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Understanding the Five Drivers Shaping MegatrendsSarah Boumphrey, Director – Economies and Consumers
An Hodgson, Head of Income and Expenditure
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This PowerPoint presentation includes proprietary information from Euromonitor International and cannot be used or stored with the intent of republishing, reprinting, repurposing or redistributing in any form without explicit consent from Euromonitor International.
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The data included in this document is accurate according to Passport, Euromonitor International’s market research database, at time of publication: September 2019
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Overview
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Introduction
Our five drivers in focus
How do drivers generate and shape megatrends?
Conclusion
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Introduction
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What is a megatrend and why megatrend analysis?
UNDERSTANDING THE FIVE DRIVERS SHAPING MEGATRENDS
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Euromonitor’s megatrend framework
UNDERSTANDING THE FIVE DRIVERS SHAPING MEGATRENDS
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We have identified five drivers shaping consumer behaviour
UNDERSTANDING THE FIVE DRIVERS SHAPING MEGATRENDS
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Our five drivers in focus
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Shifting Economic Power
1
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6Of the world’s 10 largest
economies will be emerging markets
256Size of the global economy in
PPP$ trillions
76%Of growth will come from
emerging and developing economies
In 2030…
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The shift to the east
UNDERSTANDING THE FIVE DRIVERS SHAPING MEGATRENDS
0 4,000
Saudi Arabia
India
Mexico
UK
France
Brazil
Italy
Germany
Japan
USA
1980
0 15,000
Italy
UK
France
Brazil
Russia
Germany
India
Japan
China
USA
2005
0 60,000
Mexico
UK
Brazil
Germany
Russia
Japan
Indonesia
India
USA
China
2030
Total GDP $ trillions PPP terms
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Population Change
2
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74Life expectancy at birth in years
8.5Global population in billions
33Median age in years
In 2030…
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One in ten people globally will be aged 65+ in 2030
UNDERSTANDING THE FIVE DRIVERS SHAPING MEGATRENDS
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Environmental Shifts and Pressures
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92%Of global population with access
to electricity
66Population density persons per
square kilometre
1.4Cars in use in billions
In 2030…
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Three key challenges
UNDERSTANDING THE FIVE DRIVERS SHAPING MEGATRENDS
Climate Change
Competition for Resources
Pollution and Waste
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Technology
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US$213Consumer spending on
communications per capita
99%Of households with a mobile
phone
60%Of households with a tablet
In 2030…
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The always-on consumer
UNDERSTANDING THE FIVE DRIVERS SHAPING MEGATRENDS
3.8bnGlobal internet users as of 2019, which equates to half of the world’s population.
57%of connected consumers report they would be lost without the internet.
34%of connected consumers prefer online communication rather than other means.
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Changing Values
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4,317Billion US$ spent on leisure and
recreation
53%Proportion of consumer
spending on services
21%Generation Z as a % of global
population
In 2030…
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From conspicuous to conscious consumption
UNDERSTANDING THE FIVE DRIVERS SHAPING MEGATRENDS
0 10 20 30 40 50 60
I prefer to spend my money on experiencesrather than things
I am willing to spend money to save time
I feel I can make a difference to the worldthrough my choices and actions
I find I am looking for ways to simplify my life
% of respondents
Important Consumer Values 2015 -2019
2019 2017 2015
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How do drivers generate and shape megatrends?
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Megatrend analysis at Euromonitor
UNDERSTANDING THE FIVE DRIVERS SHAPING MEGATRENDS
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Experience More
UNDERSTANDING THE FIVE DRIVERS SHAPING MEGATRENDS
Weak income gains have driven
consumers to reassess their
values & priorities.
Rise of Millennials and Gen Z drives
change. Migration and mobility also
facilitate this megatrend.
Technology acts as an enabler by enhancing the
overall experience.
Consumers seek to minimise the impact their
consumption has on the
environment.
Experience More is driven by the
shift in consumer attitude towards
conscious consumption.
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Connected Consumers
UNDERSTANDING THE FIVE DRIVERS SHAPING MEGATRENDS
The future of Connected
Consumers will be driven by emerging
markets.
The Asian Century will give rise to
more Connected Consumers.
Digital connectivity underpins the very
existence of Connected Consumers.
This contributes to the migration to
digital content and new business models which
promote access.
The greater value consumers place on comfort, time, and convenience drives Connected
Consumers.
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Shopping Reinvented
UNDERSTANDING THE FIVE DRIVERS SHAPING MEGATRENDS
This driver is not only about the rise
of emerging markets, but also the middle class retreat and the
search for value.
Urbanisation allows for greater experimentation, engagement, and
commercial success.
Technology is interwoven into
almost every step of the new
shopper journey.
Environmental shifts & pressures
impact what consumers buy
and their decision making process.
The willingness to spend money to save time drives
innovation in areas such as the
last mile.
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Conclusion
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Drivers are crucial to understanding consumer behaviour
UNDERSTANDING THE FIVE DRIVERS SHAPING MEGATRENDS
To stay ahead of changing consumer preferences and values,
companies must embrace megatrend analysis.
The five factors or drivers that we have identified comprise undeniable facts about the world. Although the drivers themselves
do not change, the trends within them do. For example, in the
1950s, the baby boom was a key population trend in many countries, today ageing is.
Understanding these drivers provides clarity to megatrend analysis.
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31UNDERSTANDING THE FIVE DRIVERS SHAPING MEGATRENDS
Disruption in consumer markets is indivisible from megatrends
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32UNDERSTANDING THE FIVE DRIVERS SHAPING MEGATRENDS
Netflix: A case in point
Drivers set the stage of a
changing environment and enable change
Megatrends highlight
resulting consumer behaviour
shifts and demands
Disruptors smartly
leverage right time, right solutions for consumers
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Looking ahead we will continue to see significant change
UNDERSTANDING THE FIVE DRIVERS SHAPING MEGATRENDS
Shifting Economic Power Population Change
GDP in emerging and developing economies will
grow more than 3 times faster than developed economies to 2030.
Technology
The urban population will increase by 840 million
between 2019 and 2030.
Three quarters of households globally will
have access to broadband internet in 2030.
Environmental Shifts and Pressures Changing Values
In the 12 years between 2019 and 2030, the number of cars in use will grow by 38%, compared to 56% in
the 12 years to 2018.
Consumer spending on leisure and recreation will increase by
26% in real terms between 2019 and 2030.
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Thank youSarah Boumphrey, Director – Economies & Consumers
@SarahBoumphrey
https://www.linkedin.com/in/sarah-boumphrey-73173361/
An Hodgson, Head of Income and Expenditure
@An_Hodgson
https://www.linkedin.com/in/aphodgson/