Developing Affluence: The Emerging Market Consumer Opportunity

December 15, 2014 |Author: EGA Investment Strategy | Categories: Investment Strategy, Emerging Markets

The emerging market (EM) consumer theme is not new and research on this long term trend suggests that it should endure. Based on our own calculations, the quantum of EM consumption surpassed $11 trillion last year, with growth accelerating from 2003 onwards. The consulting firm McKinsey & Co. has called EM the "$30 trillion decathlon," forecasting that "by 2025, annual consumption in EM will reach $30 trillion, (nearly half of the global total-the biggest growth opportunity in the history of capitalism).1 At current trend rates of growth, emerging market consumption would surpass that of the U.S. by 2027. As such, we believe that harnessing the EM consumer trend should be central to most emerging market investment strategies.

Read the latest Investment Strategy Commentary below.


1 Source: McKinsey & Company, "Winning the $30 trillion decathlon," August 2012

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