China’s youth population holds the answer to future consumption patterns

Author: Louise Nicholas

Date published: 16 Dec 2004

After 25 years of the "one child policy", China’s population is en route to stabilisation, with annual growth rates forecast to drop from 1.3% between 1980 and 2000, to 0.6% over the coming two decades. But despite this fall in numbers, China’s youth generation alone, which is expected to hit 560 million in 2005, exceeds the entire population of most countries in the world and is the core demographic influencing China’s future consumption patterns.

According to new research from Euromonitor International, University graduates are the key emerging economic force within China’s "youth generation", which includes all those aged between 0 and 29 years old. This graduate segment of the population has been rapidly expanding since 2000, thanks to state efforts to increase enrolment at Universities. By the end of 2004, 2.8 million students will graduate from institutions of higher education, more than twice as many as in 2002 and Euromonitor expects this number to rise to 3.2 million in 2005.

Research by Euromonitor suggests that university graduates can be typically characterised by their spending habits - unlike older generations, well-educated young Chinese people are far less inclined to save as, thanks to their higher qualifications, they have confidence in their long-term earning potential. Marius Dundulis, global market research manager at Euromonitor International, comments, "This segment of the population also exerts influence beyond its own buying power, as many graduates continue to live at home after University. While they remain there, they have the ability to persuade their parents to buy new brands and products".

This in-depth demographic data on the Chinese market can be found in The Future Demographic, a new publication launched this month by Euromonitor International. This new publication draws together for the first time an unparalleled collection of demographic data, covering not only China but also a further 70 countries worldwide and 9 major geographic regions.

The Future Demographic is unique in its future focus, analysing shifts in the global population over the next 15 years to examine how this will impact consumer lifestyles, spending patterns and behaviour. The book also contains unique contour charts, which map the entire past, present and future population structures of any country or region.

Marius Dundulis, global market research manager at Euromonitor International, comments "What makes this book unique is that the reader can chose a population target group and track its future development, comparing it with that of other countries. With The Future Demographic answers to long-term strategic questions can be found at a glance, literally, in a matter of seconds".

The Future Demographic