In 2024, global disposable income per capita growth slowed to 2% in real terms, with a further slowdown expected in 2025. Amidst geopolitical uncertainty and economic turbulence, consumers are becoming increasingly strategic about their spending. By identifying key demand shifts and providing actionable insights, this report equips businesses to serve value-focused consumers, tap into underserved markets, and capitalise on emerging growth opportunities.
This report comes in PPT.
Amid geopolitical and economic uncertainty, global consumers have adopted a more strategic spending approach, resulting in a slowdown in real terms growth in total discretionary spending from 3.7% in 2023 to 2.5% in 2024. Regionally, non-essentials in Australasia grew at the slowest rate, while the Asia Pacific region maintained the highest growth. The spending on discretionary categories is projected to accelerate slightly (growing by 2.8%) in 2025.
Despite inflation easing in 2024, economic uncertainty and lingering higher inflation expectations mean that consumers remain cautious and price-sensitive. With more turbulence expected in 2025, 71% of global consumers are concerned about their everyday expenses increasing, as per Euromonitor’s Voice of the Consumer: Lifestyles survey 2025.
In 2024, inequality rose in nearly 68% of the researched countries, with a further rise expected in 2025. The Middle East, particularly Saudi Arabia, Oman and the UAE, saw the most significant increases. India, Bangladesh and Pakistan together accounted for almost half of the global growth in low-income earners in absolute terms, highlighting the region’s increasing polarisation.
The mature consumer segment, aged 60 years and above, is seeing a significant increase in population and income, with 4% growth in both metrics in 2024 – the highest among all cohorts. This demographic is typically financially secure, and prioritises spending on comfort, convenience and functionality, offering substantial opportunities for brands in the foreseeable future.
In 2024, the ASEAN region witnessed robust 5.7% growth in consumer expenditure, significantly outpacing the global average of 2.6%. This surge was fuelled by a growing middle class, strong labour markets and increased foreign direct investment. Amidst global economic turmoil, ASEAN consumer spending is expected to expand by 4.3% in 2025, compared to 2.7% growth globally.
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