This article was written by Jana Rude, Senior Insights Manager – Consumers. The original article was published by Euromonitor International. You can find the article here.
Ageing, urbanisation and health concerns are significant factors shaping global population trends. As populations age, we witness a rise in “super-aged” countries where seniors represent a substantial segment of consumers with considerable purchasing power. Meanwhile, Generation Z, though not yet affluent, wield considerable influence through numbers and heightened focus on values. Additionally, climate change now becomes a critical concern for consumers centred on health and wellbeing.
Harvard geneticists suggest that some babies born today may live to 150, but, regardless of that, what we know for sure in 2024 is that the global population is living longer and ageing faster. By 2040, only Zimbabwe and Monaco will have a lower share of people aged 65+ compared to today. Meanwhile, countries like Japan, South Korea, Italy, Germany and the US will join the ranks of “super-aged” societies, with over 20% of their population aged 65 or older.
The growing senior population is gaining attention due to their significant numbers and above-average purchasing power. As they retire and shift from saving to spending, seniors are driving demand in sectors like health and wellness, travel, and luxury goods, focusing on products that support an active, self-sufficient lifestyle despite the challenges of ageing. For example, in 2023, Toyota launched the C+walk S in Japan – a 3-wheeled walking-assistance vehicle designed to navigate pavements, assess road conditions, and enhance mobility for seniors by means of advanced obstacle detection and pedestrian-friendly speeds.
In 2024, Generation Z (1.9 billion globally) are coming of age, gaining purchasing power, and surpassing baby boomers in both the workforce and voting numbers. This generation is known for polarised behaviours, particularly around social issues, technology, and spending, and for its strong focus on values that guide each of its decisions.
Gen Z are highly engaged in social and environmental causes, though they often hesitate to align their finances with these values. While they rely heavily on technology, they are also aware of its risks, including health and data privacy concerns. Faced with low incomes and rising living costs, Gen Z adopt a cautious spending approach, but splurge on items that bring them joy. Yet, all those behaviours outline their core values – empowerment, self-expression, belonging, rationality, and retreat. Catering to these values and tailoring products and services accordingly is key to appealing to this generation.
Source: Euromonitor Voice of the Consumer: Lifestyles Survey, fielded January to February 2023 (n=40,691)
In 2023, there were 43.8 million more males than females globally, largely due to cultural preferences and selective practices in countries like China, India, Indonesia, Malaysia, Pakistan and parts of the Middle East. This “male surplus” led to social challenges like increased competition for partners, delayed marriages, and social tensions, among others. However, the gap is shrinking, and by 2040, there will be only 16.6 million more males than females globally.
This trend is expected to expand, leading to significant implications for consumption patterns. While some spending behaviours may overlap between genders, women’s spending habits often diverge. For instance, women typically allocate more of their budget to health and wellness, family and household goods, and fashion and beauty, and they tend to be more conservative with their personal finances.
Climate change is becoming a central focus in health policy as its effects – such as extreme weather, air pollution, and water scarcity – are increasingly linked to public health outcomes. Severe weather events like heatwaves, hurricanes and floods are causing more injuries, displacement and deaths from cardiovascular and respiratory conditions, especially among vulnerable groups.
Countries are rethinking health systems to address climate-induced diseases and environmental challenges, shifting from merely treating symptoms to actively preventing climate-related health risks. Companies are also playing a role, offering solutions that tackle both climate and health issues. For instance, Nuvoco Vistas, India’s fifth largest cement company, introduced Ecodure Thermal Insulated Concrete. This eco-friendly material lowers indoor temperatures by up to three degrees Celsius due to its lower thermal conductivity.
Sub-Saharan Africa, with 61.2% of its population aged under 25, far surpasses the US (30.9%), China (29.7%) and Europe (27.4%). This youthful demographic, combined with rapid urbanisation – six of the 10 fastest-growing urban populations are in the region – offers significant potential for a demographic dividend and drives consumer spending, particularly in urban areas.
As incomes rise, a new middle class is emerging, increasing demand for modern retail, such as supermarkets and hypermarkets. Global retailers are capitalising on this growth, with frontrunners such as Carrefour opening their hypermarkets across the continent.
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