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More than two billion reasons to consider investing in the emerging markets consumer

Our BlogVideos Jul 02, 2018
Edward Kerschner, Chief Portfolio Strategist

Growth of consumer spending has been a leading theme for investors in emerging markets — and it doesn’t show signs of stopping.

We’re witnessing a significant expansion in the global middle class. Over the next 15 years, it’s
estimated that the middle class will expand by more than two billion people — and they will come
almost exclusively from the emerging world. The majority – almost 90% of the next billion entrants
into the global middle class will be in Asia. Harnessing that consumer spending trend may be a big


Global spending by the middle class is projected to grow from $35 trillion in 2015 to $64 trillion by 2030, and over 65% of this growth in demand comes from Asia, principally China and India. In 2015, China and India together comprised 17% of global middle class consumer spend, but by 2030, they’re projected to make up 39%. And including the other Asia Pacific countries brings the projected share for emerging markets to about 57% of global middle class consumer spending.

Bottom line

There’s potential for investment growth in companies that could benefit from this expanding consumer
base, and it will be a reoccurring theme for emerging markets investors.

Watch Ed Kerschner make the case for investing in the emerging markets consumer:

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Edward Kerschner

Edward Kerschner

Chief Portfolio Strategist