Megatrends

The Future of the Middle Class

Feb 2020

US$1,325

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About This Report

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If you purchase a report that is updated in the next 60 days, we will send you the new edition and data extract FREE!

The Middle Class Retreat megatrend has very broad relevance to businesses across a wide range of industries. Having started in developed countries, the Middle Class Retreat megatrend and its associated trends will increasingly manifest themselves in emerging and developing markets. Insights into the future of the global middle class can inform business strategy to help brands and marketers capture opportunities presented by this megatrend.

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Overview

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Gain competitive intelligence about market leaders. Track key industry trends, opportunities and threats. Inform your marketing, brand, strategy and market development, sales and supply functions.

Key Findings

There is no fixed, universal definition of the middle class

The essence of the middle class is the ability to spend on discretionary items. However, there is no universal definition of the middle class, because the costs of living vary across countries. In this report, the middle class is defined as comprising households with an annual disposable income of USD45,000-100,000 in developed economies and of USD15,000-45,000 in emerging and developing economies.

Middle Class Retreat expected to continue in developed countries

The Middle Class Retreat megatrend is set to continue across developed economies, as the share of spending by middle class households in total consumer expenditure across developed economies is set to decline from 38% in 2008 to 34% in 2030.

A new, higher-income middle class rises in emerging and developing countries

Across emerging and developing markets, households are shifting up the income distribution pyramid, giving rise to a new middle class with a household disposable income of USD45,000-100,000, comparable with the purchasing power of the middle class in developed markets.

China and India are main drivers of the new, higher-income middle class in emerging markets

In India, households on USD45,000-100,000 will increase their share to account for 29.8% of total households and 36.4% total spend in 2030. In China in 2030, the share of households on USD15,000-45,000 is set to shrink while households on USD45,000-100,000 will expand to 29.8% of all households and 38.6% of total consumer expenditure.

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Introduction

Scope

Key findings

Megatrend analysis at Euromonitor International

Middle Class Retreat is one of our eight focus megatrends

Who is the middle class?

Middle Class Retreat - the story so far

Developed Economies: is the Middle Class Retreat Set to Continue?

Stagnant middle class spending growth

Low productivity growth constrains middle class income growth

Middle class retreat is expected to continue

A global downturn to exacerbate the middle class retreat

Consider both size and share of spend when targeting middle class

US: Weight of the middle class in total spending is modest

The continuing retreat of the US middle class

Etsy: Winning hearts and wallets of US middle class consumers

Japan: The middle class forms a substantial consumer base…

…but is ageing and shrinking

Shiseido: Tapping into Japan’s ageing middle class

Germany: The middle class accounts for one in two dollars spent

German middle class - bigger in size but smaller in share of spend

Miele: Targeting Germany’s “sharing middle”

Emerging and Developing Economies: a New Middle Class

An expanding middle class…

…and the rise of a new middle class with higher incomes

The switch to a higher-income middle class is set to continue…

…driven mainly by China and India

A global downturn to shift households down the income pyramid

India: Households to join the new, higher-income middle class

The Indian middle class is confident and aspiring

Vistara Airlines : Bringing premium economy class to India

China: Share of spending by the new middle class to balloon

The Chinese middle class: older and richer than ever

Ctrip : Catering to the silver middle class tourist in China

Conclusion

Middle Class Retreat: What does the future hold?

Strategies for success

Why buy this report?

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Megatrends

Megatrends

The Future of the Middle Class

New Report Guarantee

About This Report

New Report Guarantee

Overview

Why buy this report?

Key Findings

There is no fixed, universal definition of the middle class

Middle Class Retreat expected to continue in developed countries

A new, higher-income middle class rises in emerging and developing countries

China and India are main drivers of the new, higher-income middle class in emerging markets

Want to find out more about this report?

Table of Contents

Introduction

Scope

Key findings

Megatrend analysis at Euromonitor International

Middle Class Retreat is one of our eight focus megatrends

Who is the middle class?

Middle Class Retreat - the story so far

Developed Economies: is the Middle Class Retreat Set to Continue?

Stagnant middle class spending growth

Low productivity growth constrains middle class income growth

Middle class retreat is expected to continue

A global downturn to exacerbate the middle class retreat

Consider both size and share of spend when targeting middle class

US: Weight of the middle class in total spending is modest

The continuing retreat of the US middle class

Etsy: Winning hearts and wallets of US middle class consumers

Japan: The middle class forms a substantial consumer base…

…but is ageing and shrinking

Shiseido: Tapping into Japan’s ageing middle class

Germany: The middle class accounts for one in two dollars spent

German middle class - bigger in size but smaller in share of spend

Miele: Targeting Germany’s “sharing middle”

Emerging and Developing Economies: a New Middle Class

An expanding middle class…

…and the rise of a new middle class with higher incomes

The switch to a higher-income middle class is set to continue…

…driven mainly by China and India

A global downturn to shift households down the income pyramid

India: Households to join the new, higher-income middle class

The Indian middle class is confident and aspiring

Vistara Airlines : Bringing premium economy class to India

China: Share of spending by the new middle class to balloon

The Chinese middle class: older and richer than ever

Ctrip : Catering to the silver middle class tourist in China

Conclusion

Middle Class Retreat: What does the future hold?

Strategies for success

Why buy this report?

Want to find out more about this report?

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