Final answer:
Companies should focus on the growing older adult population, especially the 65 and older demographic, due to the shrinking 25- to 44-year-old population. The Baby Boomer generation, moving into the senior demographic, will be the largest group of elderly by 2030, making them a key market segment.
Step-by-step explanation:
Given that the 25- to 44-year-old population is shrinking, companies will need to target other age demographics to remain successful. According to the U.S. Census Bureau's population charts and trends, one can observe a significant growth in the population of older adults, particularly in the 65 and older age group. This group is subdivided into the young-old, middle-old, and old-old, with the young-old being generally healthier and more financially secure than previous generations. Furthermore, with the Baby Boomer generation now moving into the senior demographic, the population aged 65 and over is set to become the largest group of elderly people by 2030, which indicates a shift in the market focus for businesses.
To effectively tap into these growing segments, companies should shift their marketing strategies and product development to cater to the older demographics, such as those aged 45-54, 55-64, and especially the 65 and older group. This means paying close attention to the needs and preferences of these age ranges, including health care products, retirement planning, and age-appropriate lifestyle goods. As the poverty rates and overall population distribution change, the purchasing power of these age groups increasingly influences market dynamics, making them critical targets for business success in the coming years.