Megatrends: Quantifying Shifting Market Frontiers
In April 2021, Euromonitor ran a webinar: Quantifying Megatrends: Expanding Your Portfolio in the Right Spaces. This discussed our new tool for quantifying megatrends, and shared the methodology behind both data and key findings. Shifting Market Frontiers is a key megatrend identified by Euromonitor International’s network of industry, country, economic and consumer experts as likely to have the furthest-reaching impact on industries and consumers in the future.
Shifting Market Frontiers talks about how focus of consumer markets move to less developed regions and countries, especially Asia and Africa. Shifting Market Frontiers is among the Top five megatrends by propensity of consumers to spend.
Megatrends Size based on Propensity of Consumers to Spend (USD) 2025
Source: Euromonitor International
Which are the biggest markets for Shifting Market Frontiers?
On a regional basis, Asian consumers were least affected by the global recession of 2020. The region's consumer expenditure contracted by only 2.1% in 2020, while all other regions contracted by around double this amount. On the back of strong economic recovery, Asia Pacific is set to become the fastest growing consumer region, with expenditure levels rising by a CAGR 3.9% over 2020-2040, adding USD16 trillion to global consumer expenditure - half the total expected global increment. By 2025, Asia Pacific is expected to become the largest consumer market globally, overtaking North America.
This is predominantly attributable to China, by far the largest consumer market in Asia Pacific, and a country that is expected to drive growth in the future. However, opportunities elsewhere in the region are also substantial, with fast growth and significant opportunities in India, Indonesia, the Philippines and Vietnam.
Shifting Market Frontiers: Historic and Future Retail Value Growth by Country
Buble size represents retail value in 2020
Pinpointing promissing categories accross countries
Asia Pacific will remain the key driver for the majority of consumer industries over 2020-2025. Packaged food and apparel and footwear will see the highest absolute growth in Asia Pacific – over USD100 billion. In addition, beauty and personal care and personal accessories will see over 50% of global absolute value growth coming from the region. In terms of categories, dairy, skin care and sportswear will be the most promising for future growth and investment in Asia Pacific.