Euromonitor International’s Consumers team is pleased to present key insights for Consumers in 2018. These insights from our expert analysts cover digital, household, income, expenditure and population.

1. CONSUMERS IN 2018
December 2017

2. © Euromonitor International PASSPORT 2CONSUMERS IN 2018
Disclaimer
Much of the information in this
briefing is of a statistical nature and,
while every attempt has been made
to ensure accuracy and reliability,
Euromonitor International cannot be
held responsible for omissions or
errors.
Figures in tables and analyses are
calculated from unrounded data and
may not sum. Analyses found in the
briefings may not totally reflect the
companies’ opinions, reader
discretion is advised.
World consumer expenditure
will reach a new high in 2018.
Emerging markets will continue
to drive global economic
growth, which will also be
reflected in the consumer
landscape. Nearly two thirds of
the world’s consumer
expenditure will still be
concentrated in developed
markets. This report will provide
some key insights about the
2018 consumer from the digital,
household, income, expenditure
and population perspectives.
Consumers in 2018
CONSUMERS IN 2018
Digital Consumer
Households
Income and
Expenditure
Population

3. © Euromonitor International PASSPORT 3CONSUMERS IN 2018
 Euromonitor International forecasts that the global economy will grow annually by another 3.7% in real
terms in 2018, driven by emerging and developing countries, although income inequality will weigh on
consumers as will slow wage growth in developed markets. Real annual disposable income per capita in
developed economies will grow by just 1.6% compared to 4.2% in Asia Pacific.
 In 2018, global consumer expenditure will reach US$45.0 trillion for the first time in real terms, an increase
of US$10.0 trillion since the global financial crisis of 2008-2009. Developed economies will still account for
nearly two thirds of the world’s consumer expenditure, but growth is being driven by emerging nations.
 Artificial Intelligence (AI) is changing the way we shop, while technology will continue to empower
consumers and disrupt traditional businesses. The desire to seek value and ethical consumption are set to
stay.
 Euromonitor International expects the mobile-first mentality will grow in 2018, households with a car will
reach record proportions, spending on education will be the fastest-growing consumer category, and ageing
demographics will drive population growth.
The global consumer landscape in 2018
CONSUMERS IN 2018

4. © Euromonitor International PASSPORT 4CONSUMERS IN 2018
The digital consumer in 2018
CONSUMERS IN 2018
Top 10 Countries with Highest Growth in
Mobile Internet Penetration: 2014-2018
millionINTERNET USERS (BILLION)
3.7
PERCENTAGE OF
POPULATION ONLINE
47.9
World Digital Statistics: 2018
MOBILE INTERNET SUBSCRIBERS AS A
PERCENTAGE OF THE POPULATION
70.3
Percentage of Population Online by Region: 2018
Growth in Internet Users: 2014-2018
Source: Euromonitor International from International Telecommunications Union/OECD/national
statistics
Note: Mobile internet penetration is calculated by dividing
the number of mobile internet subscribers by the total
population

5. © Euromonitor International PASSPORT 5CONSUMERS IN 2018
Asia will continue to lead with regards to m-commerce uptake
CONSUMERS IN 2018
 The smartphone, in particular, fuelled the rapid uptake of internet access in the last decade. While there is
no disputing how this device transformed life for developed market consumers, it served an even more
pivotal role for emerging market consumers. Smartphones and the mobile internet that these on-the-go
devices enabled democratised the internet, altering the ways consumers live, work, play and shop.
 Digital commerce presents immense opportunities both in emerging and developed nations. In terms of
mobile-based transactions, Asian nations lead the world with the predominance of mobile payments
continuing in 2018. For the first time in 2015, Chinese consumers made more purchases via mobile phones
than computers, for example. Indonesia, South Korea and Thailand have since followed suit.
 Major developed markets have been slower to turn to smartphones as the default device for commerce
because consumers were first conditioned to use the computer. The mobile-first mentality will continue to
gain traction in 2018. Euromonitor International projects that Australians will spend more through mobile
devices than PCs for the first time in 2019, with consumers in the USA and the UK expected to follow in
2020.

6. © Euromonitor International PASSPORT 6CONSUMERS IN 2018
Households in 2018
CONSUMERS IN 2018
Household heads aged 60+ will
expand by an annual 3.0% globally,
faster than any other age category
Households with children
will reach almost 940 million
worldwide
Mortgaged households globally will
see the slowest annual growth since
2005, with an expansion of 2.6%
The proportion of households
with a car will reach the
highest in history,
at 38.3%
University-educated household heads
will grow faster than any other
academic type, at 2.3% annually
The global number of urban
households will reach a
record high of 1.4 billion

7. © Euromonitor International PASSPORT 7CONSUMERS IN 2018
Automated commerce is
set to shape how
households shop and save
in 2018. Amazon Dash
buttons have already
familiarised consumers
with one-touch ordering,
while lifestyle outsourcing
apps like Digit (which
automatically moves
money to profitable savings
accounts) and Finery
(catalogues and curates
your wardrobe for future
purchases) are offering an
ease of use attractive to
urban households.
Generation Z (those born
between 1995 and 2005) is
starting to have its oldest
members enter the
workforce and deal with
finding a home, and in
2018 their influence on real
estate will be felt. Unlike
Millennials, this group
wants to become a
homeowner early in life
before property prices rise,
further. Their preference is
for low-cost, fixer-upper
homes in amenity-rich
central business districts.
Metals are set to be the
biggest home décor trend
in 2018. Increasingly
affordable and growing in
demand, metal-based
appliances, furniture and
decorative features will
characterise spaces like
the kitchen, bathroom and
living room. Copper, in
particular, will be the iconic
material and colour for
goods like exhaust hoods,
countertops, faucets, pot
rails, splashbacks, and
sinks.
Top three households trends in 2018
CONSUMERS IN 2018
A-commerce Generation Z
in real estate Metal at home

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Global real consumer
spending will grow by
3.0% y-o-y, up from
2.7% in 2017
Asia Pacific will enjoy
the fastest regional real
spending growth at
4.7% y-o-y
Western Europe will have
the weakest regional real
spending growth at 1.7%
y-o-y
Education will be the
fastest-growing
consumer spending
category
The global
population aged 55-59
will have the highest
average gross income
The real gender income
gap will remain large,
with women earning
31.7% less than men
Income and expenditure in 2018
CONSUMERS IN 2018

9. © Euromonitor International PASSPORT 9CONSUMERS IN 2018
 Behind the headline figure of accelerating global consumer
spending growth in 2018 are contrasting prospects for
developed and developing economies:
 Real annual consumer spending growth in emerging and
developing countries is set to strengthen to 4.6% (from
3.7% in 2017), largely thanks to higher commodity prices in
2018 that will help to raise earnings in commodity-exporting
economies.
 In developed economies, annual real consumer spending
growth is projected to stagnate at 2.1% in 2018, as a result
of weak income gains, dampened consumer confidence,
and continuing uncertainties. Amid stagnating demand,
companies need to be innovative to find pockets of growth
and new opportunities. They can do so, for example, by
leveraging technology to stay competitive and deliver much
more than just a good price.
 Increasing polarisation will also be a key feature of many
country markets in 2018, as income equality is not expected
to improve across 69 out of 85 major economies whose Gini
index is tracked by Euromonitor International. The income
gap is set to widen the most in Japan, Hong Kong and
India, while South Africa, Kenya and Guatemala will
continue to be the top three most unequal countries in 2018.
Emerging markets are expected to lead global spending growth
CONSUMERS IN 2018

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Global population: 7.6 billion
Median age: 30.3 years
Fertility rate: 3.0 children born per female
Life expectancy at birth: 72.5 years
Global population in 2018
CONSUMERS IN 2018
Source: Euromonitor International from national statistics
Note: Data are forecasts
Global diabetes prevalence:
8.5%
of the population aged 20-79

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 The global population is set to rise by 1.2% year-on-
year in 2018. Driving this growth will be the 65+ age
group, which will be the fastest-growing cohort with a
3.7% year-on-year expansion. The population aged 0-14
is expected to rise by just 0.8% annually in 2018. This is
a result of higher female labour force participation,
delaying childbirth, and rising life expectancy across the
globe.
 A number of lifestyle health issues will continue to be on
the rise, as people consume more calories and become
increasingly sedentary. In North America, the rate of
obesity is expected to reach 43.5% of the population
aged 15+, up from 41.7% in 2016.
 Health and healthy living will increase in importance in
2018 to become a key determinant in consumers’
purchasing decisions and their lifestyles.
 Population ageing and rising health concerns will have
huge impacts on consumer goods industries, presenting
them with wide-ranging opportunities in 2018 and
beyond to provide senior consumers with goods and
services to meet their changing lifestyles, shopping and
consumption habits, as well as widely varying income
and wealth levels, expectations and needs.
The 65+ age group will continue to drive global population growth
CONSUMERS IN 2018

12. FOR FURTHER INSIGHT PLEASE CONTACT
Michelle Evans
Digital Consumer Manager
michelle.evans@euromonitor.com
An Hodgson
Income and Expenditure Manager
an.hodgson@euromonitor.com
Pavel Marceux
Households Specialist
pavel.marceux@research.euromonitor.com

13. © Euromonitor International PASSPORT 13CONSUMERS IN 2018
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