The 77 million Baby Boomers (adults aged 44 to 62) represent one-quarter of the U.S. population--and a whole lot more of its buying power.
Boomers generate $2 trillion in annual income, own more than 70% of U.S. financial assets and represent half of all discretionary spending, according to Age Wave, a San Francisco-based demographic-trend tracker. "Although marketers tend to pursue the youth market, that's not where the money is," says Age Wave founder Ken Dychtwald.
There are hundreds of ways entrepreneurs can tap this massive market--from small shops started on a shoestring to larger operations that require serious capital. Not surprisingly, hot areas in boomer-land include anything to do with health and appearance, real estate and maintaining a fulfilling lifestyle.
Boomers don't just want to look good, they want to feel great, too. Health-club proprietors that offer low-impact equipment and fitness classes in convenient locations stand to do well.
Boomers also crave convenience and options when it comes to maintaining active social lives. Errand services that tackle driving, cooking and maintenance come in handy.
If you have a serious appetite for risk and a few million to invest, try developing an "active adults" residence. These increasingly popular gated communities are aimed at boomers who want to stay active but would rather pay someone else to cut the grass and plow the snow. Residents also have access to organized events, such as hiking and canoe trips, cooking classes, community service projects and educational lectures.
Del Webb, a unit of
"There's clearly a market for this type of business," says Pulte Chief Executive Richard Dugas. "By 2030, we're expecting twice as many Americans to be over the age 55 as there are today. That's twice as many potential residents for us."
Source: www.Forbes.com September 10, 2008
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