Affordability, Value and the Cost of Living: Where Do Opportunities Lie?

November 2023

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.

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This report comes in PPT.

Key findings

Cost-of-living crisis continues to impact consumer

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.

Opportunities for growth are numerous and varied

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.

Promising frontiers are beyond obvious markets

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.

Value proposition to take centre stage

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.

Key findings
Exploring Where do opportunities lie?
Exploring opportunities to be future ready
Keep an eye on consumer expenditure forecasts for finding opportunities
Diversify and synergise categories to grow
PrimeBook , an Indian start-up, launches affordable laptop for learning
TikTok enters online retailing space with TikTok Shop
Sasa , a sauces, dips and condiments player, launches beauty products in Indonesia
Looking beyond core business to benefit both businesses and consumers
Developing and emerging markets are promising frontiers
Unmet market potential shows the large size of the prize
Darling Nigeria ensures affordability and value in its offering to consumers
Exploring untapped geographies to present growth prospects
Innovate and enhance value proposition to attract and retain consumers
Pizza Pizza’s Growflation pizza give more value from lower price
BNPL by Tabby in the UAE aims to aid shopping experience with financial flexibility
L’Oréal’s YSL Scent- sation personalises fragrances through emotion analytics
Focusing on value and innovation key to growth and expansion
Key takeaways
Where do opportunities lie?: How to win


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