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17.6.2010 Ageing Consumers to Reshape French Market

The ageing of the French population should heighten demand in a number of product categories, a trend that could be repeated across Western Europe in the future. According to a report by McKinsey, the average household in France will be "older, better educated, and less wealthy" in 2030 than at present.

The most senior member of a majority of French households is due to be 55 years old in 20 years time, the consultancy added. The typical individual in France is also set be 43 years old by this date, when the normal household will register an annual expenditure of e40,900 ($50k; £34k). Overall, this marks an increase from 36 years old and e27,300 respectively in 1980, and 40 years old and e34,700 in 2007. Elsewhere, the proportion of couples who live together is likely to fall from 75% to 58% in this period, with the density of children per household declining from 3.3 to 2.5 in the same timeframe.

Looking to the economy, McKinsey forecast GDP growth of 1.5% a year in France from 2008 to 2030, measured against the rate of 2.1% recorded between 1980 and 2008. However, domestic consumption levels, after accommodation and utilities, will fall from the average 2% rise of 1980 to 2007 to just 1.4% a year during the next two decades.

Consumers who are aged 55 or older are anticipated to account for 33% of the electronics market and 43% of the communications market in 2030, expansions of around 10% in turn on 2007. "To address changes in consumer behavior successfully, companies must innovate, including a focus on value and an increased interest in health and wellness," McKinsey concluded."Companies also should note the impact of rising digital connectivity - many French consumers, even as they age, will retain their attachments to communities and social networks."

B.L. 17.6.2010