Demographic Trends and Their Impact on Industries

This assignment explores the impact of demographic trends on various industries such as tourism, cosmetic, and pre-cooked food. It also discusses other demographic trends affecting industries such as urbanization, immigration, and female solo travel.

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Title: Demographic Trends
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Executive Summary
The demographic trends have to be dealt with positive approaches and for this it is very
important to understand the demographic aspect of the market. This assignment will help in
gaining deeper knowledge about different demographic trends and their impact on various
industries. The learning helps in understanding the different factors which are responsible for
the decision of the consumer and teaches a lot about consumer behavior. This assignment
also helps in noticing the changes which the industries should acquire for their bright future.

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Contents
Introduction................................................................................................................................3
An Understanding of Different Demographic Trends...............................................................3
Vacation in Australia & New Zealand...................................................................................3
Cosmetic.................................................................................................................................5
Pre-Cooked Food....................................................................................................................6
Other Demographic Trends Affecting Industries...................................................................7
Conclusion..................................................................................................................................7
References..................................................................................................................................8

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Introduction
The demographic aspect which is considered as a major part of market selection has
witnessed various changes, which have massively affected various industries. The age factor
of the demography has gone through a complete transformation in the last decade. The
importance of different age groups and their needs have been the driving force for many
companies to change their traditional ways of working and adopt new strategies to overcome
the change which was brought due to the demographic trends in the market.
An Understanding of Different Demographic Trends
In the recent times there have been a number of changes in the demography due to the
introduction of various trends which had brought changes in many industries. These changes
have affected the industries in both positive and negative ways. Some of the changes which
have been witnessed in certain industries are-
Vacation in Australia & New Zealand
The tourism industry in the recent past has witnessed some changes because of the
demographic trends which will have major implications for tourism, but there are certain
potential in these changes which promises great opportunities (Andersson, 2004). The
growing demographic trends like increase in population, urbanization, rise in life expectancy,
change in the structures of family, and migration have created some challenges for the
tourism sector but there are strong hopes of development too. The demographic trends that
have brought a change in the tourism sector-
 Present Longer Life Span of Senior Citizen.
The latest demographic trend which is affecting the holidays in Australia and
New Zealand is population ageing. It is a critical change which has been recognized
as a main driving force for the future demands of the consumer. The positive effect of

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this rise in the life expectancy is that due to the changing ratios in the tourism industry
there is a rise in the tourists who are above the age of 65, and it is rapidly growing to
increase, which displays that the tourism industry will witness impeccable
development. The negative effect of this rise in the senior citizen tourist is that the
tourism managers will struggle to position their products. They would not be able to
set their target market (Costa, 2000).
 The Baby Boomers Generation.
In Australia, the baby Boomer population is almost 25 percent of the entire
population and they have 53 percent of the nation’s wealth. The baby Boomer is the
people who are born in 1949. The positive effect of this trend is the baby Boomers
have immense wealth which they now want to spend in freely. The tourism industry
in Australia makes around $120 billion in a year through the baby Boomer. So the
economical factor is improving. The negative effect is the baby boomers are a mixed
bag of people so organizing tours and following them is very difficult with them as
they are very moody (Zuberi, 2001).
 Generation Y
The positive effect of this trend is the generation Y definitely plans a trip twice
a year. They need the relaxing break from time to time. They are the ones who have
increased the competition level in the tourism sector, who have to plan tours which
are economical. The negative effect of generation Y is they are millennial, who have
all the information about the current happenings so to influence them is very difficult.
Also in return they have the strong attributes, to influence others.
 Smaller Family Unit & Single-Adult Household.
The small family unit and single-adults belongs to the explorative tourism.
The main aim of this section of people is to form memories and build family bonds. In

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Australia, the focus on family values and bonds is very high so it is the easiest section
to deal. The negative effect of this trend is that they are very particular with their
approach and at times fulfilling those get very difficult as the main focus is on
children (Ediev, 2001).
Cosmetic
Once only considered as an industry which only caters to young people between the
ages of 25 to 40. The cosmetic industry has witnessed massive changes.
 Present Longer Life Span of Senior Citizen.
The cosmetic industry is affected by the senior citizen as the ratio of people
belonging to this category is very high, who use cosmetic products. The senior
citizens have affected the cosmetic industry and the trend of launching a numerous
variety of anti-aging cream is the biggest example. The companies have made them
their main target market with anti-aging creams (Griffiths, Matthews and Hinde,
2000).
 The Baby Boomers Generation.
The cosmetic industry has focused their anti-aging creams on the senior
citizens and the baby boomers too. But a negative impact of such strategies is the
cosmetic industry know about the huge wealth which the baby Boomer generation
possesses. Their strategies which are built for them are built around exploitation.
 Generation Y
This section of people has always been the main target audience of the
cosmetic industry. But with the advancement in the technology they have information
about various products so it is becoming difficult to convince them to buy a product,
which is the main negative impact on the cosmetic industry. The positive effect is all
the products which are launched have the main focus on generation Y (Hoem, 2008).

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 Smaller Family Unit & Single-Adult Household.
They are the most difficult market segment to convince for any new products.
They do not want to adopt changes and are very strong in their beliefs.
Pre-Cooked Food
Pre-cooked food has become the household favourites and the rise in this industry is due to
the acceptance which the society has shown towards them.
 Present Longer Life Span of Senior Citizen.
They have a very specific lifestyle when it comes to food. They believe in fresh
produce and have certain eating habits which have been developed over the years, so
convincing them to buy pre-cooked food or frozen food is a very difficult task. They
have an approach, which is based on assumptions that this type of food is not healthy
(Lappegård, 2000).
 The Baby Boomers Generation.
The baby boomers are experimental and moody. So, they have a mixed approach
towards the pre-cooked food industry. They will attempt to eat such type of food, but
the results can be uneven. The positive effect is their approach which is very
welcoming and they want to try new stuffs (Margot I. Jackson, 2009).
 Generation Y
They are the people who maximally buy pre-cooked food as they are attracted by the
different variety of food which is available for them in reasonable prices. Their
approach towards packed food is based on monetary values. The negative effect of
this trend is they have strong opinions which they display and which have the ability
to dismiss the product from the market.
 Smaller Family Unit & Single-Adult Household.

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Pre-cooked food and a single-adult household are best friends. They are inseparable
and are the biggest buyers of pre-cooked food. They are the easiest target to please
and that’s why they are the most profitable trend for pre-cooked food industry
(Shackman, Wang and Liu, 2012).
Other Demographic Trends Affecting Industries.
 Urbanization.
 Immigration.
 Female solo travel
 Food tourism
 Online shopping (Zaba, 2004).
Conclusion
After acquiring a deep understanding about the various demographic trends which are
due to the age factor, the market was shaken and are slowly adopting them with new
practices. The development which the tourism industry promises will be huge by 2030,
according to certain studies. The cosmetic industry has developed new strategies which focus
more on senior citizens and on the baby Boomer. The pre-cooked food industry still have to
apply new ways to extend their target market. The demographic aspect of selecting a target
market demands new plans and strategies, which will help in expecting such trends in a more
positive manner.

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References
Andersson, G. (2004). Demographic trends in Sweden. Demographic Research, 11, pp.95-
110.
Costa, D. (2000). Understanding the Twentieth-Century Decline in Chronic Conditions
among Older Men. Demography, 37(1), p.53.
Ediev, D. (2001). Application of the Demographic Potential Concept to Understanding the
Russian Population History and Prospects. Demographic Research, 4, pp.289-336.
Griffiths, P., Matthews, Z. and Hinde, A. (2000). Understanding the Sex Ratio in India: A
Simulation Approach. Demography, 37(4), pp.477-488.
Hoem, J. (2008). Preface: Childbearing Trends and Policies in Europe. Demographic
Research, 19, pp.1-4.
Lappegård, T. (2000). New fertility trends in Norway. Demographic Research, 2.
Margot I. Jackson (2009). Understanding Links Between Adolescent Health and Educational
Attainment. Demography, 46(4), pp.671-694.
Shackman, G., Wang, X. and Liu, Y. (2012). Brief Review of World Demographic Trends -
Trends in Age Distributions. SSRN Electronic Journal.
Zaba, B. (2004). Age at first sex: understanding recent trends in African demographic
surveys. Sexually Transmitted Infections, 80(suppl_2), pp.ii28-ii35.
Zuberi, T. (2001). One Step Back in Understanding Racial Differences in Birth Weight.
Demography, 38(4), pp.569-571.