consumers in 2018: key insights

CONSUMERS IN 2018

December 2017

© Euromonitor International PASSPORT 2CONSUMERS IN 2018

Disclaimer

Much of the information in this

briefing is of a statistical nature and,

while every attempt has been made

to ensure accuracy and reliability,

Euromonitor International cannot be

held responsible for omissions or

errors.

Figures in tables and analyses are

calculated from unrounded data and

may not sum. Analyses found in the

briefings may not totally reflect the

companies’ opinions, reader

discretion is advised.

World consumer expenditure

will reach a new high in 2018.

Emerging markets will continue

to drive global economic

growth, which will also be

reflected in the consumer

landscape. Nearly two thirds of

the world’s consumer

expenditure will still be

concentrated in developed

markets. This report will provide

some key insights about the

2018 consumer from the digital,

household, income, expenditure

and population perspectives.

Consumers in 2018

CONSUMERS IN 2018

Digital Consumer

Households

Income and Expenditure

Population

http://www.euromonitor.com/



Euromonitor International forecasts that the global economy will grow annually by another 3.7% in real terms in 2018, driven by emerging and developing countries, although income inequality will weigh on consumers as will slow wage growth in developed markets. Real annual disposable income per capita in developed economies will grow by just 1.6% compared to 4.2% in Asia Pacific.

In 2018, global consumer expenditure will reach US$45.0 trillion for the first time in real terms, an increase of US$10.0 trillion since the global financial crisis of 2008-2009. Developed economies will still account for nearly two thirds of the world’s consumer expenditure, but growth is being driven by emerging nations.

Artificial Intelligence (AI) is changing the way we shop, while technology will continue to empower consumers and disrupt traditional businesses. The desire to seek value and ethical consumption are set to stay.

Euromonitor International expects the mobile-first mentality will grow in 2018, households with a car will reach record proportions, spending on education will be the fastest-growing consumer category, and ageing demographics will drive population growth.

The global consumer landscape in 2018

CONSUMERS IN 2018




The digital consumer in 2018

CONSUMERS IN 2018

Top 10 Countries with Highest Growth in

Mobile Internet Penetration: 2014-2018millionINTERNET USERS (BILLION)

3.7PERCENTAGE OFPOPULATION ONLINE

47.9

World Digital Statistics: 2018

MOBILE INTERNET SUBSCRIBERS AS A

PERCENTAGE OF THE POPULATION

70.3

Percentage of Population Online by Region: 2018

Growth in Internet Users: 2014-2018

Source: Euromonitor International from International Telecommunications Union/OECD/national statistics

Note: Mobile internet penetration is calculated by dividing the number of mobile internet subscribers by the total population




Asia will continue to lead with regards to m-commerce uptake

CONSUMERS IN 2018

The smartphone, in particular, fuelled the rapid uptake of internet access in the last decade. While there is

no disputing how this device transformed life for developed market consumers, it served an even more

pivotal role for emerging market consumers. Smartphones and the mobile internet that these on-the-go

devices enabled democratised the internet, altering the ways consumers live, work, play and shop.

Digital commerce presents immense opportunities both in emerging and developed nations. In terms of

mobile-based transactions, Asian nations lead the world with the predominance of mobile payments

continuing in 2018. For the first time in 2015, Chinese consumers made more purchases via mobile phones

than computers, for example. Indonesia, South Korea and Thailand have since followed suit.

Major developed markets have been slower to turn to smartphones as the default device for commerce

because consumers were first conditioned to use the computer. The mobile-first mentality will continue to

gain traction in 2018. Euromonitor International projects that Australians will spend more through mobile

devices than PCs for the first time in 2019, with consumers in the USA and the UK expected to follow in

2020.




Households in 2018

CONSUMERS IN 2018

Household heads aged 60+ will

expand by an annual 3.0% globally,

faster than any other age category

Households with children

will reach almost 940 million worldwide

Mortgaged households globally will

see the slowest annual growth since

2005, with an expansion of 2.6%

The proportion of households

with a car will reach the

highest in history,

at 38.3%

University-educated household heads

will grow faster than any other

academic type, at 2.3% annually

The global number of urban

households will reach a

record high of 1.4 billion




Automated commerce is set to shape how

households shop and save in 2018. Amazon Dash buttons have already

familiarised consumers with one-touch ordering,

while lifestyle outsourcing apps like Digit (which automatically moves

money to profitable savings accounts) and Finery

(catalogues and curates your wardrobe for future

purchases) are offering an ease of use attractive to

urban households.

Generation Z (those born between 1995 and 2005) is starting to have its oldest

members enter the workforce and deal with finding a home, and in

2018 their influence on real estate will be felt. Unlike Millennials, this group

wants to become a homeowner early in life

before property prices rise, further. Their preference is

for low-cost, fixer-upper homes in amenity-rich

central business districts.

Metals are set to be the biggest home décor trend

in 2018. Increasingly affordable and growing in

demand, metal-based appliances, furniture and decorative features will characterise spaces like

the kitchen, bathroom and living room. Copper, in

particular, will be the iconic material and colour for

goods like exhaust hoods, countertops, faucets, pot rails, splashbacks, and

sinks.

Top three households trends in 2018

CONSUMERS IN 2018

A-commerce Generation Z

in real estateMetal at home




Global real consumer spending will grow by 3.0% y-o-y, up from

2.7% in 2017

Asia Pacific will enjoy the fastest regional real

spending growth at 4.7% y-o-y

Western Europe will have the weakest regional real spending growth at 1.7%

y-o-y

Education will be the fastest-growing

consumer spending category

The globalpopulation aged 55-59 will have the highest

average gross income

The real gender income gap will remain large, with women earning 31.7% less than men

Income and expenditure in 2018

CONSUMERS IN 2018




Behind the headline figure of accelerating global consumer

spending growth in 2018 are contrasting prospects for

developed and developing economies:

Real annual consumer spending growth in emerging and

developing countries is set to strengthen to 4.6% (from

3.7% in 2017), largely thanks to higher commodity prices in

2018 that will help to raise earnings in commodity-exporting

economies.

In developed economies, annual real consumer spending

growth is projected to stagnate at 2.1% in 2018, as a result

of weak income gains, dampened consumer confidence,

and continuing uncertainties. Amid stagnating demand,

companies need to be innovative to find pockets of growth

and new opportunities. They can do so, for example, by

leveraging technology to stay competitive and deliver much

more than just a good price.

Increasing polarisation will also be a key feature of many

country markets in 2018, as income equality is not expected

to improve across 69 out of 85 major economies whose Gini

index is tracked by Euromonitor International. The income

gap is set to widen the most in Japan, Hong Kong and

India, while South Africa, Kenya and Guatemala will

continue to be the top three most unequal countries in 2018.

Emerging markets are expected to lead global spending growth

CONSUMERS IN 2018




Global population: 7.6 billion

Median age: 30.3 years

Fertility rate: 3.0 children born per female

Life expectancy at birth: 72.5 years

Global population in 2018

CONSUMERS IN 2018

Source: Euromonitor International from national statistics

Note: Data are forecasts

Global diabetes prevalence:

8.5%

of the population aged 20-79




The global population is set to rise by 1.2% year-on-

year in 2018. Driving this growth will be the 65+ age

group, which will be the fastest-growing cohort with a

3.7% year-on-year expansion. The population aged 0-14

is expected to rise by just 0.8% annually in 2018. This is

a result of higher female labour force participation,

delaying childbirth, and rising life expectancy across the

globe.

A number of lifestyle health issues will continue to be on

the rise, as people consume more calories and become

increasingly sedentary. In North America, the rate of

obesity is expected to reach 43.5% of the population

aged 15+, up from 41.7% in 2016.

Health and healthy living will increase in importance in

2018 to become a key determinant in consumers’

purchasing decisions and their lifestyles.

Population ageing and rising health concerns will have

huge impacts on consumer goods industries, presenting

them with wide-ranging opportunities in 2018 and

beyond to provide senior consumers with goods and

services to meet their changing lifestyles, shopping and

consumption habits, as well as widely varying income

and wealth levels, expectations and needs.

The 65+ age group will continue to drive global population growth

CONSUMERS IN 2018



FOR FURTHER INSIGHT PLEASE CONTACT

Michelle Evans

Digital Consumer Manager

[email protected]

An Hodgson

Income and Expenditure Manager

[email protected]

Pavel Marceux

Households Specialist

[email protected]

mailto:[email protected]




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