World's over-60 consumers now spend $18.7 trillion a year

Consumers aged 60 and over already drive more than a quarter of global spending, and that share is set to rise as the population ages and older adults keep spending at high levels. World Data Lab says the U.S. dominates the silver economy today, while Asia-Pacific and emerging markets are poised for the fastest growth by 2036. Why it matters: - Consumers aged 60 and over already account for $18.7 trillion in annual spending worldwide, or 26.4% of global consumer spending. - World Data Lab projects that total to reach $34.2 trillion by 2036, making older adults an even larger force in retail, health, finance and travel. - The U.S. alone represents 36% of global silver-economy spending, so any global strategy for older consumers has a major American exposure. What happened: - World Data Lab released analysis showing that the global 60+ population is now 1.24 billion and will grow to 1.61 billion by 2036. - Spending by people 60 and older has nearly doubled from $9.7 trillion in 2016 to $18.7 trillion today. - The group’s share of global consumer spending rose from 22.2% in 2016 and is projected to hit 29.8% by 2036. - The average person over 60 spends about $15,200 a year, roughly 75% more than the global per-capita average. - In the U.S., people over 60 spend $6.7 trillion a year, equal to 36% of global silver spending and about four times the size of China’s entire 60+ market. The details: - The average U.S. consumer over 60 spends $77,345 a year, making the age group the highest-spending cohort in the country. - Cape Coral, Florida is on track to become the first U.S. city with more than 300,000 people to get over half its consumer spending from residents aged 60 and over. - Cape Coral is already at 47% and is projected to reach 51% by 2036. - Spending by older adults is shifting toward health products and services, beauty products and financial services. - North America and Europe are the largest silver markets today. - Asia-Pacific is the fastest-growing region and is projected to nearly match North America in size by 2036. - China and India together are expected to add about $3.5 trillion over the decade. - The wealthiest 8% of the over-60 population account for 43% of spending globally. - In the U.S., higher-income households drive 77% of spending by people over 60. - Baby Boomers account for 74% of 60+ spending today. - Generation X is expected to overtake Baby Boomers around 2036 as a major force in the silver economy. - Global life expectancy at birth has reached 73.3 years, up 8.4 years since 1995. - The United Nations projects life expectancy to rise to 77.2 years by 2050. - The population aged 60 and over is growing more than three times faster than the population as a whole. - World Data Lab says the market for products and services designed specifically for older adults is already worth $4.5 trillion. Between the lines: - The spending boom is not only about more older adults. It is also about older adults controlling more wealth and spending it longer. - Longer lives are creating new demand patterns, especially in longevity health, senior living, travel and financial services. - NielsenIQ’s Sherry Frey said more than half of Americans over 60 feel younger than their age, and most want to age better than their parents did. - That mindset is helping fuel demand in health, beauty and wellness, while older consumers also shop more deliberately and stay in the workforce longer. - The data suggests brands that treat 60+ consumers as one declining segment may be missing the fastest-growing opportunity in consumer markets. What’s next: - World Data Lab expects the 60+ population to keep expanding and its share of consumer spending to approach nearly one in three dollars worldwide by 2036. - Asia-Pacific and emerging markets should contribute more of the growth, even as the U.S. remains the single biggest market. - The report points to a larger commercial opportunity around products and services tailored to aging populations as longevity rises. The bottom line: - The silver economy is no longer a niche. It is one of the biggest and fastest-growing consumer markets in the world.