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.
This report comes in PPT.
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.
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.
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.
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.
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.
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