Older people are forecast to hike their spending on luxury items by 2.7 times to US$800 million, said MasterCard’s Worldwide Insights Report.

Spending by the well-off young is set to grow 2.2 times to US$1.1 billion in the same 10-year period that started in 2006. Apart from China and India with their masses of young people, demand from premium consumers over the age of 60 and in the top third of the market by household assets is seen as outpacing growth from the young premium consumers, those in the top third of income earners with no children.

Japan tops the list with young premium customers prepared to spend US$35.2 billion by 2016 and compared to US$67.8 billion by their older counterparts.

China emerged second with the well-heeled young forecast to spend US$26.4 billion and the seniors US$18 billion, followed by Australia’s young spending US$6.2 billion and US$6.3 billion by the elderly. The projected amounts for Taiwan’s affluent young and elderly are US$4.5 billion and US$3.7 billion.

For India, they are US$6.6 billion and US$1.2 billion while Thailand’s young premium consumers are forecast to spend US$1.6 billion and the elderly US$1.1 billion.

With the rapidly aging population maintaining good health and more time to enjoy it, the demand characteristics of this segment are changing, the report said.

“Instead of looking for items to buy, they seek enjoyable experiences, the report said, with many leading active lifestyles and travelling.

The definition of luxury for the elderly is “likely to be very different from the usual consumption of luxury brands, expensive jewelry and related personal items,” the report said.

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