Global Income and Expenditure Trends

October 2023

Businesses globally face challenges in consumer markets in the short to medium term, owing to the rising cost of living and increasingly financially cautious consumers. Amidst uncertainty arise opportunities. Income and expenditure insights are crucial in identifying the prospects and tailoring the approach.

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Key findings

Increasing costs of living lead to the search for value

Rising costs of living and sluggish income growth affect the spending of all social classes. Not only do consumers become more frugal and cautious when facing the uncertainty, they also rethink their priorities, moderate consumption patterns and shift to multi-value solutions.

Consumer income polarisation is growing

Income polarisation in terms of the gap between lowest income to highest income households is expected to worsen (or at least not improve) over the period 2022-2040 in 78 out of the 103 key economies that Euromonitor International tracks, including the US, Brazil and China.

The struggles of Gen Z shape their spending

Gen Zs in their 20s will witness nearly triple-digit income growth in real terms by 2040 (when they are in their late 30s and early 40s). Zoomers’ spending priorities will be focused on housing, health and leisure due to skyrocketing real estate prices, deteriorating mental health and increasing loneliness.

Asia is to drive consumer markets beyond 2030

Accommodating 55% of the global population, Asia Pacific was responsible only for 28% of global consumer expenditure in 2022. By 2030, the region is expected to surpass North America to become the largest consumer market in the world, facilitating opportunities in the food, housing, transportation, hospitality and health sectors.

Saving is back

Down in 2022 compared to 2021, by 2024, global savings are set to increase by 3% in real terms, led by growing cautiousness and consciousness. Although Norwegians and Egyptians will be pioneeringly increasing their savings by more than 70% in real terms by 2024, Asians will remain the most cautious consumers globally.

 

Scope
Key findings
Global income and expenditure snapshot
Key trends in brief
Areas of opportunity
Global income and expenditure in 2022: Summary
Consumer expenditure rises despite cost-of-living challenges
Rising costs of living impact various income groups differently
Income polarisation is growing
Expenditure on hotels and catering is still below pre-pandemic levels
Slowdown in global income growth over the period to 2040
Millennials will be the most affluent cohort in 2040
Population aged 65+ to be predominant in the top income band
Middle class expansion is set to slow
Education, food and hospitality to see the fastest growth
Top five trends impacting economies, companies and consumers
Sluggish income growth sparks a shift in spending priorities
Shwapno expands to meet the growing demand of Bangladeshi urbanites
Gen Z spending set to focus on housing, health and leisure
McDonald's Sweden launches a couples offer to encourage in-person dating
Saving is en vogue again
Kaufland: Mixing sustainability and health and wellness into private label assortment
Income gap widens around the world
Virtual counsellor myKlovr bridges gaps between college, career and innovation
Emerging and developing Asia will be doing well
YouKuai’s plant-based food brand Zrou set for expansion
Key trends in brief
Consumer expenditure
Consumer expenditure by urban/rural split
Consumer expenditure by category
Population by income
Average income by age
Income by gender
Social classes
Wealth and high-net-worth individuals (HNWIs)
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