Aug 29, 2024
By: Prerna Tyagi
Amid significant changes in the consumer landscape, companies must stay ahead by updating their insights. According to a recent report by McKinsey & Company, here are nine trends that deserve close attention.
By 2030, 75% of consumers in emerging markets will be between 15 and 34. Young adults in regions like India and Saudi Arabia show a strong desire to trade up for premium brands, making them key drivers of future consumption.
Ageing populations in advanced economies are ready to splurge, particularly in experiential categories like travel. In emerging markets, wealthy older consumers are more optimistic and eager to spend on luxury and discretionary items.
Despite economic pressure, middle income consumers in Europe and the U.S. plan to spend on discretionary items at similar rates as high income consumers, driven by experiences like travel and dining out.
Pandemic era supply chain disruptions led consumers to explore new brands, a trend that’s sticking. In advanced markets, over a third of consumers are trying different brands, while 40% have switched retailers for better prices.
Economic uncertainty has young consumers in Europe and the U.S. prioritising affordability over sustainability, with fewer willing to pay a premium for eco-friendly products in 2024 compared to 2023.
The global wellness market is growing rapidly, especially in emerging markets like China and India, where spending on health and wellness products is outpacing advanced markets. Weight management is expected to drive future growth.
Investments in women’s wellness are growing, with a higher percentage of women in emerging markets indicating a strong intent to splurge on beauty, personal care, and fitness products.
In the U.S., consumers are moving to secondary cities in search of better living conditions, driving economic growth in these areas. In emerging markets, urbanisation is on the rise, especially in India, China, and Africa.
Social commerce is booming in countries like China, India, and Brazil, outpacing growth in Europe and the U.S. Gen Z and millennials are driving this trend, making purchases on social media platforms at much higher rates than older generations.