Wednesday, June 12, 2024

Nestle, famous for its baby formula, actively targets the elderly market due to low birth rate and aging population

REUTERS

Business is changing according to population change. As the trend of low birth rate and aging population intensifies around the world, baby formula companies are looking for new businesses. Nestle, a global milk powder company with a 160-year history, also recently announced a position to actively target the elderly eating market by expanding its products targeting the elderly population.

On the 2nd (local time), Nestle CEO Wolf Mark Schneider told the Financial Times (FT) that developing meals for the elderly population has become a major priority. “The low birth rate is continuing for a long time around the world, and the number of people over 50 will increase significantly over the next 10 to 20 years,” he said. “There will be opportunities in the elderly eating market.”

Nestle, a global infant formula company, is prioritizing the food business of the elderly population due to the global low birth rate. As the fertility rate plunges and the population ages in earnest, it is judged that food for the elderly is more profitable than for children.

Nestle is focusing on developing products that maintain weight and muscles, supplement micronutrients, and regulate blood sugar, which are major concerns of the aging population. Even before CEO Schneider took office, he had invested in specialized nutritional foods such as protein powders, vitamin supplements, and reinforced beverages.

NESTLE

“We are taking opportunities for the middle-aged and older age groups as we walk away from the nutrition facts that we started in the past,” Schneider said. Last year, Nestle closed its milk powder plant in China, citing a drop in the birth rate. Last year, the country reported 2 million more deaths than births. “A few ventures have failed in China, including the acquisition of peanut milk brand Inlu, and market share has been lost. The past decade in China has been marked by numerous mistakes, so we have not been able to take the opportunity properly,” Schneider said.

Schneider determined that the increase in obesity treatments presented an opportunity for companies developing food for the elderly population. Studies have shown that people using GLP-1 weight loss drugs find it difficult to maintain their existing muscle mass. As a result, Nestle launched Vital Pursuit, an instant meal line tailored to GLP-1 users.

SALLY LEE

US ASIA JOURNAL

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