Emerging Markets Business Summer 2017 | Page 16

16 WELCOME TO OUR WORLD EMB Services share of household consumption increases with per capita income China’s working-age consumers are spending on food Proportion of total household consumption expenditure . Share of household expenditure % 1 LOW HIGH China's working-age consumers, 2012 1 . 100% = $6,000 17 North America's working-age consumers, 2013 2 . 100% = $50,000 Per capita GDP a L Services- dominant categories Restaurants and hotels Education Health 7 Communications Recreation and culture 47 11 17 6 11 46 13 25 10 5 3 Miscellaneous goods and services Housing, water, electricity, and gas and other fuels Furnishings, household equipment, etc. 3 Food Dining out, recreation Apparel and personal care, personal products and services Housing and utilities Transportation and communication Education, health care 1 Data for mass middle class 15- to 59-year-olds in China. 2 Data for 25- to 34-year-olds in the United States. NOTE: The household consumption data in this chart only includes direct household expenditure and not public expenditure on health care and education. Household consumption data vary among countries and the categories do not match exactly. Numbers may not sum due to rounding. SOURCE: US Bureau of Labor Statistics (BLS) Consumer Expenditure Survey, 2013; China National Bureau of Statistics. Transpor t Clothing and footwear Alcoholic beverages and tobacco Food and nonalcoholic beverages 1 Figures do not include public spending on health care and education. 2 Household consumption figures from Eurostat; all other figures from the World Bank Global Consumption Database. 3 Category data only available for select countries. SOURCE: World Bank Global Consumption Database; Eurostat; McKinsey Global Institute analysis Nine consumer groups are set to generate about 75 percent of global consumption growth in 2015–30, 50 percent by the top three alone Global urban consumption growth, 2015–30 Size represents urban consumption growth Three-quarters of global consumption growth to 2030 will come from increases in per capita spending Other groups Consumption growth, compound annual growth rate, 2015–30 % 13 12 Population growth Global consumer groups to watch China 60-plus 11 Per capita consumption growth 10 47% 45% 58% 25% 75% South Asia’s working-age consumers 9 8 7 6 1970-85 1985-2000 2000-15 2015-30 5 4 Latin America’s working-age consumers 3 42% 55% 53% China’s working-age consumers Southeast Asia’s working-age consumers 2 North America’s working-age consumers Western Europe’s working-age consumers Northeast Asia’s working-age consumers 1 Developed retiring and elderly 0 1 2 3 4 5 6 7 8 9 10 11 12 2030 urban consumption $ trillion, 2010 SOURCE: McKinsey Global Institute Cityscope; McKinsey Global Institute analysis EMERGING MARKETS BUSINESS SUMMER 2017 ISSUE NO. 3 SOURCE: McKinsey Global Institute Cityscope; McKinsey Global Institute analysis EMBreview.org