Proof Point
Middle class spending in Asia expected to explode through 2030, eclipsing Europe and North America
Middle Class Spending by Region
2009, 2020F and 2030F (billions of 2005 PPP Dollars)
| Note: | Global middle class is defined here as those households with daily expenditures between $10 and $100 per person in 2005 purchasing power parity terms. The lower bound is chosen with reference to the average poverty line in Portugal and Italy, the two advanced European countries with the strictest definition of poverty. The upper bound is chosen as twice the median income of Luxemburg, the richest advanced country. |
Proof Point Findings
- Middle Class Definition – Households with daily expenditures between $10 and $100 per person in 2005 purchasing power parity terms; lower bound references average poverty line in Portugal and Italy, two advanced European countries with strictest definitions of poverty; upper bound chosen as twice median income of Luxemburg, the richest advanced country
- Spending Forecast – Middle class spending forecasted to grow approximately 5% annually from $21 trillion in 2009 to $56 trillion by 2030
- Asia Biggest Spender – Spending expected to grow fastest in Asia Pacific region, increasing 9% annually; by 2030, almost 60% of middle class spending forecasted to come from region
- Minimal North America and Europe Growth – Very minimal increases in middle class spending expected from North America and Europe
- Drivers of Asia Growth – Size of middle class in China, India and rest of emerging Asia (e.g., Indonesia, Vietnam and Philippines) forecasted to overtake US and EU in coming decades, resulting in increased spending and consumption; consumption growth is result of favorable demographics, rising incomes, and lifestyle and behavioral changes
- Middle Class as Percentage of Global Spending – Middle class spending in forecast period is around 55% - 60% of total global spending
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Accelerator |
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Sector |
Cross-sector
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Date Last Updated |
February 6, 2017
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