Latin American populations are often considered youthful, yet the proportion of people aged 65 or over is growing. With falling fertility rates and increasing life expectancies in the region, this age group is expected to triple by 2050. The increase could strain economies, as the UN estimates that there will be three working-age persons for every elder by 2050 compared to eight in 2018.
What are the implications and challenges posed by this trend for marketers?
- An aging population will demand more healthcare and financial services.
- In contrast, a shrinking children population will need less investment on education infrastructure.
- A demographic bonus will mean higher consumption between 2018-2030. However, after the demographic bonus wanes, the region could experience chronic low economic growth and might need to open to imigration by the year 2050.
The region is not ready to face many of the challenges posed by an aging population. This means that there are plenty of opportunities to provide new products and services that address these challenges. Although most research projects are currently directed towards younger consumers (less than 45 years), some brands are already preparing for this major demographic shift. Is your brand ready?