written by Jackie Lorch
A billion people in the world’s cities will enter the global consuming class by 2025. Since research is most often concerned with understanding the thinking and behavior of people in the consuming class, this statistic should get us fired up about the potential for what we do. This is especially so given that growth in demand for consumer goods is expected to exceed the growth in the consumer classes because so many people in emerging markets are reaching the income level at which demand for certain items takes off.
Understanding these population shifts and potentials is critical to researchers because they impact consumption for almost every product and service.
Other startling statistics come out of the newly updated McKinsey Global Institute report, Urban world: Cities and the rise of the consuming class. Here are 10 Facts to ponder. By 2025:
- The 600 cities making the largest contribution to a higher global GDP will generate nearly 65% of world economic growth
- 440 cities in emerging markets will account for nearly half of all global GDP growth
- 60% of the one billion new members of the urban consuming class will live in these 440 cities
- These 440 cities will contribute almost half of all global growth; 242 are in China
- The 440 include 20 megacities, (10 million+ population) including Shanghai, Sao Paolo, Istanbul and Lagos
- These 20 megacities will have double the growth rate of the world as a whole
- Cities will need to build floor space the size of Austria
- There will be an 80 billion cubic meter increase in demand for city water
- Urban consumers will bring an additional $20 trillion a year of additional spending into the global economy
- Only Chicago in the developed world is expected to become a megacity (10 million in population). China has created 3 new megacities in the past 3 years