New Global Consumer Class in 2024

Every year, there are over 100 million people entering the middle class globally. Global consumer class is reported at 4 billion people in June 2023 and this figure is expected to reach 5 billion in the next 8 years in 2031. According to World Data Lab, middle class group is defined as someone who can afford to spend at least USD12 per day (measured in 2017 purchasing power parity, PPP prices) and these individuals are seen to be typically rising up in developing regions, especially, like Asia and Africa. 

In next year 2024, a total of 113 million people is expected to join the global middle-class and majority of it, about 81.0%, are from Asia, followed by Africa (9.0%), Latin America (5.5%) and the remaining 4.5% is from Rest of the World. The following visual from Visual Capitalists portrays the breakdown of the numbers of new consumers entering the consumer class in 2024.

Asia Consumers Coming in Strong

Source: World Data Lab

As mentioned, vast majority of the new consumers joining the global middle class in 2024 is coming from Asia, where more than half of figures i.e. 64 million (56.6%) are coming from India (33 million) and China (31 million) alone. These figures are not surprising as both India and China have massive populations which contributes to higher rates of urbanization and rising incoming levels.

Indonesia and Bangladesh coming in as third strongest after China and India, with each contributing 5 million new consumers, thanks to the expansive population pyramid. Populations with expansive pyramids have the advantage of a larger youth group and growing working-age population.

It is also intriguing to note that many of the countries in the graph above, including China, India, Indonesia, Vietnam, Philippines and Thailand are simultaneously among the world’s fastest-growing e-commerce markets. These countries have witnessed remarkable e-commerce expansion, marked by impressive figures that underscore their prominence in the digital marketplace.

Africa on Watchlist

In the African region, it’s noteworthy that only Egypt and Nigeria are poised to make a significant contribution, each expected to contribute 2 million and 1 million new middle-class consumers, respectively, in the year 2024. What sets these two nations apart is their shared attributes of tremendous growth potential and birth rates that surpass the regional average. This dynamic combination underscores the unique demographic and economic promise that both Egypt and Nigeria hold.

Looking into the future, the economic forecast for Egypt and Nigeria is even more astonishing. According to Goldman Sachs, by the year 2075, these two nations could ascend to become the fifth and seventh largest economies globally. This would be a monumental shift, surpassing longstanding economic powerhouses such as Japan, Germany, and the United Kingdom. The potential for Egypt and Nigeria to make such a substantial leap underscores their ongoing economic evolution and suggests a promising trajectory for these nations in the decades to come.

The Takeaway

In summary, the global middle class is on the rise, predominantly driven by Asia’s economic powerhouses like India and China. These nations are witnessing remarkable urbanization and increasing incomes, making them significant contributors to the global middle class. 

Meanwhile, Egypt and Nigeria in Africa are poised to contribute significantly to the global middle class, showing promise for future economic growth. As these shifts unfold, the world anticipates a more interconnected and prosperous future, marked by the dynamic growth of the global consumer class.