The next billion consumers represent new growth opportunities worth trillions of dollars in consumer spending across the globe. However, the next billion consumers are not a monolithic cohort, as they vary hugely from market to market. In order to capture and capitalise on these new opportunities, companies need to understand who the next billion consumers are, where they come from, what drives their spending, and what are their needs, preferences and behaviours.
Uncovering and targeting the next billion consumers is more about discovering the forgotten consumer and unleashing their spending, than reaching low-income consumers at the bottom of the pyramid. The next billion consumers are diverse; they include new, emerging middle classes, BOP consumers, rural communities, and older consumers across both developed and developing countries.
Reduced poverty, rapid urbanisation, and technology are among the key drivers of new spending. They integrate the overlooked and forgotten consumer into the market by alleviating, if not removing, the access and economic constraints these consumers face.
The next billion consumers are diverse; they range from low-income consumers at the bottom of the pyramid in Africa, rural consumers in Asia (where the focus has been mainly on the expanding middle class), through to the emerging middle class in Latin America and older consumers in many developed markets who embraced online activities during the COVID-19 pandemic and who are likely to retain their newly-formed online habits going forward.
Because they come from diverse geographies, demographic and economic groups, as well as having a billion needs, the next billion consumers require companies to adopt granular marketing and pricing strategies. In return, they present substantial opportunities - across the four key markets examined in this report, consumer expenditure by the overlooked consumer groups is expected to amount to USD10.6 trillion in 2030.
Health has emerged as a top spending priority that the next billion consumers have in common. Brands and businesses, regardless of their categories or sectors, can add value by focusing on health and wellness in order to increase their appeal.
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