Future of the Family

Fewer people per home

Due to factors such as falling fertility rates, rising divorce rates, the decline of multi-generational families, and expensive real estate, the family is shrinking. Rural households are set to contract slightly faster than urban households on average, while developing countries will see a faster decline in children per household. This had wide-ranging impacts on numerous segments.

Rise of the single-parent and single-person household

The biggest impact from the decline of the nuclear family (couple-with-children households) will be reflected in the rise of single-person and single-parent households. These households require distinct and individual approaches, needing a shift in marketing methods and targeting strategies.

Fewer children does not mean fewer opportunities

While the average number of children per home is set to decline worldwide, the attractiveness of children-related segments will not necessarily decline. Parents typically invest more money into the fewer number of children they have, while segments such as kids’ clothes and toys are still in an early growth phase across lucrative emerging markets.

The state will face major challenges

The break-up of the traditional family unit will have major consequences on the state, particularly in areas such as social welfare, labour markets, productivity and housing. Governments must prepare sufficiently for a major cultural shift already in a bid to avoid economic aftershocks.

Changing families means changing habitats

The transformation of the family is leading to the transformation of the home. Demand for small, hyperurban apartments is rising, due to the surge in childlessness, while a smaller family is creating more space for appliances and household goods in emerging markets.