Baby boomers and families – these will be Australia’s fastest growing social groups for the next seven or eight years at least, and therefore the place to look for future business opportunities.
So says Australia’s best-know demographer Bernard Salt from KPMG. For leisure travel, he believes the biggest driver will be the 70+ age group, aka the infamous baby boomers.
“For the past 65 years and probably longer the number of people added to the 70-something bracket expanded by no more than 20,000 per year,” Mr Salt recently wrote.
“That figure today is 60,000 and is headed for 100,000 within four years.
“Have you noticed the explosion in European river cruise advertisements showcasing a grey-haired couple clinking champagne glasses as they glide past Budapest Castle?
“Lifestyle and ‘reward’ travel, medical technology and succession planning are businesses to be in.”
Mr Salt also highlighted two other significant trends, both closely aligned.
One he has dubbed the ‘Great School Kid Surge’.
“Over the decade to 2020 the number of Aussie kids aged 5-17 will grow by 60,000 per year.
“A decade ago this growth was barely 2000 a year.”
These kids have to be housed somewhere so it follows another major trend identified by Mr Salt is the Household Formation Group aged 30-44 years.
“The number of Australians added annually to the household formation stage of the life cycle is currently 80,000, up from 2000 more than six years ago.
“Within six more years this segment will surge by as much as 100,000 in a single year.”
- Check out this video from KPMG for further details. It’s somewhat stilted and corporate but worth a look.