Vietnam, Bangladesh and India will see the largest increase in consumer spending in the current decade. The number of consumers in China with an income of more than USD 50/day is expected to reach about 420 million by 2030, demonstrating the dominant trend in the global consumer market in Asia by 2030.
A corner of Chongqing city, China. It is predicted that by 2030 this country will have 420 million people with an income of more than USD 50/day. Illustration: Shutterstock
According to HSBC’s Asia Consumer Market Report 2030, the rise of the upper middle class in Asia (the group of people with incomes between USD 50 and USD 110 per day) is driving the consumer market. Economist James Pomeroy has built his own demographic database that shows changes in income and expenditure in Asia.
In particular, comparing countries in the region, Bangladesh is expected to have the fastest growth in consumer markets in the current decade (i.e. population earns more than US$20 per day at constant purchasing power parity (PPP)).
Followed by India, the Philippines, Vietnam and Indonesia. By 2030, the population of Vietnam with an income of more than USD 20/day will exceed that of Thailand. Korea and Japan are expected to see a decline in overall market size by 2030.
In terms of size, however, China is expected to maintain its dominant position as the world’s largest consumer market, with some consumers in this country earning more than USD 50/day; by 2030, approximately 420 million people are expected. It records a compound annual growth rate of 8.4%, while the US only reached 0.5% (the same period).
In Southeast Asia, the group of people with incomes of USD 50 to USD 110/day in Indonesia is expected to grow by an average of 13%/year, in Vietnam it is expected to grow by an average of 17%/year over the same period.
Also, according to the HSBC report, when income rises, people often feel the need to buy various items. Spending on entertainment and transportation is expected to grow the fastest, at more than 7% per year in the current decade. By contrast, food spending is expected to grow at the lowest rate, at just 5% per year over the same period.
Vietnam, Bangladesh and India are the three countries expected to see the largest increase in consumer spending in the current decade. Industries such as financial products, entertainment, automobiles, computer equipment and home services will grow fastest in Asia. In particular, financial services are the category that will grow rapidly in most countries in the ASEAN region, both India and China.
@ Saigon Tiep Thi
