42 Degrees - Business from a different angle

Our population may be ageing fast, but that observation conceals a more complicated story. The truth is that some parts of the population are ageing faster than others while some segments are actually getting younger.

Government statistics suggest that the number of British people in their twenties is set to explode in the coming years. From seven-and-a-half million now, their numbers will swell to just under eight-and-a-half million within the next decade. It will be another quarter of a century before the size of that cohort returns to its current level.

One of the most marked characteristics of this group is that 60 per cent of them are currently single (i.e. either without a girlfriend/boyfriend or in a relationship but not yet committed enough to set up home together). That figure is poised to rise to 65 per cent by 2016, largely driven by the older end of the age group who are going to be increasingly reluctant to surrender their precious single status.

It means that the 'Friends fantasy' is shortly to become a reality for millions of young Britons. You may recall the early years of the US sitcom Friends, when twentysomething, young-free-and-single Rachel and her chums would all just hang out together having fun at Central Perk, avoiding any serious commitment, whether it was a proper job or a meaningful relationship? Somehow it just seemed implausible.

Fast forward ten years and shift the scene to the UK, and it would seem that this scenario was, and is, part of a growing sociological phenomenon that business ignores at its peril. It's big, it has massive implications for brands, and it's coming to a town near you soon. We're talking about 'the attack of the twentysomethings'.

For this group, being single no longer means being a sad, partner-hungry Bridget Jones type, miserably tucking into lonely TV suppers-for-one on Saturday nights. It is a positive lifestyle choice for those who want to make the most of their independence before the ties and responsibilities of family and relationships weigh them down.

Another major change is that half still choose to live with their parents. This is partly because they just can't afford to move out. But it is also because they enjoy the comfort of free meals, free accommodation and the fact that it boosts their disposable income for indulging the one they love most – themselves. Over half of them currently work, and only 19 per cent are still students.

It's 'me, me, me' all the way with this bunch of superannuated adolescents. But many companies do not realise what a rich seam this burgeoning and increasingly self-centred consumer group can be. As a consequence, say researchers, they are missing important marketing and positioning opportunities, either by just not targeting them specifically enough or, worse, positively discriminating against them.

Michael Florence, a strategist at Carat who has just completed an ambitious new piece of research into singledom, talks of the 'couplist society' that we live in. 'Most young single people feel that society is geared up to couples and families rather than to them,' he says. 'They feel discriminated against and that they are at a disadvantage when it comes to booking holidays, leisure activities and tax and financial products.

'Singles are the fastest growing area in the population, and yet very few brands actively target them, either through their products or their marketing communications.'

Florence believes there are numerous opportunities, particularly for FMCG companies, to captivate the twentysomething market and to start building loyalty with them.

Some are already starting to do so. Rare 'singleton innovator' products include Goodfella's Pizzas, which has launched Goodfella's Solos, a line of pizzas for one. IKEA, too, is starting to open up city-centre stores rather than out-of-town, family-oriented superstores, responding to the fact that 41 per cent of singles actually live alone.

But there are many more opportunities across the board. The surge of twentysomething singles creates an increased demand not only for accommodation and household items but also for mortgages, home entertainment and new technologies such as personal video recorders, some suggest.

Travel is another sector that could and should exploit the singles market. This is the biggest area that singles hate because of the 'single supplement' rip-off. There are companies that have begun to exploit the market, but these are often priced at a premium, so there is a real opportunity for a holidaymaker offering singles cheap holidays. Similarly, airlines could actively target singles rather than businessmen or holidaying families, setting aside certain flights or times of the week for people flying alone, branding experts recommend.

"All sectors could benefit from thinking about singles in their offering," says Florence. "Companies are just not tailoring their communications sufficiently. This freedom from commitment is invaluable to marketers."

The singleton innovator might also look at media opportunities in a more sophisticated way, recommend the experts. Saturday night television, for example, is very family-oriented, so the twentysomething singles advertiser might join forces with a particular channel, such as More 4, to develop singles-targeted content or sponsor a singles strand.

But trying to exploit this burgeoning consumer sector might not all be plain sailing, however, given that many young singles are unlikely to be awash with spare cash.

Molly Mackey, trend strategist at Corporate Edge, warns: "The image of young, independent people in their twenties living in trendy loft apartments with cash to spend could be somewhat misleading. Parents with troubled pension funds may not be able to help them out. This coupled with rising student debt means this market may not be that affluent and attractive. At the moment, being single and independent means being penalised. Everything costs more – individual portions, room supplements and day-to-day rent."

Mackey also recommends intelligent thinking on the part of businesses tapping into the market. "Being in your twenties doesn't mean you're looking for a club 18-30s holiday. These consumers are becoming more discerning. They'll look for bespoke, tailored offers where their individual needs have been carefully considered," she says.

Crucially, with more of them living alone, young singles will also be looking for offers that help them connect with others. "There's a need for 'social glue' – offers that deliver a sociable experience as well as a product – whether that experience is from a mobile phone, an online poker site or a coffee shop."

Tamar Kasriel, head of knowledge venturing at Henley Centre, sounds another note of caution, saying that any specially targeted company communication will have to get the tone right and avoid being patronising or pitying.

"It would be foolish of advertisers to think that the notion of being single is just a holding stage and that singles are just floating halves, waiting to become a couple," she says. "There is a lot of talk about single empowerment now and a revolt against the assumption that we are all aiming to be couples. Any communication with this age group has to be subtle and carefully nuanced."

For example, Kasriel notes that there are great opportunities for food manufacturers targeting the twentysomething singles market, but she suggests they avoid using the words 'single' or 'meal for one' in their labelling and reject single-use packaging in favour of resealable packaging. Housebuilders, too, should not assume that single people just want one-bedroom properties; singles have friends and relatives that they might want to accommodate, or even lodgers.

Florence agrees: "Young singletons in particular are happy with their condition. It is a chosen state, rather than a doom and gloom thing, and they are not lonely, so companies should not talk down to them. They should be positive and aspirational in their product offering and communications, not sympathetic."

The message seems to be clear: get the tone and the product right, and there could be rich pickings for the forward-thinking, young-singles-minded entrepreneur.