Series Factoid #2: The 2020 Consumer: Projected Population by Age Groups 2015,2020,2025
This is a second in a series detailing how the projected shifts in population will determine which age segments will have the highest numbers and who the Furniture industry should look to as it’s target customers.
Ages 15 to 24: Many of the Millennials will be aging out of the youngest of the future furniture purchasers, the 15 to 24 year old group, over the next five years. The group is expected to decline (-1.7)% by 2020 and remain relatively flat with 0.4% growth from 2020 to 2025.
Ages 25 to 34: As the Millennials begin to age into the young adult group ages 25 to 34, a projected rise of 6.3% in population by 2020 should cause the Furniture industry to take notice.
Ages 35 to 44: The largest spenders on home furnishings, the 35 to 44 year olds, are expected to have the highest growth among the key home furnishings purchasers– increasing 5.2% by 2020 with an additional jump of 7.7% by 2025. Combined 25 to 44 year olds are set to increase in number from 84.7 million to 93.4 million over the next decade – a gain of 10.4%. These younger adults will become the heart of the furniture industry.
Ages 45 to 54: These prime earners are projected to decrease (-5.3)% in the next five years and will ultimately shift from 43.1 million in 2015 to 40.7 million in 2025. The decline of these high earners will have the most negative impact on upper and premium price points.
Ages 55 to 64: While expected to jump 5.3% by 2020, Baby Boomers will age out of this group the following 5 years - resulting in a slight overall growth of 1.6% from 2015 to 2025.
Ages 65 and Over: As Baby Boomers begin to age, this age segment is expected to skyrocket 18% by 2020 and have a total increase of 37.8% for the entire decade.
*Source: U.S. Census Bureau, Projections of the Population of the U.S.