Influential Baby Boomers Have Huge Impact on Today’s Retail Food Marketplace and Are Key to Marketing Strategies, According to New FMI White Paper Nov 26, 2002 WASHINGTON, DC — November 26, 2002 — The baby boomer generation is considered the most influential consumer segment for food products today and should be the most widely targeted by grocery retailers, according to a new white paper, The Generations in the Marketplace: A Closer Look at the Baby Boomer Market Basket, from the Food Marketing Institute (FMI). This paper was derived from data in the 2002 edition of FMI’s annual Trends in the United States: Consumer Attitudes & the Supermarket.The Generations in the Marketplace explores the shopping habits of American consumers between the ages of 38 and 56 — the most lucrative and changing demographic group to date. With approximately 50 percent of the total spending power in the United States — 40 percent of retail food sales — boomers spend an average of $84 a week at their primary grocery store, whereas other consumers spend only $77 per week.“Boomers are at the height of their income potential and are carefree in their shopping habits,” said Janice Jones, director of research at FMI. “This report shows that image and packaging are very important to this generation and should be emphasized in marketing messages. Food retailers should continue to work to understand and identify boomer needs.”Baby boomers are far more diverse than previous generations, particularly in terms of lifestyle, health, family size and income. According to Trends, nearly a quarter of boomers are dieting — 60 percent diet to lose weight and 45 percent do so because of a medical condition. Boomers are more active and health-conscious than their parents and place emphasis on products that make them “look and feel good.” While many baby boomers may decrease the size of their shopping baskets as they retire or as their generation X/Y children leave the home, they may purchase more high-end, gourmet and ethnic foods.Boomers also look for a variety of features in their ideal primary grocery store. On the top of the list for 89 percent of baby boomer shoppers is the availability of high-quality fruits and vegetables. Emphasis is also placed on store cleanliness, low prices, use before/sell by dates marked on products, and high-quality meats. Below this top tier of valued features, 60 to 79 percent of boomers value convenience, courtesy of employees, accurate price markings and money-saving specials. These demands contrast with those of generations X/Y — often referred to as “Time Challenged Consumers” — who place greater importance on fast checkout, fresh-food deli and special requests or needs.“Boomers tend to be loyal to their primary grocer,” said Jones. “On average, they have shopped at the same grocery store for 11 years and would rate it a 9 or 10 on a scale of 1 to 10. Retailers need to continue to provide the services that appeal to boomers and focus on what attracts and retains these valuable consumers.”Supermarkets have an increasing influence on the eating habits of American households. Since the events of September 11, 2001, there has been a significant rise in eating at home among all generations. Baby boomers are the leading consumers who favor home-cooked meals and eat an average of only one meal a week away from home.“The boomer market is a rapidly changing consumer segment that should be closely watched by food retailers,” notes Jones. “This generation will continue to favor high-quality and life-enhancing products at supermarkets. This report shows that retailers should strengthen their awareness of the needs of the boomer demographic to be successful in today’s economy.”To purchase The Generations in the Marketplace ($10 FMI retailer/wholesaler members; $21 associate members; $25 nonmembers) or for more information, please contact the FMI Store at 202-220-00723 or visit the FMI Web-site at www.fmi.org/pub.