Statistics recently released by the National Records of Scotland (NRS) demonstrated that Scotland’s population is reaching a record high, with improvements in health care contributing to increased life expectancy rates.
An ageing population is set to bring both opportunities and challenges, attendees heard from a leading business expert at an event in Aberdeenshire yesterday.
The Grampian Food Forum event, which took place on Tuesday, September 15 at Dean’s of Huntly in Aberdeenshire, was jointly hosted by the Royal Bank of Scotland (RBS) and Scottish accountancy and business advisory firm, Johnston Carmichael. The event saw senior economist at RBS, Sebastian Burnside, highlight the changing factors affecting consumer spending in Scotland, and the benefits which will arise for businesses as a result.
During his presentation, Mr Burnside discussed the perception that Scotland’s ageing population would have a negative impact on the economy, and challenged this by outlining the opportunities for increased revenue these changes will bring, particularly for businesses operating within the hospitality and food and drink sectors.
Mr Burnside said: "Serious debate is taking place around the impact of an ageing population upon the UK food and drink sector and businesses as a whole. The senior population are seen to typically have higher spending power, and more likely to spend their savings on eating out, or on more luxurious food and drinks brands.
"We are experiencing significant change - and not necessarily negative. Twenty years ago, around 1 in 3 pensioners in Scotland lived in relative poverty but since then the poverty rate for pensioners has plummeted, with around 11% classed as living in poverty today.
"Our research is also showing that the impact of an ageing population is creating geographical divisions. Comparisons between UK areas show that our cities aren't exposed to the change in the same way. In fact, in some cities, such as Glasgow, the shift is hardly noticeable compared to the effect on other rural areas."
Graeme Fraser, partner at Johnston Carmichael, said: “With 2015 marked as the Year of Food and Drink, the spotlight has been firmly positioned on Scotland’s businesses operating within this sector, and the opportunities for future growth.
“The negativity surrounding the rise in life expectancy rates across the UK has been widely discussed, however there are clear opportunities for businesses to realise the potential this trend presents and tailor their offering to suit a mature market.
“Johnston Carmichael works with over 850 businesses in the food and drink and hospitality sectors, and teaming up with RBS to bring this event to the North East has allowed us to share our vast expertise of the industry with those looking for business or financial advice surrounding this relevant topic.”
Further speakers at yesterday’s event also included:
- William Dean of Dean’s, who covered the journey of the Dean’s brand through its forty year ‘History in the Baking’ industry.
- Scott Kelman of Dean’s gave an overview of how the business has continued to review and develop the Dean’s brand, stretching it into new product areas and developing new markets internationally. Scott also gave background to and a preview of the company’s latest brand refresh to be launched in 2016.
- Campbell Laird, branding expert at threebrand has worked with Dean’s for close to 20 years. He gave an insight into brand thinking and in particular the Dean’s brand.