Bookkeepers and Mobile Bookkeeping Services

“Tomorrow’s consumers”, the latest AMP.NATSEM Income and Wealth Report released this month, estimates that by 2020 Australian households spending half as much again as they do today, and Baby Boomers ruling the roost.
How will this affect your business?

The report forecasts that total household expenditure on goods and services is projected to increase by 50 per cent from $406 billion in 2004 to almost $610 billion by 2020.

In the same period, the total number of households in Australia is expected to grow from 7.7 million to 9.5 million.

However, the report warns there will be major changes in the composition of those households, with more headed by older people and considerably fewer run by younger to middle-aged workers.

The number of households headed by someone aged over 65 is expected to increase by around 1 million between 2004 and 2020, to represent more than 25 per cent of all Australian households.

However, the over 65s will only contribute 15 per cent of total spending. These people just don’t need to consume as much as when their children were still at home, the report says.

By 2020, the number of children aged 0 to 19 years is likely to increase by just 58,000, compared to projected population growth of 3.1 million.

This baby bust will see reduced spending on children and will have profound implications for industry and the types of goods and services demanded by consumers. Rate of spending on snack and baby foods, toys and early childhood and education goods and services is likely to decline below the average.

Population ageing is also expected to have a major impact upon leisure-related spending. As the baby boomers enter a period where they want to have more fun, we can expect to see more of the “grey nomads” touring Australia.

Very active sports will become less popular but spending on health and fitness studios is expected to grow more rapidly than average spending, as baby boomers try to stay trim. Golf courses are likely to boom, with a projected 73 per cent increase in green fees.

There is also expected to be a boom in gambling, if the current preferences of older Australians continue into the future. TAB on-course betting is projected to increase four times faster than average spending, and lottery games and poker machines also expected to surge.

The more you know about your business, the better informed your decision

The market for health care goods and services is likely to experience the biggest growth. Household spending on medical care and health is expected to boom, up by 60 per cent by 2020.

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