New Consumer Landscape: Consumerism and Beyond

February 2023

Due to changing global demographics and unfolding financial and environmental concerns, consumption patterns have been evolving over the recent years, accelerating the shift towards more budget-conscious and eco-aware shopping. As changing consumer values and motivation drive different consumption pattens, to thrive in the global markets, businesses must cater to the more discerning, value-driven, and experience-seeking consumer.

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This report comes in PPT.

Key Findings

Household incomes in Asia Pacific will soar by 2040

Asia Pacific households are set to witness the fastest growth in real disposable incomes, driven by robust economic development, fast-paced urbanisation and widespread technology adoption. In addition to growing affluence in the region, the average wages of the lowest earners are expected to pick up considerably, especially in Bangladesh, India and Indonesia.

Spending on education to grow the fastest, yet housing will remain the main spending burden

Due to economic and political uncertainty, short-term consumer spending in real terms will be sluggish, yet it is expected to pick up from 2024 onwards. Education expenditure is poised to experience the fastest growth in real terms over 2022-2040, driven largely by consumers from China and India, yet housing will jeopardise the discretionary spending and absorb the largest share of consumers’ budgets. Housing spending will grow at a faster pace than disposable income.

Value perception becomes multilayered, the need to tick several traits at once grows

While value for money remains a top priority, consumers are also making the choices based on heightened and new-found values, motivations and expectations, such as convenience, sustainability and personalisation. Adoption of minimalism, marked by a shift towards digital and experience-orientated consumption, serves as another area where consumers see added value.

Saving is the new black

Consumers worldwide plan to increase their savings over the short-term period. Respondents from emerging countries prove to be the most frugal ones. At least two in three consumers in Nigeria, South Africa and the Philippines plan to save more money. Alternatively, significantly fewer respondents in developed markets plan to increase their savings - only one in three consumers in Spain and Italy.

Consumer loyalty is fading, but desire for brand engagement is high

As consumers look for products that offer the best value, they are willing to pay a premium for items that are high quality, eco friendly and can serve multiple purposes. However, increasing connectedness and information availability makes consumers more informed and more likely to flip between brands. Overcoming declining loyalty requires brands to foster a deeper connection with their customers.

Key findings
Asia Pacific consumers to enjoy the fastest income growth
Purchasing power grows faster among the affluent
Bargain and quality hunting as a way to navigate economic turbulences
Case study: Wealthiest households in the US are getting wealthier rapidly
Low-income households outspend their earnings
Affordability tops low-income consumer shopping priorities
Case study: Rapidly rising incomes stimulate growth in Vietnamese middle class
Consumer expenditure growth: Slow in short term, accelerating in the long run
Expenditure on education rockets
Who are the future knowledge cravers?
Rising spending on housing will trim the demand for discretionary goods
Homebase provides alternative mortgages
Saving is a priority, spending is a luxury
British fintech app Revolut allows consumers to manage their finances better
Focus on value, but it is not just value for money
Value for money is an attribute to stay
Coop Italia reaching out with lower-cost premium brand Fiorfiore
Woodlands Dairy’s reverse vending machines incentivise consumers to recycle
Convenience tops consumers’ non-monetary value list
Who are the Convenience Seekers?
iRobot leads robotic vacuum cleaning with clear proposition
Consumers are watching: Businesses are instrumental to social change
Who are the Social Givers?
OLIVELA: Launching a women’s empowerment campaign Stand With Her
One in two consumers want tailored products
Who are the Individualists?
Four Seasons welcomes back travellers with “Milestone Memories”
Consumers prioritise experiences rather than things
Who are increasingly turning to experiences?
Australian Treasury Wine Estates targets consumers with AR experience
Climate change is a top concern
Circular consumption by region
Procter & Gamble: A reprise for cold water washing strategy
Cost cutting and minimalism shapes consumer shopping journey
Desired features: Health-friendly, high-quality, superior-performance
Thanks to Yaga , higher quality items are now more affordable to South Africans
Differences in shopping motivations lead to physical blend
HoverTouch , an interactive wall, helps to engage consumers in-store
Price competition is tough on loyalty
Engagement as a key to enhance shopping experience and consumer loyalty


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