Composition of the American Population. Implications for Branding, Marketing, and Market Positioning in the American Market

What is the impact of the ongoing changes in the American population on branding, sales strategies, marketing, and product positioning in the American market?

It is appropriate to position the product with an eye on the new generations of American consumers - Millennials, Generation Z, and soon also Generation Alpha - to sell in the American market. However, the reality of demographic changes in America paints a more complex picture for the American market.

In America, the Baby Boomer generation represents 17.7% of the total American population, compared to 13% in 2010, and they are responsible for 22% of the total private consumer spending on goods and services in America [The same percentage was 15% in 2010]. Spending by Baby Boomer-led households has increased by 34.5% since 1982, compared to a 16.5% increase for younger households.

Therefore, we have a segment of American consumers, the Baby Boomers, with a strong spending power and a large share of disposable income, but they have tastes, lifestyles, and consumption patterns that are certainly not overlapping with those of Millennials or Gen Z.

They are certainly open to new things but not to an excessive degree; they use social media but do not rely on TikTok to find information about new products or market trends. And their number is expected to increase in the next 5-10 years, along with the rise in the number of Millennials and Gen Z.

This makes all the activities of branding, communication, marketing, and product positioning to enter the American market much more delicate because it requires taking into account a generational divide among American consumers that is only expected to grow in the coming years. Not to mention the fact that with an accumulated wealth of 7700 billion dollars, Baby Boomers in America are the best-positioned generation to withstand a potential economic recession.