Rising costs of living pose challenges globally, but companies can find opportunities in several categories, essential and discretionary, especially in underpenetrated fast-growing markets. By considering category adjacencies and focusing on value, innovation, and aligning with evolving consumer lifestyles, businesses can safeguard profit margins and foster long-term growth.
This report comes in PPT.
In 2023, global disposable income per household fails to keep up with inflation. Consumers continue to grapple with the challenges posed by the rising costs of living. Though the pressure on consumers is expected to ease over the forecast period, they will remain cautious spenders. Thus, companies need to actively seek opportunities to be future ready.
As total global consumer expenditure is expected to increase by 13.5% from 2023 to 2028 at constant 2022 prices, categories such as food and non-alcoholic beverages, education and transport, continue to show strong forecasts. Tapping into the previously mentioned industries is a way to safeguard and expand profit margins.
Developing and emerging countries are key for the future with strong consumer expenditure forecasts and wide room for growth. These regions offer business opportunities due to sizeable consumer bases, increasing purchasing power, growing awareness and reach, and untapped underpenetrated markets.
With escalating costs and constrained budgets, consumers seek to maximise the utility derived from their expenditure. Thus, despite global circumstances, the enhancement of value proposition is imperative to attract and retain consumers. For this, addressing consumer needs through direct consumption solutions and added-value innovations is crucial.
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