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 (their own or their parents’), real estate and maintaining a fulfilling lifestyle.
Embodi, a Chicago-based beverage maker, has boomers in its sights. Its marketing strategy: Sell all-natural, antioxidant fruit juices that promote a stronger immune system and weight loss. Embodi juices, with invigorating names like Tropical Revival, Berry Renewal and Citrus Resurgence, started showing up in 260 Whole Foods Market locations across the country in June. Embodi chief Daniel Waters figures his company will pull in $500,000 in revenue by year’s end and turn a profit within the next two years.