Consumer market analyst Mintel and economic forecaster The Economist Intelligence Unit have teamed up to predict possible trends related to several Fast Moving Consumer Goods (FMCG) categories, within the U.S., UK and among emerging markets. In the paper, “Convergence with Divergence,” predicted changes in household spending in China, India, Mexico, Turkey and South Africa were compared with the U.S. and UK over the next three years. The report revealed that consumer spending in these emerging markets is expected to grow between 7.7% and 15.2% a year between 2013 and 2016 compared with 4.5% in the U.S.
While the world’s developed economies are still dealing with the fallout from the banking crisis of 2008, many emerging markets have seen incomes rise significantly, providing significant growth opportunities for FMCG businesses looking to enter new markets. Each market continues to differ and a need for businesses to understand their market remains integral.
Several key findings related to the food, beverage and snacking categories were reported in the study. First, India’s prepared food market has more than doubled with cereal consumption increasing. In addition, South Africans are acquiring more expensive tastes in drinks and coffee is expected to see an annual growth of 8.8% a year. Also, in the UK chocolates and other treats are proving popular – particularly individually wrapped sweets.
Further, the report forecasts that the U.S. non-alcoholic beverage market will rebound, up to over 3% annually, as carbonated drinks benefit from new innovations.