"Global wealth and spending have soared since 1990 and will continue to do so. Adjusting for inflation in both unit cost of goods and currency, growth in real spending will increase $12 trillion in the next 10 years. Spending on food will account for about 10 percent of this sum.," this management consultants' agency reported.
"The A.T. Kearney Consumer Wealth and Spending Study is based on a detailed statistical and economic analysis of 70 consumption categories in 86 countries –over a period of 30 years (1990 – 2020) as well as 3,000+ social/economic variables."
Hana Ben-Shabat, A.T. Kearney partner and study co-leader was quoted as saying that "one of the key findings of the study is that consumers behave predictably as a country’s wealth increases and consumption patterns mature. The study found that there are 12 spending patterns globally that are distinct, concise and have been stable over a long period of time."
The study puts countries into several groups according to behaviour patterns of consumers.
Croatia is listed in the "Escalating Consumer Group".
"About 600 million people fall into the Escalating Consumer income group and they spend about $2.5 trillion a year. In 2020, the population of this group will be roughly the same, but spending will increase by $1.1 trillion, or roughly 10 percent of spending growth worldwide."
"Countries in the Escalating Consumer income group are Argentina, Bosnia-Herzegovina, Bulgaria, Croatia, Estonia, Guatemala, Hungary, Iran, Latvia, Lithuania, Macedonia, Mexico, Poland, Romania, Russia, Serbia, Slovakia, Turkey, Turkmenistan, and Uruguay." the agency said in its press release.
"Spending patterns are stable in these markets. Consumers focus less on the basics, with fairly balanced spending on personal care, entertainment, and leisure items. There is typically a spike in telecom spending, while healthcare spending is low because many countries in this group have nationalized services."
"Basic Consumer Group" includes approximately a quarter of the present-day population —1.8 billion people— who spend only $1.4 trillion per year. "Over the next decade, this group will account for only 2 percent of the growth in consumer spending—primarily because fewer people will be in this group."
The next is "Emerging Consumer Group" with two billion people.
"More than a quarter of the world's population comprise the Emerging Consumer income group today, and they spend about $4.6 trillion per year. By 2020, the Emerging consumer income group is expected to grow to 3.4 billion people spending almost $10 trillion. This group will account for 45 percent of new spending, making emerging consumers a priority for global companies." Food and other basics still drive a fair share of spending among this group, reads the press release.
The following is the above-mentioned Escalating Consumer Group.
And, "Established Consumer Group" includes markets comprising 1.2 billion people who spend about $20 trillion a year.
"By 2020, this group will number 1.3 billion and spend about $25 trillion a year. These consumers make up about 45 percent of the next decade’s $12 trillion in spending growth and 63 percent overall. The nations in this group are Australia, Austria, Belgium, Canada, the Czech Republic, Denmark, Finland, France, Germany, Greece, Hong Kong, Indonesia, Ireland, Italy, Japan, Malaysia, the Netherlands, New Zealand, Norway, Portugal, Singapore, Spain, Sweden Switzerland, Thailand, the United Kingdom, and the United States."
"Established Consumers spend significant amounts of money on personal care, leisure, entertainment, and healthcare (in countries where the government does not provide it). Spending in three sectors—durable goods and services, transportation, and healthcare services—is expected to increase more than $1 trillion per sector in the next decade."