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Silver Economy: The Untapped Markets
- BRANDi
- Oct 1
- 3 min read
On this International Day of Older Persons, it is worth highlighting that there is still an untapped market with opportunities waiting to be unlocked in Asia: the “Silver Economy.” This refers to consumers aged 60 and above—a demographic with massive value potential. A new report from GISTDA shows Thailand is rapidly becoming an ultra-aged society, with the number of people over 60 reaching 13.6 million, now far outnumbering those under 15. Furthermore, according to the 4th Asia Pacific Silver Economy Business Opportunities Report, the value of the aging market in the region is projected to hit USD 4.56 trillion by 2025.
UNTAPPED MARKET IN THE ASIA PACIFIC
The silver economy's consumers have their own unique needs and wants when it comes to products. To properly address those demands, businesses must research and invest in key areas and trends that are likely to efficiently target their pain points or behavioral patterns. Six business trends have growth potential in terms of appealing to this demographic. First is healthcare, in which new forms of elderly care can be established, or improvements can be made to the existing ranges of such a service. Second is real estate, which can be adapted to include functions explicitly tailored to older people. Third are leisure and self-development activities such as tourism, learning craft products, and up-skilling activities, to which silver citizens are attracted. Fourthly, electronic devices—which much of the silver population avoids, as per data from Nielsen—can be improved with features such as tracking and medical devices for this demographic. The fifth trend can be found in legal consultation, as, according to the American Bar Association, people in this demographic tend to seek advice on legal matters such as living wills. Lastly, financial products such as reverse mortgages and insurance products tailored to the aging population will likely see an uptick as this demographic grows.
SOCIO-ECONOMIC IMPLICATIONS
Asian Development Bank estimates that by 2050, 1 in 4 people in the Asia Pacific will be over 60 years old, with the 60 and over population tripling between 2010 and 2050. With the demographic only projected to increase, significant socio-economic implications exist for countries in this region. Contrary to popular belief, Wunderman Thompson Thailand’s Forgotten Shopper 2021 Report research suggests that the silver generation remains open to exploring new challenges and wants to embrace more novel products and services. As many businesses and transactions have moved online after the pandemic, PHD Datalab reflects that the silver generation has also adapted to this change with a solid online presence. 98% access the internet via a mobile device, and 90% favor Facebook as their social media platform of choice. These statistics reflect how digital channels are crucial in reaching this demographic.
The silver generation should be viewed as a potential consumer demographic rather than just another demographic, representing a budding market segment that businesses should target. Moving forward, brands must recognize that the silver generation has a relatively higher average income, making them a prime target segment. Therefore, organizations should avoid further alienating the segment but focus on reducing existing generational gaps. Similarly, while healthcare is a major industry prime for targeting the silver generation, neglecting other areas or opportunities such as travel, finance, technology, and education is a mistake they should not make.
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