Beyond Affordability: Turning Consumer Polarisation into Growth in Fragmented Markets

July 2025

The average consumer no longer exists. Markets are fragmenting into increasingly diverse segments, with polarisation emerging as one of the clearest and most measurable patterns. This report explores how polarisation can serve as a lens to understand where value expectations are shifting most sharply, and how businesses can turn these divisions into targeted growth opportunities.

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Key findings

Shifting strategies for a divided consumer base

Driven by rising volatility and deepening divides in demographics, income and values, consumer markets are fragmenting at pace. Within this growing diversity, groups are clustering at opposite ends of the market, creating clear polarisation. Broad-based strategies are losing traction as needs become more distinct. To capture growth, brands must respond with targeted and adaptable propositions that reflect both the breadth and intensity of today’s consumer landscape.

Cohesion in high-growth markets

The Consumer Landscape Polarisation Index shows uneven polarisation. Developed economies exhibit deeper divisions, whereas many developing ones, such as Vietnam and Thailand, remain relatively unified. In these markets, brands can scale more efficiently, exploiting cohesion before value demands fragment.

Household structure split drives innovation

Household structure split, fuelled by ageing populations and shifting household structures, is most acute in advanced markets, but is spreading to China, the UAE and Turkey. The gulf between single-person homes and families with children demands targeted products, bespoke marketing and adaptable packaging.

Affordable premiumisation surges

Income divide is widening, with growth at both extremes and a contracting middle. In 2025, South Africa and Nigeria lead, followed by the US and New Zealand. Traditional income assumptions are no longer valid, leading to accelerated affordable premiumisation as consumers demand quality at affordable prices.

Behavioural contrast demands personalisation

Behavioural contrasts are intensifying in areas such as privacy, stress tolerance, digital preferences and civic engagement. Brands must navigate these conflicting mindsets with segment-specific value propositions. Success hinges on delivering differentiated benefits that resonate with sharply divergent consumer expectations.

 

Why read this report?
Key findings
One size fits no one anymore
Consumers are splitting, growth follows the fault lines
Deconstructing the Consumer Landscape Polarisation Index
Polarised household types reshape demand across markets
Capri Sun from Kraft Heinz targets families and singles via different formats
Mars Wrigley targets solo and social snackers with format strategy
Household spending looks similar, but preferences vary widely
Unlocking growth through tailored strategies
Social Class E surges, deepening global income divides
Economic volatility to intensify the income divide globally
H&M enters premium childrenswear market with affordable, durable styles
Danone adopts dual-track pricing strategy
Strategies for navigating income-based consumer divides
Mapping the contrasting consumer behaviours
Conflict markets require flexible but authentic value propositions
Lessons from the Coca-Cola boycott
Starbucks balances mobile innovation and social spaces
Navigating behavioural contrasts with authenticity, adaptability and alignment
Turning consumer polarisation into growth: How to win
Evolution of “Consumer Landscape Polarisation”
Questions we are asking
Key pillars and indicators of Consumer Landscape Polarisation Index
Consumer Landscape Polarisation Index: Rankings
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