Looming demographic changes look set to have significant implications for emerging markets and the broader global economy in the years to come.
The world’s population is set to reach 9.7 billion in 2050 (from 7.7 billion today), according to the United Nations1.
While the global population is urbanising, the overall population is also ageing. It has been well documented that countries such as India, Indonesia, and Egypt will enjoy a demographic dividend.
While the US should benefit from an increase in population, Europe and East Asia face the most significant demographic shifts towards an ageing population.
As average life expectancy increases, people are living longer. The share of the population aged 60 years and over will increase to 1.4 billion in 2030 (from 1 billion in 2020), according to the World Health Organisation (WHO)2. This figure is forecast to reach 2.1 billion by 2050.
The ageing global population throws up a number of social, economic and healthcare implications.
However, another cohort is emerging into a dominant economic force: Gen-Z makes up 30% of the world’s population and is expected to account for 27% of the workforce by 2025, according to Zurich Insurance3, and 34% by 2034 according to McCrindle4.
Businesses need to understand Gen-Z, both as consumers and as a workforce.
It is a generation that is digitally savvy and spends significant time navigating sites, apps and social media on their mobile phones.
Gen-Z is also idealistic with strong views around climate change, purpose and accountability, diversity and inclusion, and sustainability, according to McKinsey5.
Businesses need to understand Gen-Z, both as consumers and as a workforce. Gen-Z has different perspectives compared to older generations: salaries and the career ladder is less important, while there is a greater emphasis on work flexibility, according to Zurich Insurance3 .
As consumers, Gen-Z has distinct habits5. They prefer access over ownership, experiences over luxury, superior user experiences, multi-channel shopping and a preference for brands with a strong sense of purpose.
In one McKinsey study6, 73% of Gen-Z respondents said they sought to purchase products from companies they considered ‘ethical’; and nine out of ten respondents said they believed it fell to companies to address environmental and social issues. Gen-Z also claim they can tell when a brand is paying ‘lip service’, and not backing up diversity or sustainability claims with viable action.
For more information on Global Emerging Markets Equity.
Share:
1 Shifting Demographics | United Nations.
2 Ageing and health.
3 How is Gen Z changing the workplace? | Zurich Insurance.
4 Building healthy intergenerational teams | McCrindle.
5 What is Gen Z? | McKinsey.
6 True Gen’: Generation Z and its implication for companies.
BD015555
