Demographic change

Your customers and their demands are changing. Population growth and decline in different countries, combined with an ageing population around the world, will create a markedly different consumer market by 2050.

In many developed countries, the working population will decline significantly and this gap will need to be filled by immigration, later retirements and productivity gains, which could be accelerated by the growth of the digital ‘machine-to-machine’ economy.

While much has been made of the impact of ageing in the Western world, the most dramatic changes will be seen in emerging markets as birth rates and life expectancy around the world begin to converge.

The shifts in population and economic growth will be accentuated by talent migration as successful economies draw people from weaker counterparts.

Population growth against change in median age

View graph

Facts

By 2050, the number of people aged over 65 is forecast to grow by over 200% in China, India, Indonesia, Bangladesh, Pakistan, Brazil, Mexico and Colombia.

Population in the whole African continent is expected to more than double in the next 40 years.
 

So what does this mean for your business?

Your business will need to anticipate demographic developments and bring products and services into line with the changing customer base in the markets you serve.

As people live longer and state support declines, the competitive frontline is likely to shift from lending towards helping people to fund and manage their retirements. Reputation and trust will be crucial in sustaining market share in an increasingly empowered and knowledgeable retirement market.

 

Continue the conversation

Nigel Vooght If you have any questions, please contact:

Nigel Vooght

Global Leader Financial Services

Tel: +44 (0) 20 7213 3960

 

Andrew R Jurczynski

Global Leader Project Blue

Tel: +31 (0)88 792 6690