Changes in Age-Income Demographics Good News for Wool
September 28, 2012
The implications of age-income demographic changes within the United Kingdom, Germany, France and Italy are profound for finer wools, according to a report published by Australian Wool Innovation.
This report states that, on average, in the next five years, the Big Four consumers' income is forecast to increase by 10 percent where significant increases will be seen in the 50+ age bracket, with 65+ set to increase by 14 percent. At the same time, population growth in the 50+ categories will magnify the purchasing power of these consumer groups.
The trend in ageing population and rising income for the Big Four consumer markets is going to deliver a much needed drive for apparel wool demand in Western Europe. The increase in demand will be mainly driven by the increase in disposable income, rising number of luxury consumers and the consumer market as a whole trending towards quality rather than fast fashion. In general a person's income rises with their age, for example a 55 year old is expected to have a higher disposable income than a 20 year old. Also, younger consumers tend to focus on fast fashion while older consumers place a stronger emphasis on quality and luxury.
Reprinted in part from Australian Wool Innovation Market Intelligence