Global Overview of Income and Expenditure

Delivery

This report comes in PPT.

Key Findings

Global income growth slows due to the rising geopolitical uncertainty

Consumer real gross income growth slowed to 2.9% in 2024, with total expenditure reaching USD60 trillion. Asia Pacific led, with 3.8% real spending growth, fuelled by rising incomes and expansion of the middle class. Emerging and developing Asia is projected to drive global disposable income growth at a 4.2% CAGR over the period to 2040, with India and China contributing significantly. However, per capita income in the region will remain modest.

Turbulence hits lower income earners harder

While overall income rose in 2024, inequality widened too. Social Class E grew by 1.3%, adding 25 million people and is expected to surpass 2 billion in 2025, driven by economic turbulence and high living costs. In the forecast period, growth of the middle class is forecast to slow, with Eastern Europe seeing a sharp contraction.

The number of affluent consumers grows, but their wealth grows faster

Global wealth grew by 5.9% in 2024, fuelled by robust returns in real estate and stock markets. The US led, accounting for 49% of the global wealthy population and 55% of total wealth. Despite slower growth in the number of affluent consumers globally in 2024, their average wealth increased, indicating they became even wealthier.

Food, health and education retain their importance

Between 2024 and 2040, global consumer spending on food and non-alcoholic beverages will rise in real terms, with consumers raising their budget allocations on essentials, such as fish and dairy, as well as health-focused products. Education will be the fastest growing category, driven by growing demand for upskilling and reskilling.

Untapped consumer segments present growth opportunities

Even amid uncertainty and economic turmoil, growth opportunities exist in emerging geographies and overlooked segments. Southeast Asia, with its rising middle class and resilient labour markets, offers significant potential. The ageing population and growing number of low-income earners, often under-targeted, present strong future growth opportunities, too.