Spending Choices: Discretionary Income Patterns to 2015
Chapters: 7 | Tables: 24 | Publication date: Nov 2006
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- Get insight into trends in market performance
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Regional coverage
Western Europe; Eastern Europe; North America; Latin America; Asia-Pacific; Oceania; Africa and the Middle East
Table of contents
1. EXECUTIVE SUMMARY
1.1 INFLUENCES ON SPENDING
Chart 1 Factors Influencing Spending Choices 2006
1.2 CONSUMER EXPENDITURE TRENDS
Spend by country
Chart 2 Top 20 Countries by Per Capita Expenditure 2005
Spend by category
Chart 3 Global Consumer Expenditure by Category 2000/2005
1.3 INCOME/PRICE ELASTICITY PATTERNS
Spending patterns in countries grouped by income
Chart 4 Impact of Growth in Income Across Countries and Over Time on Spending Patterns 1993-2005
Income elasticities
Summary 1 Summary of Income Elasticities by Consumer Expenditure Category 2005
Price elasticities
Chart 5 Summary of Price Elasticities by Consumer Expenditure Category 2006
1.4 IMPACT ON CONSUMER MARKETS
Chart 6 Growth in Selected Markets/Sectors: Essentals 2001/2006
Chart 7 Growth in Selected Markets/Sectors: Non-essentals 2001/2006
1.5 FUTURE TRENDS
2. SPENDING DRIVERS
2.1 INTRODUCTION
How to measure discretionary income
Shifting boundaries
Chart 8 Maslow’s Hierarchy of Needs
Components of spending power
Consumer “schizophrenia”
Income elasticity of demand
Price elasticity of demand
2.2 DISPOSABLE INCOME
Eastern Europe see highest income growth
Incomes remain low in emerging markets
Table 1 Average Disposable Income by Country 2000-2005
2.3 CONSUMER CONFIDENCE
Factors impacting consumer confidence levels
Summary 2 Factors Affecting Consumer Confidence
Survey results
Chart 9 Top 10 Countries in Global Consumer Confidence Index 2006
2.4 ECONOMIC GROWTH
US economy losing steam?
Things looking up in the euro area
Is the UK’s growth sustainable?
Japan sees improvement at last
Emerging markets contributing more than ever to global growth
China has highest GDP growth
India catching up fast
Table 2 Real Growth in GDP by Country 2001-2005
2.5 EMPLOYMENT
Unemployment as a deterrent to spending
Table 3 Unemployment Rates by Country 2000-2005
Women in the workforce
Table 4 Working Women as % Female Population by Country 2000-2005
2.6 PRICES
Russia’s soaring inflation
Rising gas prices
Table 5 Consumer Price Index by Country 2000-2005
2.7 LEVELS OF BORROWING
Consumer confidence fuels rising debt
Young people want it all and they want it now
Southern Europeans exert more caution
US debts soaring
Trend extends to developing markets
Table 6 Per Capita Value of Credit Card Transactions in Selected Countries 2000/2005
2.8 HOUSING COSTS
Soaring house prices in the West
Properties overvalued in UK
Will the bubble burst?
2.9 SPENDING PATTERNS BY AGE GROUP
Bulging wallets of the baby boomers
Health and leisure are key priorities
Gen Xers difficult to fathom
The KGOY phenomenon
Fewer children means more pampering
Table 7 Global Population Growth By Age Group 1995-1015
2.10 CHANGING HOUSEHOLD STRUCTURES
Downsizing of households
Singles spend proportionately more on food
Families seek value
Chart 10 Products and Services According to Household Type 2006
2.11 GOVERNMENT INFLUENCES
Child credit helps families
Governments influence tobacco consumption
Encouraging healthy eating
Banning junk food in schools
2.12 THE INFLUENCE OF TECHNOLOGY
Blogging replaces word of mouth
Internet spurs impulse purchases
The rise of eBay
Technology encourages consumers to stay at home
3. GLOBAL SPENDING TRENDS
3.1 PER CAPITA SPEND BY COUNTRY
US consumers spend most
Japan drops in importance
Table 8 Total Per Capita Spend by Country 2000-2005
3.2 GLOBAL SPEND BY SECTOR
Housing gains importance due to rising prices
Healthcare accounts for more discretionary spend
Clothing loses importance as prices fall
Table 9 Global Consumer Expenditure by Broad Sector (Current Prices) 2000-2005
Table 10 Global Consumer Expenditure by Broad Sector (Constant Prices) 2000-2005
3.3 REGIONAL PATTERNS OF EXPENDITURE
Western Europeans spend most on housing
North Americans prioritise healthcare
Eastern Europeans drink and smoke more
Table 11 Consumer Expenditure by Broad Sector and by Region 2005
Table 12 % Analysis of Consumer Expenditure by Broad Sector and by Region 2005
3.4 CHANGING SPENDING PATTERNS IN THE DEVELOPING WORLD
Progress faster in developing countries
Rising middle class fuels demand
Pent-up demand in Russia
From food to beauty in India
4. INCOME AND PRICE ELASTICITY
Introduction
Summary 3 Countries by Income Group
Impact of income levels on consumer spending patterns
Chart 11 Consumer Expenditure by Category in Low-Income Countries (as % Total Consumer Expenditure) 1993-2005
Chart 12 Consumer Expenditure by Category In Middle-Income Countries (as % Total Consumer Expenditure) 1993-2005
Chart 13 Consumer Expenditure by Category In High-income Countries (as % Total Consumer Expenditure) 1993-2005
Impact of income elasticities on consumer spending
Chart 14 Income Elasticities in Low-income Countries 2005
Chart 15 Income Elasticities in Middle-income Countries 2005
Chart 16 Income Elasticities in High-income Countries 2005
Impact of price elasticities on consumer spending
Chart 17 Price Elasticity by Category in Low-Income Countries 2005
Chart 18 Price Elasticity by Category in Middle-Income Countries 2005
Chart 19 Price Elasticity by Category in High-income Countries 2005
5. IMPACT ON CONSUMER MARKETS
5.1 INTRODUCTION
5.2 IMPACT ON IMIS MARKETS
Health and wellness foods see strongest growth
Tobacco sales hit by taxation and regulations
Tourism mirrors economic growth
Table 13 Global Sales in Relevant Sectors 2001-2006
6. TRENDS IN MAJOR MARKETS
6.1 FRANCE
Attitudes towards spending
Consumer expenditure – past, present and future
Chart 20 France: Breakdown of Consumer Expenditure 1995/2005/2015
Spending survey results
Table 14 France: Detailed Breakdown of Expenditure 2000/2005
6.2 GERMANY
Attitudes towards spending
Consumer expenditure – past, present and future
Chart 21 Germany: Breakdown of Consumer Expenditure by Category 1995/2005/2015
Spending survey results
Table 15 Germany: Detailed Breakdown of Expenditure 1998/2003
6.3 ITALY
Attitudes towards spending
Consumer expenditure – past, present and future
Chart 22 Italy: Breakdown of Consumer Expenditure by Category 1995/2005/2015
Spending survey results
Table 16 Italy Detailed Breakdown of Expenditure 2002/2004
6.4 JAPAN
Attitudes towards spending
Consumer expenditure – past, present and future
Chart 23 Japan: Breakdown of Consumer Expenditure by Category 1995/2005/2015
Spending survey results
Table 17 Japan: Detailed Breakdown of Expenditure 2003/2005
6.5 UK
Attitudes towards spending
Consumer expenditure – past, present and future
Chart 24 UK: Breakdown of Consumer Expenditure by Category 1995/2005/2015
Spending survey results
Table 18 UK: Detailed Breakdown of Expenditure 2004/2005
6.6 US
Attitudes towards spending
Consumer expenditure – past, present and future
Chart 25 US: Breakdown of Consumer Expenditure by Category 1995/2005/2015
Spending survey results
Table 19 US: Detailed Breakdown of Expenditure 2000-2004
7. FORECASTS
7.1 TRENDS TO WATCH
Long-term economic progress
More discretionary income
Reaching new regions and consumer segments
Cross-over consumers
When things go wrong
7.2 MARKET FORECASTS
Spending in developing markets will be driven by income growth and credit
Higher oil prices may have little effect on fuel spending
Communications and education will remain key areas of growth
Table 20 Forecast Consumer Expenditure by Category 2005/2015
Forecast consumer market trends
Desire for convenience and indulgence will influence future spending
Rising travel and tourism prices unlikely to deter consumers
Health will remain a priority
Table 21 Forecast Global Sales in Relevant Sectors 2006/2011