Packaged goods marketers should shift their focus from Baby Boomers to the 75 million Echo Boomers, according to research from Information Resources, Inc.
Most of the nation’s 78 million Baby Boomers have become empty nesters, changing their household purchase habits. Meanwhile, the 21- to 27-year-old Echo Boomers are setting up households of their own, making them the prime target for CPG marketing, per IRI’s Times & Trends report.
But Echo Boomers shop differently than their parents. They’re more likely to shop in supercenters, buy more private-label, more convenience foods, and more natural and organic products.
Echo Boomers with kids spend 23% of their CPG budget in supercenters, far above the average of 14% spent by all households with kids. (Echo Boomers without kids spend 17% of their dollars in supercenters, compared to 11% spent by all households without kids.)
To combat that, traditional grocers and drugstores should concentrate on Echo-friendly categories where supercenters are weak, such as beer, kids’ beverages and frozen foods, per IRI. Beer and wine becomes even more important as 40 million consumers reach legal drinking age over the next 10 years.
Manufacturers, meanwhile, should make sure their distribution matches Echo Boomers’ shopping patterns, IRI suggests.
Baby care becomes an increasingly important factor in choosing stores as more Echo Boomers have kids. “Retailers should consider baby supplies as a potential differentiator, while baby supply manufacturers should consider partnering with key retail accounts in the development of programs to attract young parents,” IRI advises.
Echo Boomers are also more likely to buy private label goods; retailers should look at their merchandise mix, especially in big-ticket categories.
This group also buys more natural and organic goods than the average household—another differentiator that could serve grocers looking to build Echo Boomer traffic.
“The impact of the Baby Boomer generation has literally transformed the industry, and now their followers—the Echo Boomers—are going to have a similar effect. Manufacturers need to take note of this phenomenon today, and begin investing in marketing and product development initiatives that resonate well with this segment’s lifestage and lifestyle,” said IRI Global CMO Janet Eden-Harris in a statement.
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