Economies and Consumers in 2025

Delivery

This report comes in PPT.

Key findings

Global growth to remain stable but sluggish with multiple downside risks

The global economy is expected to expand steadily in 2025 with easing inflation and interest rates. However, growth remains below potential, with significant regional divergences. Geopolitical tensions, high costs and an uneven recovery continue to impact sentiment, highlighting the need for businesses to focus on efficiency, resilience and exploring new growth opportunities.

Trump’s economic agenda to impact global business and consumer prices

President-elect Donald Trump’s tax and tariff policies may bring a short-term boost to investment and consumer spending in the US in 2025. However, they are likely to drive higher inflationary pressures domestically and globally, while increased tariffs could disrupt international trade and accelerate efforts by companies to de-risk and diversify supply chains in the coming years.

Consumer cautiousness becomes permanent, but selective spending provides optimism

Inflation, economic uncertainty and income disparity will temper spending in 2025. However, growing optimism is set to boost demand for value-driven categories. Consumers increasingly align purchases with priorities and values, challenging businesses to balance affordability with targeted value propositions.

Growing opportunities among mature consumers, particularly in Europe

By 2025, consumers aged 65+ will see significant growth in both population size and spending power, especially in Europe. This largely underserved demographic offers a substantial untapped opportunity for forward-thinking businesses to capitalise on in Europe, with the potential to expand and replicate successful models in North America and Australasia.

Rising sustainability and health regulations challenge businesses, but also create opportunities

Businesses will face growing regulatory pressure in the years ahead, driven by sustainability and health concerns from both governments and consumers across the globe. While compliance can be costly, it also offers an opportunity for companies to reshuffle supply chains, renovate and optimise their product portfolio to gain market competitiveness.