According to McKinsey and Company, companies that want to be on top in 2030 need to start studying emerging trends and begin preparing for them now. Some trends are already top of mind, others less so.
McKinsey identified and analyzed the main trends that have begun—and will most likely continue—to affect the consumer industry.
According to the report “The consumer sector in 2030: Trends and questions to consider”, there are five dominant forces – and an underlying set of trends – that will drive change in the consumer landscape over the next 10-15 years.
- Changing face of the consumer
- Evolving geopolitical dynamics
- New patters of personal consumption
- Technological advancements
- Structural industry shifts
For example, middle-class consumer spending will almost triple by 2030, and more than 75 percent of the world’s population will own a mobile phone. Other trends, however, don’t quite give clear indications of their path. Each trend has a different level of impact on the consumer industry. Some affect geographic regions and others the world; some will cause bigger shifts in consumer spending.
High-impact trends include the number of city dwellers increasing at a rate of 65 million each year and the majority of the consuming population will be urban. A few other trends include:
- The average consumer will be slightly older.
- Around 75 percent of the 8.5 billion people projected to be alive in 2030 will have both mobile and Internet access.
- The middle class in emerging markets like China will be considerably bigger and better off financially than their parents.
- For businesses, mergers and consolidation will continue. Companies will make better use of digitization, big data, and analytics.
Not all trends will affect all consumer markets and product categories equally. For instance, advanced robotics is advancing in Asia but is yet to take off in South America or Africa. Companies should keep such nuances in mind when determining which trends are most relevant to their own situations.
You can download the complete report here.