Demographic Aging and Market Transformation: Conceptualizing the Emergence of the Silver Economy
DOI:
https://doi.org/10.66203/econovia.01105Abstract
Population aging is transforming demographic structures worldwide and increasingly reshaping patterns of consumption, innovation, and market development. Despite growing interest in aging markets, existing research remains fragmented across demographic economics, consumer aging research, and service innovation studies, offering limited theoretical explanations of how demographic change generates systemic market transformation. This article addresses this gap by developing a conceptual framework that explains the emergence of the silver economy as a demographic-driven market ecosystem. The study integrates insights from consumer lifecycle theory, service-dominant logic, and innovation and market creation perspectives to clarify the mechanisms linking demographic aging with longevity-oriented consumption and service innovation. The framework proposes that demographic aging generates longevity-related needs that reshape consumption priorities, stimulate the development of age-adaptive service innovation, and ultimately contribute to the formation of interconnected market ecosystems supporting longer and healthier lives. By conceptualizing the silver economy as a systemic outcome of demographic transformation rather than a collection of sector-specific industries, the article advances a demographic perspective on market evolution and innovation. The framework contributes to marketing and management research by clarifying how demographic forces drive market formation and offers a foundation for future empirical research examining demographic-driven market transformation across industries and institutional contexts.
References
Acemoglu, D., & Restrepo, P. (2017). Secular stagnation? The effect of aging on economic growth in the age of automation. American Economic Review, 107(5), 174–179. https://doi.org/10.1257/aer.p20171101
Adner, R. (2017). Ecosystem as structure: An actionable construct for strategy. Journal of Management, 43(1), 39–58. https://doi.org/10.1177/0149206316678451
Bloom, D. E., Canning, D., & Fink, G. (2010). Implications of population ageing for economic growth. Oxford Review of Economic Policy, 26(4), 583–612. https://doi.org/10.1093/oxrep/grq038
Carstensen, L. L., Isaacowitz, D. M., & Charles, S. T. (1999). Taking time seriously: A theory of socioemotional selectivity. American Psychologist, 54(3), 165–181. https://doi.org/10.1037/0003-066X.54.3.165
European Commission. (2018). The silver economy: Final report. Publications Office of the European Union.
Granovetter, M. (1985). Economic action and social structure: The problem of embeddedness. American Journal of Sociology, 91(3), 481–510. https://doi.org/10.1086/228311
Kohlbacher, F., & Herstatt, C. (2011). The silver market phenomenon: Marketing and innovation in the aging society. Springer.
Lee, C., & Coughlin, J. F. (2015). Older adults’ adoption of technology: An integrated approach to identifying determinants and barriers. Journal of Product Innovation Management, 32(5), 747–759. https://doi.org/10.1111/jpim.12176
Lemon, K. N., & Verhoef, P. C. (2016). Understanding customer experience throughout the customer journey. Journal of Marketing, 80(6), 69–96. https://doi.org/10.1509/jm.15.0420
Liddle, J., McElwee, G., & Ritchie, R. (2020). Ageing populations and innovation ecosystems: The emergence of the silver economy. Technological Forecasting and Social Change, 155, 119977. https://doi.org/10.1016/j.techfore.2020.119977
MacInnis, D. J. (2011). A framework for conceptual contributions in marketing. Journal of Marketing, 75(4), 136–154. https://doi.org/10.1509/jmkg.75.4.136
Modigliani, F., & Brumberg, R. (1954). Utility analysis and the consumption function: An interpretation of cross-section data. In K. K. Kurihara (Ed.), Post-Keynesian economics (pp. 388–436). Rutgers University Press.
Moschis, G. P. (2012). Consumer behavior in later life: Current knowledge, issues, and new directions for research. Routledge.
Scott, A., & Gratton, L. (2021). The new long life: A framework for flourishing in a changing world. Bloomsbury Publishing.
Scott, A., Gratton, L., & Mendenhall, R. (2020). The longevity economy: Unlocking the world’s fastest-growing, most misunderstood market. Harvard Business Review Press.
United Nations, Department of Economic and Social Affairs, Population Division. (2022). World population prospects 2022: Summary of results. United Nations. https://population.un.org/wpp/
Vargo, S. L., & Lusch, R. F. (2016). Institutions and axioms: An extension and update of service-dominant logic. Journal of the Academy of Marketing Science, 44(1), 5–23. https://doi.org/10.1007/s11747-015-0456-3
Whetten, D. A. (1989). What constitutes a theoretical contribution? Academy of Management Review, 14(4), 490–495. https://doi.org/10.2307/258554
Yoon, C., Cole, C. A., & Lee, M. P. (2009). Consumer decision making and aging: Current knowledge and future directions. Journal of Consumer Psychology, 19(1), 2–16. https://doi.org/10.1016/j.jcps.2008.12.002
Downloads
Published
Issue
Section
Categories
License
This journal applies the Creative Commons Attribution 4.0 International License (CC BY 4.0), which permits unrestricted use, distribution, and reproduction in any medium, provided the original author and source are properly credited.
