Households are getting smaller, older and more urban, and this shift is redrawing consumer demand. This report quantifies where the next 439 million households will form to 2040, and why. It shows how ageing, solo living, female-headed homes, fewer children, pets, housing costs and new appliances reshape spending across regions. With case studies, a SWOT analysis and growth opportunities, it gives strategists the evidence to size markets and prioritise investment.
Delivery
This report comes in PPT.
Key findings
Economic uncertainty weighs on the outlook for households
A cautious spending mindset means consumers are already thinking twice about big-ticket household purchases. Ongoing geopolitical and trade tensions pose the risk of interest rate rises and resurging inflation, which would likely affect the location and type of properties people buy. Even the concern about future financial security may influence these major life decisions.
Urbanisation shapes all aspects of consumer life
Urban areas will become home to over 70% of global households by 2040, with emerging markets in the Asia Pacific the Middle East and Africa undergoing the fastest rates of change. Urban-centric strategies are therefore paramount for governments and businesses, from green building practices for resilience and quality of life, to on-demand delivery services suited to city living.
Solo living: Interpreting who, where and why
Single person households are set to account for over a quarter of global households by 2040. Evolving cultural norms and attitudes to personal fulfilment mean more people feel comfortable living alone. The implications are far-reaching, crossing multiple aspects of consumer life - from the durable goods people buy, to the areas they live in, and how and where they socialise.
Inclusion, independence, and fun are key to unlocking the 60+ opportunity
The 60+ age segment is taking on an increasingly prominent head of household role and tends to benefit from greater financial security and more leisure time than younger generations. Combined with rising digital connectivity among mature adults, that shift means brands across sectors are rethinking how they define and target their core audience.
Engagement strategies are reassessed in the smartphone age
Smartphones will overshadow other digital devices as possession rates reach near-total coverage in the next 15 years. Enhanced by AI, the result is a mobile-first approach to product research, purchase and brand interaction. The disruptive force of social media holds pros and cons for brands - greater reputational risks, but also potential for more authentic, collaborative outreach.
Key summary
Households are growing in numbers and shrinking in size
Our expert’s view of Households in 2025
Top five trends in Households
Top five trends uncovered
Drivers of consumer markets and impact on Households
Household growth has two engines: Smaller homes in Asia, more people in Africa
Households headed by over-60s grow at twice the global rate
Single-person households supply half of new household growth
Pets are still most common in homes with children, not in solo homes
Singapore-based ECOPETS has found success in offering pet-friendly cleaning solutions
Housing costs weigh most on people living alone and young households
Vinted moving beyond fashion with “New Eras Again” campaign
Asia Pacific and Africa will supply 86% of new households to 2040
Households headed by women will grow twice as fast as those headed by men
Oura addresses gender health gaps with new proprietary women’s health LLM
Cities absorb more than four in five new households
IKEA PS 2026 blends playfulness, design, functionality with value
Households with children will fall to just over a third of the total by 2040
AI companion robot (Ai Me) from TCL as a family friend
Time-saving appliances will enter hundreds of millions more homes by 2040
Key facts to share
Navigating the highs and lows of the outlook for households
Opportunities for growth
Our expert’s view of Households to 2040
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