ExperimentalGerontology,Vol. 27, pp. 627-631, 1992
0531-5565/92 $5.00 + .00 Copyright© 1992 Pergamon Press Ltd.
Printed in the USA. All rights reserved.
Invited Editorial FOOD INDUSTRY
PERSPECTIVES
ON THE MATURE
MARKET
ROBERT G . M c V I C K E R Kraft General Foods, Northfield, lllinois 60093
INTRODUCTION THIS PAPER discusses the food industry's perspective on the impact of nutrition on what may be called the "mature market." By this, we mean individuals over 50 years of age. The food industry is working hard to understand the needs and wants of the mature market and to extend our knowledge base and development capabilities to better serve this growing segment of the population. The entire food industry now is still in the early stages of understanding these needs, The company with which I am most familiar, Kraft General Foods, appears to be far along as anyone, but overall, we have just begun. DEFINING THE MATURE MARKET A number of questions must be addressed: 1. 2. 3. 4.
Who are the people making up the mature market? What are their needs and wants? What kind of food products can the industry offer them or should be offering them? What can the industry do to bring them healthy, nutritious foods that meet their specific needs? 5. And how can the industry, at the same time, offer them better taste, greater variety, and more convenience?
The mature market has come to represent one of the most significant segments of the U.S. population. One out of every four Americans, more than 63 million people, is at least 50 years old. By the year 2000, less than a decade from now, almost one third of all Americans will be in the mature market. Average life expectancy in the United States has increased nearly 64% since the turn of the century. A child born today is expected to live almost 30 years longer than a child born in 1900. And the mature population, the over-50 group, is now the fastest growing age group in America. This will continue to be so for the next several decades as the baby boomers turn 50. As American culture recognizes the influence of this segment of the population, business has begun taking a closer look at a group that has largely been forgotten, and has learned a lot about them. 627
628
R.G. McVICKER
For instance, while it has long been known that the majority of the mature market is female, especially in the later years, the gap appears to be closing. Life expectancies for men and women are beginning to creep toward parity. Two-person households dominate the mature market through age 70. Interestingly, almost half of the members of the 50-60 age group are living in households with three or more people. This figure could increase as baby boomers delay starting families and find themselves in their late 50s and early 60s with children still at home. Most older men are married, but most older women are widowed, living alone. Despite a longer life expectancy than ever before, men still have a shorter life expectancy than women. Also, men tend to marry younger women. Men are more likely to remarry. And more widows are choosing to lead an independent lifestyle. The employment and retirement trends of the mature market are also quite interesting. Retirement is now an established institution enjoyed by most mature adults, rather than dreaded by them. The mature market represents significant financial influence and more economic power than the baby boom generation. While people over 50 represent only 25% of the population today, they hold 50% of the nation's discretionary income and 70% of the nation's net worth. One out of every three households age 50-65 earns more than $35 000 a year. For those under age 35, the ratio is less than one in five. Also, the over 50 group feels entitled to a certain amount of self-indulgence, and many members of this group have enough discretionary income to go ahead and indulge themselves. Mature adults show a strong commitment to spending on products and services that enhance their personal enjoyment of life. In fact, this may well be the first generation in history with the money and the will to redefine what the aging process means. REDEFINING AGING Biomedical research, and just plain observation, has shown, indisputably, that aging cannot be redefined. The immune system starts to decline by age 30. Metabolism starts to slow down around 25. Kidney and liver function decline. Blood vessels lose elasticity. Bone mass peaks at age 30 and drops about 1% per year thereafter. The senses fade. The epidermis becomes dry, the dermis thins. The quality and need for sleep diminishes. The brain loses about 20% of its weight, slowing recall and mental performance. These changes seem inevitable. But, research shows that the mature market is a very heterogeneous group; they are not all incapacitated or confined. As a result, the mature market is redefining the cultural and social aspects of aging--the quality of life and lifestyle issues. Research shows that today's mature market, not unlike their younger counterparts, shows a high degree of interest in fitness, self-enhancement, diet, and nutrition. They have a strong need to look and feel good, and they pay more attention to finding ways to relieve pressure and stress. They are as interested, or more interested, in travel, hobbies, and personal interests, and in keeping up with technology, national, and world events more than are their counterparts. They eat out more and they socialize more. BIOMEDICAL CONSIDERATIONS The accumulated information provides a profile of the mature market that is useful to both medical science and food science, and the areas where the two overlap. For example, older adults require fewer calories. Vitamin D inadequacies can pose problems for the
THE MATURE MARKET
629
housebound. Many companies in the food industry take these concerns into account in developing new food products and processes to meet the needs of the mature market. As a group, their utilization of several vitamins and minerals is less efficient than younger populations. But we need to do more to define the real nutrient needs for this age group. When it comes to health, the mature market often sets the trend. As has happpened in the past, yesterday's therapeutic diet has become today's recommended diet for people of all ages. What used to be considered a sodium-restricted diet for elderly patients with heart disease is now considered a dietary guideline for the general population. Likewise for cholesterol and reduced-cholesterol and fat-modified diets. It is to be expected that as the mature market grows in relative proportion to the rest of the population these influences will become all the more important. LIKES/DISLIKES Research has also shown that nutrient-dense foods are especially attractive to older adults. A Yankelovich study tells us that three out of five older adults report trying to avoid what they call "empty calories." Fruit is clearly the most popular snack among mature consumers, followed by cheese, raw vegetables, crackers, ice cream, and cookies. Among the most acceptable food products overall are foods high in fiber content, decaffeinated coffee, sugar substitutes, and soft drinks without caffeine. Least acceptable are saccharine, foods made from soybean, meats treated with preservatives, and imitation foods. Older adults are equally concerned about nutrition when they eat out, as they often do. Food quality is the number one consideration in choosing a restaurant, especially among those under 65. When eating in, older adults tend to spend less time preparing meals than formerly. This is not because of time constraints, but because they are simply tired of cooking, particularly for a smaller family. Thus, the more nutritious and convenient foods are, the more attractive they become to the mature market. Microwave ovens are near the top of the list of food preparation appliances owned by the mature market, and actually top the list of appliances people 63 and older would like to own. We expect microwave acceptance to increase over time as those who bought appliances while younger retain them and continue to use them into their mature years. At the same time, the mature market is not totally consistent. They are willing to experiment with social, non-nutrient foods that provide psychosensory eating experiences. That is, if it tastes good, they will try it. Ethnic foods will gain prominence as the Hispanic, Asian, and black populations age and as older people travel more extensively and are exposed to different cuisines. Finally, large proportions of mature adults are making an attempt to restrict their consumption of salt, cholesterol, fat, and sugar. SOURCES OF INFLUENCE Among those restricting consumption of a specific ingredient, generally no more than half are doing so because of a doctor's recommendation. This may reflect the influence of the popular press. Other media forms are also contributing to the general level of nutritional awareness among the mature market. For example, concerning product labeling, the older adult, even more than the population at large, is becoming attentive to the infor-
630
R.G.McVICKER
mation either on or missing from the product label. They have learned that a product marked "Unsalted" may still contain sodium from more than 65 other sources. They have begun to recognize that products that are cholesterol free may be relatively high in saturated fat. W H A T HAS THE INDUSTRY LEARNED? All in all, the older adult is becoming much more informed about the importance of good nutritional habits. The food industry, and specifically Kraft General Foods, has learned that nutrition is a key buyer-value of this group. Products that help promote good health--those with lower cholesterol and fat, fewer calories, lower salt, less sugar, high fiber content, and more nutrients like calcium--will be more appealing to the mature market. The industry has learned that taste diminishes with the loss of senses. Loss of taste can lead to loss of appetite, so food companies are working to modify and enhance the flavor profiles of many products. Easy-to-open packaging is a special concern for older adults, especially those with arthritis. Package graphics should also be simplified and clarified to compensate for gradual deterioration of vision, and as the ability to process information slows. More nutritional information must be made available on product labels. The industry has learned that portion control is important to older consumers. As appetite lessens and as family size declines, older adults become more attuned to avoiding waste, of either food or money. Smaller serving sizes, particularly among convenience foods, are essential. As Kraft General Foods, we believe that safe, healthful, nutritious foods are critical to good health. Our corporate mission reflects a commitment to continuously improve quality and assure that consumer safety, environmental soundness, and conformity to regulatory requirements are always achieved. This goal certainly applies to our focus on the mature market. Our Technology Group, that is, our Research & Development Group, which comprises some 1800 professionals worldwide, is driven by five simple goals that should enable us to better serve the mature market. We believe that: 1. 2. 3. 4. 5.
We We We We We
must must must must must
deliver healthy products. offer good tasting products. offer greater product variety. develop more convenient products. deliver good value with high quality.
In other words, we believe food must be healthful; it must be convenient; it must deliver all the quality, variety, and richness imaginable; and above all, it must taste good. In pursuit of these goals, we have devoted much time and resources to development of fat-free products. We know that when the fat is taken out of a product, a suitable replacement must be made in order to deliver the taste and properties of fats and oils, properties like texture, mouthfeel, flavor, meltability, and the like. Our development teams have applied fat-free technologies to a variety of product lines that are of special interest to older consumers. We have introduced fat-free Kraft American Cheese Singles, Kraft Free salad
THE MATURE MARKET
631
dressings, fat-free and cholesterol-free bakery products under the Entenmann's name, fatfree Sealtest frozen desserts, and low-fat meat products at Oscar Mayer and Louis Rich. Looking to the future, we are working on new generations of fat-free products to offer further decreases in the fat intake of the mature market, and, at the same time, improve the taste and variety of these new, healthy products. Work is underway on cholesterol removal from butterfat and eggs as well as reducing the level of saturated fat in vegetable oils we use. Our food processing engineers are working to deliver the convenience that the mature market wants. Developments in aseptic processing and packaging will produce high quality, shelf-stable, ready-to-eat foods. New microwave technologies will improve product quality and convenience as more and more of the mature market turns to the microwave as a viable alternative to traditional cooking appliances. We are also working on flavor enhancement technologies and aroma release technology for low-fat, low-sodium foods. Again, convenience, taste, and nutrition are important considerations for the mature market. CONCLUSIONS The foregoing demonstrates that food companies are working hard to develop healthy, nutritious food products that taste good and are good for the consumer. Customers in the mature market are demanding healthier food products, and the industry is doing everything it can to provide them with the products they want. We are all recognizing the importance of good nutrition to maintaining wellness into our mature years. With good food to aid in good health, aging is just like Mark Twain said it would be: "It's mind over matter. If you don't mind, it doesn't matter."
0531-5565/92 $5.00 + .00 Copyright© 1992 Pergamon Press Ltd.
Printed in the USA. All rights reserved.
Invited Editorial FOOD INDUSTRY
PERSPECTIVES
ON THE MATURE
MARKET
ROBERT G . M c V I C K E R Kraft General Foods, Northfield, lllinois 60093
INTRODUCTION THIS PAPER discusses the food industry's perspective on the impact of nutrition on what may be called the "mature market." By this, we mean individuals over 50 years of age. The food industry is working hard to understand the needs and wants of the mature market and to extend our knowledge base and development capabilities to better serve this growing segment of the population. The entire food industry now is still in the early stages of understanding these needs, The company with which I am most familiar, Kraft General Foods, appears to be far along as anyone, but overall, we have just begun. DEFINING THE MATURE MARKET A number of questions must be addressed: 1. 2. 3. 4.
Who are the people making up the mature market? What are their needs and wants? What kind of food products can the industry offer them or should be offering them? What can the industry do to bring them healthy, nutritious foods that meet their specific needs? 5. And how can the industry, at the same time, offer them better taste, greater variety, and more convenience?
The mature market has come to represent one of the most significant segments of the U.S. population. One out of every four Americans, more than 63 million people, is at least 50 years old. By the year 2000, less than a decade from now, almost one third of all Americans will be in the mature market. Average life expectancy in the United States has increased nearly 64% since the turn of the century. A child born today is expected to live almost 30 years longer than a child born in 1900. And the mature population, the over-50 group, is now the fastest growing age group in America. This will continue to be so for the next several decades as the baby boomers turn 50. As American culture recognizes the influence of this segment of the population, business has begun taking a closer look at a group that has largely been forgotten, and has learned a lot about them. 627
628
R.G. McVICKER
For instance, while it has long been known that the majority of the mature market is female, especially in the later years, the gap appears to be closing. Life expectancies for men and women are beginning to creep toward parity. Two-person households dominate the mature market through age 70. Interestingly, almost half of the members of the 50-60 age group are living in households with three or more people. This figure could increase as baby boomers delay starting families and find themselves in their late 50s and early 60s with children still at home. Most older men are married, but most older women are widowed, living alone. Despite a longer life expectancy than ever before, men still have a shorter life expectancy than women. Also, men tend to marry younger women. Men are more likely to remarry. And more widows are choosing to lead an independent lifestyle. The employment and retirement trends of the mature market are also quite interesting. Retirement is now an established institution enjoyed by most mature adults, rather than dreaded by them. The mature market represents significant financial influence and more economic power than the baby boom generation. While people over 50 represent only 25% of the population today, they hold 50% of the nation's discretionary income and 70% of the nation's net worth. One out of every three households age 50-65 earns more than $35 000 a year. For those under age 35, the ratio is less than one in five. Also, the over 50 group feels entitled to a certain amount of self-indulgence, and many members of this group have enough discretionary income to go ahead and indulge themselves. Mature adults show a strong commitment to spending on products and services that enhance their personal enjoyment of life. In fact, this may well be the first generation in history with the money and the will to redefine what the aging process means. REDEFINING AGING Biomedical research, and just plain observation, has shown, indisputably, that aging cannot be redefined. The immune system starts to decline by age 30. Metabolism starts to slow down around 25. Kidney and liver function decline. Blood vessels lose elasticity. Bone mass peaks at age 30 and drops about 1% per year thereafter. The senses fade. The epidermis becomes dry, the dermis thins. The quality and need for sleep diminishes. The brain loses about 20% of its weight, slowing recall and mental performance. These changes seem inevitable. But, research shows that the mature market is a very heterogeneous group; they are not all incapacitated or confined. As a result, the mature market is redefining the cultural and social aspects of aging--the quality of life and lifestyle issues. Research shows that today's mature market, not unlike their younger counterparts, shows a high degree of interest in fitness, self-enhancement, diet, and nutrition. They have a strong need to look and feel good, and they pay more attention to finding ways to relieve pressure and stress. They are as interested, or more interested, in travel, hobbies, and personal interests, and in keeping up with technology, national, and world events more than are their counterparts. They eat out more and they socialize more. BIOMEDICAL CONSIDERATIONS The accumulated information provides a profile of the mature market that is useful to both medical science and food science, and the areas where the two overlap. For example, older adults require fewer calories. Vitamin D inadequacies can pose problems for the
THE MATURE MARKET
629
housebound. Many companies in the food industry take these concerns into account in developing new food products and processes to meet the needs of the mature market. As a group, their utilization of several vitamins and minerals is less efficient than younger populations. But we need to do more to define the real nutrient needs for this age group. When it comes to health, the mature market often sets the trend. As has happpened in the past, yesterday's therapeutic diet has become today's recommended diet for people of all ages. What used to be considered a sodium-restricted diet for elderly patients with heart disease is now considered a dietary guideline for the general population. Likewise for cholesterol and reduced-cholesterol and fat-modified diets. It is to be expected that as the mature market grows in relative proportion to the rest of the population these influences will become all the more important. LIKES/DISLIKES Research has also shown that nutrient-dense foods are especially attractive to older adults. A Yankelovich study tells us that three out of five older adults report trying to avoid what they call "empty calories." Fruit is clearly the most popular snack among mature consumers, followed by cheese, raw vegetables, crackers, ice cream, and cookies. Among the most acceptable food products overall are foods high in fiber content, decaffeinated coffee, sugar substitutes, and soft drinks without caffeine. Least acceptable are saccharine, foods made from soybean, meats treated with preservatives, and imitation foods. Older adults are equally concerned about nutrition when they eat out, as they often do. Food quality is the number one consideration in choosing a restaurant, especially among those under 65. When eating in, older adults tend to spend less time preparing meals than formerly. This is not because of time constraints, but because they are simply tired of cooking, particularly for a smaller family. Thus, the more nutritious and convenient foods are, the more attractive they become to the mature market. Microwave ovens are near the top of the list of food preparation appliances owned by the mature market, and actually top the list of appliances people 63 and older would like to own. We expect microwave acceptance to increase over time as those who bought appliances while younger retain them and continue to use them into their mature years. At the same time, the mature market is not totally consistent. They are willing to experiment with social, non-nutrient foods that provide psychosensory eating experiences. That is, if it tastes good, they will try it. Ethnic foods will gain prominence as the Hispanic, Asian, and black populations age and as older people travel more extensively and are exposed to different cuisines. Finally, large proportions of mature adults are making an attempt to restrict their consumption of salt, cholesterol, fat, and sugar. SOURCES OF INFLUENCE Among those restricting consumption of a specific ingredient, generally no more than half are doing so because of a doctor's recommendation. This may reflect the influence of the popular press. Other media forms are also contributing to the general level of nutritional awareness among the mature market. For example, concerning product labeling, the older adult, even more than the population at large, is becoming attentive to the infor-
630
R.G.McVICKER
mation either on or missing from the product label. They have learned that a product marked "Unsalted" may still contain sodium from more than 65 other sources. They have begun to recognize that products that are cholesterol free may be relatively high in saturated fat. W H A T HAS THE INDUSTRY LEARNED? All in all, the older adult is becoming much more informed about the importance of good nutritional habits. The food industry, and specifically Kraft General Foods, has learned that nutrition is a key buyer-value of this group. Products that help promote good health--those with lower cholesterol and fat, fewer calories, lower salt, less sugar, high fiber content, and more nutrients like calcium--will be more appealing to the mature market. The industry has learned that taste diminishes with the loss of senses. Loss of taste can lead to loss of appetite, so food companies are working to modify and enhance the flavor profiles of many products. Easy-to-open packaging is a special concern for older adults, especially those with arthritis. Package graphics should also be simplified and clarified to compensate for gradual deterioration of vision, and as the ability to process information slows. More nutritional information must be made available on product labels. The industry has learned that portion control is important to older consumers. As appetite lessens and as family size declines, older adults become more attuned to avoiding waste, of either food or money. Smaller serving sizes, particularly among convenience foods, are essential. As Kraft General Foods, we believe that safe, healthful, nutritious foods are critical to good health. Our corporate mission reflects a commitment to continuously improve quality and assure that consumer safety, environmental soundness, and conformity to regulatory requirements are always achieved. This goal certainly applies to our focus on the mature market. Our Technology Group, that is, our Research & Development Group, which comprises some 1800 professionals worldwide, is driven by five simple goals that should enable us to better serve the mature market. We believe that: 1. 2. 3. 4. 5.
We We We We We
must must must must must
deliver healthy products. offer good tasting products. offer greater product variety. develop more convenient products. deliver good value with high quality.
In other words, we believe food must be healthful; it must be convenient; it must deliver all the quality, variety, and richness imaginable; and above all, it must taste good. In pursuit of these goals, we have devoted much time and resources to development of fat-free products. We know that when the fat is taken out of a product, a suitable replacement must be made in order to deliver the taste and properties of fats and oils, properties like texture, mouthfeel, flavor, meltability, and the like. Our development teams have applied fat-free technologies to a variety of product lines that are of special interest to older consumers. We have introduced fat-free Kraft American Cheese Singles, Kraft Free salad
THE MATURE MARKET
631
dressings, fat-free and cholesterol-free bakery products under the Entenmann's name, fatfree Sealtest frozen desserts, and low-fat meat products at Oscar Mayer and Louis Rich. Looking to the future, we are working on new generations of fat-free products to offer further decreases in the fat intake of the mature market, and, at the same time, improve the taste and variety of these new, healthy products. Work is underway on cholesterol removal from butterfat and eggs as well as reducing the level of saturated fat in vegetable oils we use. Our food processing engineers are working to deliver the convenience that the mature market wants. Developments in aseptic processing and packaging will produce high quality, shelf-stable, ready-to-eat foods. New microwave technologies will improve product quality and convenience as more and more of the mature market turns to the microwave as a viable alternative to traditional cooking appliances. We are also working on flavor enhancement technologies and aroma release technology for low-fat, low-sodium foods. Again, convenience, taste, and nutrition are important considerations for the mature market. CONCLUSIONS The foregoing demonstrates that food companies are working hard to develop healthy, nutritious food products that taste good and are good for the consumer. Customers in the mature market are demanding healthier food products, and the industry is doing everything it can to provide them with the products they want. We are all recognizing the importance of good nutrition to maintaining wellness into our mature years. With good food to aid in good health, aging is just like Mark Twain said it would be: "It's mind over matter. If you don't mind, it doesn't matter."
