Vietnam’s seniors shows age no bar to consumption

Created 12 June 2019
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Elderly population is increasing but its purchasing power is set to grow the fastest of all demographics, a study has found.

Vietnam’s seniors shows age no bar to consumption

Around 12.4 percent of the population will be 65 or above in 2030 and number 13 million, a study released on Tuesday by market research firm Euromonitor showed.

This group’s purchasing power would grow by 5 percent a year until 2030, the highest rate of any age group.

"Older consumers feel, behave and want to be treated as younger," An Hodgson, a research manager at Euromonitor, said. "They want branding to focus more on needs, interests and values that include consumer experience, convenience, authenticity and novelty."

Euromonitor said older Vietnamese are particularly health conscious and taking control of their health and wellbeing. Branding needs to focus more on needs, interests, and values rather than age so as not to alienate this group of consumers, it added.

The aging population is one of three major trends in the country’s consumer market, the other two being a growing middle class and rapid urbanization, the study said.

The country would have an estimated 49 percent of households with annual disposable incomes of $5,000-15,000 by 2030, an increase from 34 percent last year, it said.

They will be spending more on food and beverages, housing and education, and prioritize experience over things.

While the population is price sensitive, the willingness to pay a premium for branded products deemed to be healthier or better quality is also seen, the release said.

By 2030 Vietnam will be the third biggest urban market in Southeast Asia by consumer numbers and fifth biggest by total spending.

The urban consumer market will expand to 46 million people and be worth $169 billion.

Urban households have high purchasing power and more demand for easy-to-reach consumer goods and services.   

Vietnam is an emerging economy with strong growth momentum. Its GDP is set to double from $245 billion last year to almost $500 billion in 2030.

By then it will be the fifth largest economy in Southeast Asia and 16th largest in the world.

 

Source: VNE

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