Summary of Research Findings

As birth rates decline and the population ages, the elderly are becoming an increasingly important customer base. The key to future marketing success is meeting the needs of this demographic, because its members are considered to have ample time and money.
This research analyzes market trends and the company initiatives aimed at attracting older adults. The analysis encompasses both sectors specific to the elderly, such as long-term care, rehabilitation, and housing, and general sectors, such as leisure, sports, and hobbies. It also examines distributor trends.

The senior consumer market nosedived during the pandemic but showed an apparent upward trend in 2022. By 2023, the market size was estimated to have returned to pre-Covid levels. By that year, social and economic activities had fully recovered, causing many sectors of the senior consumer market to grow. In 2024, the market appeared to be expanding, albeit at a slower pace.
Naturally, however, the recovery status differs by category. Rapidly rising commodity prices are a growing concern that could affect consumer activities. Some services have experienced an increase in market size due to rising merchandise unit prices and average customer spending, though without a corresponding increase in customer returns. Since the rise of commodity prices can heavily impact pensioners, it is important to pay attention to senior consumer trends, such as how much price increases these customers can tolerate.

Noteworthy Topics

Despite Rapid Recovery in Senior-Related Services, The Elderly’ Consumption Trends Can be Severe

Revisions to long-term care fee payments significantly impact long-term care and rehabilitation services for older adults. Frequent increases in these fees have led to the renewed expansion of this sector. In recent years, long-term care insurance systems have shifted their policies toward supporting home care to encourage self-sufficiency among the elderly. Consequently, home visit care, a type of home care service, has grown considerably.
However, many companies that entered this market sector have withdrawn, ceased operations, or been acquired by major companies through mergers and acquisitions. Due to serious labor shortages, fierce competition with major companies, and rising commodity prices, the long-term care and rehabilitation services sector is likely to undergo shakeout and reorganization.

The travel sector, which was hit hard during the pandemic, is experiencing a swift recovery. This trend is projected to continue through 2024.
The entertainment sector overall is showing a sharp recovery, resulting in exceeding pre-pandemic levels, as behavioral restrictions and facility entry limitations have been lifted. However, cinemas and karaoke room facilities are struggling.

Thus, market recovery conditions and concerns vary by sector. Nevertheless, the senior consumer market has recovered overall to pre-Covid levels. That said, many senior citizens are tightening their belts, due to their uncertainty regarding future pension amounts as well as their potential payments for medical and long-term care expenses.
Additionally, vagueness in the economy persists. Since around 2021, rising commodity prices have squeezed seniors’ household budgets. Although approximately 90% of the actual revenues of senior households are from social security benefits, most of these households spend more than they earn. They make ends meet by using their financial assets to supplement pension shortages.

In this context, the impact of rising commodity prices is enormous. It is no surprise that senior citizens are cautious about spending, striving to maintain their standard of living. The elderly are likely to be more selective when choosing merchandise or services. They will ensure that the products and services they choose meet their demand level and sense of value.

Research Outline