Echo boomers next on tap.

There's no question that the 78 million Baby Boomers have transformed the CPG industry, bringing tremendous growth to marketers that tapped their needs. Now the 75 million Echo Boomers, currently those aged 10 to 27, are in position to help CPG manufacturers ride the next growth wave, according to Information Resources Inc.'s Times & Trends report, "Echo Boom Young Adults--The Next Growth Wave." The report urges manufacturers to target the older part of this group, the 21 to 27 year olds, who already head households and have become CPG purchase decision makers.

"Manufacturers need to ... begin investing in marketing and product development initiatives that resonate well with this segment's lifestage and lifestyle," Janet Eden-Harris, IRI's global chief marketing officer, said in a statement. "Manufacturers and retailers need to carefully track purchase behavior for their brands, categories and stores across Echo Boomer segments to effectively anticipate and capitalize on the tremendous opportunities ahead."

Currently, the supercenter channel captures a greater share of Echo Boomer CPG spending than that of the general population: Nearly 23 percent dollar share among Echos with kids versus nearly 14 percent for total households with kids; and 17.2 percent dollarshare among Echos without kids versus 11 percent for total households without kids.

The supercenters' one-stop shopping approach indicates that Echo Boomers are taking far less shopping trips. As a result, traditional supermarkets and drug stores must invest to build relationships with Echo Boomer consumers. IRI's report encourages these retailers to concentrate their marketing initiatives on high-spend categories, especially where supercenters have a below average share, including beer, kid beverages, and frozen food items.

According to the report, categories that focus on family living are best positioned for the greatest growth within the Echo Boomer demographic. Baby products--from food to diapers--in particular will be a major channel/store choice driver as more Echos start families. Kids, in turn, are a long-term growth opportunity.

On the food side, Echo Boomer adults are less likely than the general population to follow a specific diet, and are more likely to visit fast food chains. The segment also appears to be less concerned about chronic health issues. However, the report recommends that manufacturers strive to provide products that offer weight management benefits within the context of a balanced diet, allowing for a little indulgence. The majority of Echo Boomer adults also currently purchase natural and organic foods and beverages, and these products hold the potential to give retailers an opportunity for differentiation.

The executive summary for "Echo Boom Young Adults--The Next Wave Growth," is available at www.infores.com/public/us/newsEvents/thoughtleadership/tt_april_05.pdf

RELATED ARTICLE: TARGET ACQUIRED

SUBJECT: Echo Boomer

Age: 27

CPG PURCHASE DESICION MAKER: Yes

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