Moving into the consuming class to moving within the consuming class
According to McKinsey research, Asian consumers are still largely on the upward part of the ownership S-curve, meaning they remain likely to own more, rather than less, in the future. In the short term, they are looking to spend on products and brands that help them treat themselves. This cohort is buying feelgood items that spark joy to combat the current economic and social uncertainty.
An increasing number of people are projected to join the consuming class, defined as spending more than $11 a day in 2011 purchasing power parity (PPP) terms. In 2000, only 15 percent of Asia’s population was part of the consuming class; the incomes of the remaining three billion people were still insufficient to support discretionary spending. However, over the next decade, a significant reversal is likely. By 2030, three billion people, or 70 percent of Asia’s total population, may be part of the consuming class.
McKinsey & Company. 2022. Beyond income: Redrawing Asiaâs consumer map | McKinsey. [ONLINE] Available at: https://www.mckinsey.com/featured-insights/asia-pacific/beyond-income-redrawing-asias-consumer-map. [Accessed 03 November 2022].