Series Factoid #1: The 2020 Consumer: Projected Population by Age Group Percent Growth 2015 to 2025
This is a first in a series detailing how the projected shifts in population will determine the Furniture industry’s target customers in the next 5 to 10 years.
The children of the Baby Boomers, the Millennials, are entering their 30s and will slowly feed the furniture industry for the next 20 years. Not surprisingly, Baby Boomers turning 65 in the next 10 years will facilitate a dramatic increase in the 65 and over age group . Their growth will skyrocket 37.8% - increasing at a rate of 3.3% a year from 2015 to 2025.
Combined, the 25 to 44 year olds are projected to increase 10.4% over the next decade. Note that consumers ages 35 to 44 spend the most on home furnishings per household of any group.
Meanwhile, the tail end of the Baby Boomers , the 45 to 54 year olds, who have been the highest populated group over the last ten years, will now house much of the Baby Bust generation and are estimated to drop (-5.7)% by 2025. These high earning consumers have historically been key purchasers of upper and premium furniture. While projections for Ages 55 to 64 show a growth of 5.2% by 2020, these final Baby Boom numbers are expected to drop (-3)% by 2025.
The youngest segment, ages 15 to 24, is due to remain flat over the next five years and decline (-1.2)% by 2020.
*Source : U.S. Census Bureau, Projections of the Population of the U.S.