Understanding the Five Drivers of Megatrends

Delivery

This report comes in PPT.

Key findings

Shifting Economic Power

Rapid economic growth in emerging and developing markets is forging new openings for investors who are keen on diversifying away from stagnating advanced economies. Emerging and developing Asia remains best placed for growth with China, India and Pakistan projected to add the largest number of middle-class consumers of any country over 2021-2040.

Population Change

Rising life expectancy leads to a growing number of senior consumers. Numerosity, affluence and the abundance of time make this cohort the consumer force to be reckoned with. Yet, the shrinking labour forces increase competition for talents, particularly in developed countries. Growing immigration might help, spilling over into higher productivity, multiculturalism and diversity across the employee pool.

Environmental Shifts and Pressures

Increasingly pressing environmental issues are driving innovation and demand for green products. However, amid current economic uncertainty, the challenge for businesses is to develop cost-effective products that are sustainable at a more reasonable price.

Technological Advances

Technology continues to advance at a rapid rate, increasingly becoming interwoven into consumers’ lives, reshaping their behaviour and the expectations they have of products and services and the companies behind them. Digital investment is no longer optional for any business, but a necessity to stay relevant and competitive.

Changing Values

Cautious consumerism, triggered by the growing cost of living and lingering political and economic uncertainty, is penetrating consumers’ hearts and wallets. Consumers identify with their purchases, supporting the companies that correspond with and boycotting the brands that do not share their beliefs. The importance of trust, authenticity and uniqueness grows as every consumer voice matters.