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HUMANE
Demography and Consumers
Alison Angus – Head of Lifestyles
OVERVIEW
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§ About Euromonitor International
§ Consumer landscape
§ Population change and shifting values impact consumption behaviour
§ Conclusion
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Euromonitor International network and coverage
DEMOGRAPHY AND CONSUMERS
Consumer Landscape
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Consumer landscape in 2019 – a global viewDEMOGRAPHY AND CONSUMERS
SourceEuromonitorInternationalfromnationalstatistics/Eurostat/UN/OECD/ITUNote:Dataisforecastandinconstant2017prices,fixedUS$exchangerates:
INTERNET USERS (BILLION)3.9World Digital Statistics: 2019
PERCENTAGE OFPOPULATION ONLINE
50.8PENETRATION RATES OF MOBILEINTERNET
78.10.0 2.5 5.0
Alcoholic Bevs &Tobacco
Leisure &Recreation
Household Gds &Servs
Clothing & Footwear
Housing
Health Gds & MedServs
Hotels & Catering
Misc. Goods &Services
Transpor t
Communications
Food & Non-AlcBevs
Education
Annual real growth, %
GGlobal Population by Age Group: 2019
Babies/Infants (0-2) Kids (3-7)Tweens (8-12) Teens (13-17)Young Adul ts (18-29) Middle Youth (30-44)Mid-Li fers (45-64) Later Lifers (65-79)
Global Consumer Expenditure Growth by Category: 2019
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0.0 1.0 2.0
Food & Non-Alcoholic Bevs
Clothing &Footwear
Alcoholic Bevs &Tobacco
Household Gds &Svces
Transport
Housing
Leisure &Recreation
Misc Gds andSvces
Communications
Hotels & Catering
Education
Health Gds & MedSvces
Western Europe Consumer Expenditure Growth by
Category: 2019
Consumer landscape in 2019 – Western EuropeDEMOGRAPHY AND CONSUMERS
Source:EuromonitorInternationalfromnationalstatistics/Eurostat/UN/OECD/ITUNote: Data is forecast and in constant 2017 prices, fixed US$ exchange rates
INTERNET USERS (MILLION)402Western Europe Digital Statistics: 2019
PERCENTAGE OFPOPULATION ONLINE
79.4PENETRATION RATES OF MOBILEINTERNET
94.9
Western Europe Population by Age Group: 2019
Babies/Infants (0-2) Kids (3-7) Tweens (8-12)
Teens (13-17) Young Adults (18-29) Middle Youth (30-44)
Mid-Lifers (45-64) Later Lifers (65-79)
Annualrealgrowth,%
Population change and shifting values impact consumption behaviour
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European consumers values and priorities are changingDEMOGRAPHY AND CONSUMERS
0
20
40
60
80
Lookingtosimplifylife
Willingtospendmoneytosavetime
Spendmoneyonexperiences
Expecttobeself-employedatsomepoint
Expecttolive/workabroad
ImportantthatpeoplethinkIamdoingwell
Makeadifferencetotheworld
Positiveimpactonenvironment
BuyfromcompaniesandbrandsIcantrust
GenerationX GenerationZ Millennials
%of respondentsEuromonitorlifestylesurvey2017
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Multiple generations but blurring values and prioritiesDEMOGRAPHY AND CONSUMERS
Gen ZHere now
§ Future market drivers
§ Digital natives§ Individualistic§ Mindful§ Socially
responsible§ Long term
value and investment
Millennials still around
§ Driven change§ Tech savvy§ Confident§ Innovative§ Global citizens§ Authentic§ Experiential§ Value for
money
AlphaComing soon
§ Future challengers
§ Hyperconnected virtual lives
§ Self-sufficient§ Emotional§ Diverse global
thinkers§ Limited attention
span
50+Coming back
§ Transforming§ Leveraging
technology§ Strong and
Independent§ Collaborative§ Conventional§ Ageless§ Experiencing
more
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§ Expanding wealthy young population in the East§ but increasing competition from
investment in region§ tightening of visa conditions in some
markets
Growing wealthy middle class in the East, but need to engageDEMOGRAPHY AND CONSUMERS
0.0
0.5
1.0
1.5
2.0
2.5
3.0
3.5
Uganda
Tanzania
Angola
Cameroon
Malaysia
Nigeria
PakistanKenya
Ethiopia
SouthAfrica
Asia/Africa countries with fastest growing Middle Class households 2019 - 2030 CAGR
%
2019-2030CAGR%
To win:• Flexible solutions • Cross region collaboration• Engage audience through emotional
connections
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§Demand more social responsibility and authenticity
§Evolving values force companies to review how they connect with consumers
§Engagement with brands is more emotional
§Brands aligning values with those of today’s consumers
§And connecting via most popular social media platforms
Ben & Jerry’s: brand values resonate with consumersDEMOGRAPHY AND CONSUMERS
54%ofEuromonitor’slifestylesurveyfeeltheycanmakeadifferenceintheworld
throughtheirchoices
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Ageing but age agnostic population DEMOGRAPHY AND CONSUMERS
§ Ageing population that feel, behave and want to be treated as younger
§ Not passively ageing -enjoyment of life is priority
§ Demographic segmentation out, behavioural segmentation in
0204060
China Ind
iaJapan
Russia
Brazil
Mexico USA Uni
ted…
Global
50+theFastestGrowingPopulationSegment
%of50+totalpopulation2018 %of50+totalpopulation2025
Ageless lifestyles drive demand for lifelong learning § Staying relevant driving demand for reskilling
§ Second careerists§ Self development
§ Expanding interests and experiences
Source:EuromonitorInternational
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Apple – lifelong brand loveDEMOGRAPHY AND CONSUMERS
§Focus on customer experience
§Various touchpoints – products, website, ads, app store, retail
§Stores build community and lifelong learning
§Brand as the ultimate lifestyle choice
Image source: Apple
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Creative curation for uniqueness and improved experiences
DEMOGRAPHY AND CONSUMERS
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
Generation Z
Millennials
Generation X
Baby Boomers
Desire to be distinct from others, 2017
Strongly agree Agree Neither agree nor disagree Disagree Strongly disagree
Source:Euromonitorlifestylessurvey2017
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LOLI Beauty: Personalised experience through product creation DEMOGRAPHY AND CONSUMERS
§Subscription box service that gives consumers the tools and sustainably-sourced ingredients to mix their own personalised and pure skin care recipes in their own home – Sustainable DIY beauty
“Recipes” guide choices but give consumers a sense of control; a known ingredient list satisfies consumers’ desire to be informed.
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§Time critical consumers demand frictionless experiences, any time, any place, any where
§Technological advancements enabling multi-platform access and delivery solutions
§Digital strategy not enough – think post digital
Multi-platform digital future to expand audienceDEMOGRAPHY AND CONSUMERS
Internet
Mobileapp&superapps
AR/VR
Automation
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§Changing store set up –Automation / Digitising§Little interaction with
people§Appealing to younger
generations
§Not all consumers want the same experience§Drive through§In store, personal§Home delivery§Book a table
McDonalds: Giving consumers ‘the way they want to shop’ DEMOGRAPHY AND CONSUMERS
Conclusion
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Mirroring the needs of consumer priorities and the future work placeDEMOGRAPHY AND CONSUMERS
Transferable skills for all
Curated and flexible solutions
Collaborative and engaging approach
Shared resources
Entrepreneurial incubator hubs
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§The gig economy§Death of the “job for life”§Trade-off between freedom and
security§Two-fold impact on business:1. Changes in consumption and
social trends 2. Implications on managing the
workforce
§No longer just for entrepreneurs and start ups – collaboration with major corporations
§Attract top talent§Innovation spaces§Monitor competition§Find acquisition targets
WeWork – Shared working and incubator spacesDEMOGRAPHY AND CONSUMERS
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ExperienceMore• Rejectingtraditionalmaterialisticvalues,choosinghappinessandstatusthroughexperiencesinstead.
ShiftingMarketFrontiers• Globalisationbringsaboutchangeindevelopingcountries,alteringconsumers’values,whichwillshapethefutureforshiftingmarketfrontiers.
HealthyLiving• Consumerstakingcontroloftheirhealthandwellbeing,adoptingamoreconsciousandpreventativeapproach.
EthicalLiving• Consumersvoicingtheirconcernsaboutethicalissues,demandingbusinessesandgovernmentstakeactiontopushsustainabilityandbringaboutchange.
MiddleClassRetreat•Middleclassconsumersre-assessingtheirpriorities,rejectingconspicuousconsumptionandfocusingmoreonvalueformoney,optimisingtimeandspendingonmakingthemostoflife.
Premiumisation• Theneedtobebetter,leadmoresimplelifestyles,stayhealthyandclaimbacktimeisdrivingthepremiumisationtrend.
ShoppingReinvented• Consumerslookingforseamlessshopping,convenienceandimmersiveexperiences,definingthefutureofhowconsumersshop.
ConnectedConsumers• Demandforsimplifyinglives,immediategratificationandsavingtimeshapesconnectedconsumers.
How changing values generates and shapes megatrendsDEMOGRAPHY AND CONSUMERS
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Flexibility Accessibility Affordability
Getting away from a “one size fits all approach”DEMOGRAPHY AND CONSUMERS
Brands embracing consumer-centric worldHigher education must embrace learner-centric worldConsumers determine what they consume and howStudents determine what they learn and how
