The Future of the Consumer Industry

The near future will bring about changing consumer preferences as consumer demographics become vastly more diverse.

• The world is grappling with an ageing population
• Generation Z and Alpha are significantly more diverse in terms of race, ethnicity, sexuality and gender identity compared to previous generations

Breaking free from traditional social and cultural anchors, consumers are redefining what their priorities are and how they choose to spend their time and money.

• Birth and marriage rates are in decline
• Young people are increasingly deciding to delay home ownership

Business digitalisation and advancements in material and bioscience will likely lead to the development and deployment of new technologies and the emergence of new markets so rapid that the progress of the previous decade will likely pale in comparison.

• Advances in material science offer breakthrough solutions to the production of consumer products
• Radical science and technology advances – including in the field of Artificial Intelligence - are expanding our traditional understanding of what it means to be human

Consumer buying patterns will shift, and new categories of goods and services will increasingly vie for wallet share. Businesses that struggle with speed and agility may face unprecedented challenges.

• Capability-as-a-service is redefining consumer business models, driving new revenue growth models in the industry
• Consumers are spending more time online and digital goods and services are taking an increasing share of the consumer’s wallet

The role of consumerism will be pivotal in combatting climate change. Companies that adopt a sustainable consumption model will be better positioned for achieving expected results.

• An estimated 60% of all greenhouse gases are produced by consumers and the consumer industry
• Governments are increasingly making consumer businesses accountable for their waste and emissions

Facing economic and policy uncertainty, companies will likely need to reorient their management approach.

• Economic uncertainty has led to tightening of fiscal policies compared to pre-pandemic years
• Major global economies are burdened with ageing infrastructure
• Voter opinions are increasingly polarised