Director & Partner at BCG. “For too long, the
spending capacity and tendency of mature consumers to purchase more premium products and services has been underestimated. In addition, they are the segment of people who have the greatest loyalty to brands,” he concludes.

According to the study’s conclusions, the four main strategies that companies must implement to succeed with mature consumers are 1) identify and connect with the “vibrant” or high-value mature consumer, 2) design omnichannel customer experiences dedicated to mature consumers, 3) build trust to guide purchasing decisions, and 4) be honest and transparent so that at the time of purchase they opt for products with the best quality of life–higher quality.

This segment, far from being a sidenote in the market strategy, emerges as a fundamental pillar for sustained growth and innovation.

Companies that embrace this reality and adjust their approaches and strategies to engage these consumers genuinely will not only be leading a necessary change but will also be positioning themselves at the forefront of the economy of the future in our region.

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