White Paper: China Overtakes the USA as the World's Largest Economy

250_chinaVsUS-v1.0An economic milestone is expected to occur in 2014 with China likely to overtake the USA to become the world’s largest economy in Purchasing Power Parity or PPP terms.

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China and the USA may be economic rivals but beyond the headlines divergent trends in both countries are apparent. Everything from living standards, consumption patterns, the business environment, productivity, retail and travel markets differ in China from the USA.  Similarities are there with income inequality an issue in both countries and both are leaders in the development of renewable energy technologies, manufacturing production and, less auspiciously, pollution.

Our analysts have identified the key weaknesses and strengths of the two superpowers across a wide range of industry sectors and in terms of economics, demographics, consumer trends and the business environment.

 

 

 

Key Facts:

  • As the world’s two largest manufacturers, China and the USA lead in global energy consumption and pollution, with China overtaking the USA in 2010 to become the world’s biggest energy consumer.
  • China is set to overtake the USA in 2014 in terms of international travel and knock Germany off the top spot in 2017 to become the largest outbound source market with 105 million outbound trips.
  • By 2018, USA’s beauty per capita spending is expected to increase to US$240, approximately five times higher than China’s projected per capita spending of US$50. The success of local beauty and personal care players in China has led to brands such as Garnier and Revlon pulling out of the country.
  • In 2002, China overtook the USA to become the leading beer market in terms of volume sales. However, China still has some way to go before it can claim to be the world’s biggest beer market by value.

 

Have a question or a thought to add? Leave us a comment below.

July 28, 2014

Smaller Emerging Markets Still Shine in 2014

Risks outweigh opportunities for emerging markets in 2014 and major emerging markets have all seen their growth prospects revised downwards since January. However, smaller Asian and African economies including Chad, Rwanda, Mongolia and Myanmar will be the top performers and some economies including Peru and the Philippines will also put in a strong performance.

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July 27, 2014

Euromonitor to Speak at Vitafoods Asia 2014

VitafoodsasialogostrapcmykEvent Dates: September 3 (Wed) – September 4 (Thu) 2014

Event Description: Vitafoods Asia attracts more than 170 exhibiting companies and over 3,000 buyers from across Asia, especially Hong Kong, Singapore, China, Taiwan, Vietnam, Malaysia, Thailand, Indonesia, South Korea, Philippines, India, Australia and New Zealand.

Minji KimSpeaker: Min Ji Kim

First Presentation: September 3 (Wed) at 11:20 – 12:00 @ Asia World Expo Hong Kong

Presentation Title: Consumer Trends in Weight Management Asia: Challenges and Opportunities for the Industry

Presentation Description: Obesity is a growing concern in Asia Pacific, and weight management continues to be one of the buzz topics in the region. According to Euromonitor International, the region’s weight management market is dominated by China, Japan and South Korea. At the same time, South East Asian countries including Indonesia, Vietnam and India are showing fast year-on-year value growth and are expected to become key drivers of the weight management trend in the coming years. Although there are several factors that may saturate the weight management market in Asia Pacific, interest in getting slim will continue and further open up new opportunities. In this presentation, Minji Kim will address key trends, challenges and new opportunities of the weight management market in Asia Pacific.

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Euromonitor to Speak at 3rd ICIS European Butadiene & Derivatives Conference

ICIS_Logo_100HDate: 10th - 11th September 2014

Location: Westin Grand, Berlin

The Conference:
The 3rd ICIS European Butadiene & Derivatives Conference takes place in Westin Grand, Berlin this year on 10th and 11th September 2014. The 2013 edition attracted over 90 industry professionals from more than 64 companies representing 17 countries giving attendees the opportunity to network and learn simultaneously. This year, the conference will examine overcoming feedstock shortages, volatile market dynamics and reduced demand in an increasing global industry. Confirmed speakers include Versalis, Pirelli Tyre, Synthos, Euromonitor, Rubber Economy, Genomatica, Nexant, plus many more.

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In Focus: Income Inequality between Men and Women to Worsen in Asia Pacific

An HodgsonAnalyst Insight by An Hodgson - Income and Expenditure Manager

View An Hodgson's profile on LinkedIn

The gender income gap is a highly relevant consumer market barometer, one that companies cannot afford to ignore when assessing market potential and making business decisions at all stages, from market entry and product development to marketing and advertising. Women are already the key decision maker for many purchases within the household, and today’s modern female consumers with their rising incomes are driving a greater share of consumer expenditure. Euromonitor International forecasts that in 2030 the largest income gap between men and women will be in the Middle East and Africa, although Asia Pacific will be the only region with deteriorating gender income inequality in the period through to 2030.

Gender Income Gap.jpg

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July 26, 2014

Emerging Markets Among Highest Growth in Employment in Finance

Emi_employmentFinance-v1.2

Finance is a key sectors globally for producing top earning consumers who can afford luxury discretionary goods across all sectors of the consumer goods industry. While developed markets including Germany and the UK saw their employment in finance reduce from 2003-2013, emerging markets such as South Africa and the UAE are seeing among the biggest rises in this employment sector globally, from 2.8% and 1.1% of their total employed populations respectively in 2003 to 5.3% and 5.0% in 2013.

 

Have a question or a thought to add? Leave us a comment below.

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Grooming Routines Around the World

Emi_globalGroomingHabits-v1.2-01

A visual overview of grooming routines and consumer spending in 16 emerging and developed markets, including time spent grooming, body and face washing habits, hair care, oral care, spending on beauty and personal care products, and spending on oral care in particular. Draws on Euromonitor International's beauty and personal care sales data as well as its Personal Appearances survey (6,600 consumers surveyed online in 2014).

Download the Survey Results here

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Ichitan Group Paves the Way for Local Players in the Thai Soft Drinks Market

Euroasia_w.anuwong_LThumb With Warangkana Anuwong, Senior Research Analyst

 Ichitan Group PCL, a relatively new player in the soft drinks market in Thailand, was recently listed on the Thai stock exchange which not only cements the company's future in the industry but also adds even more competition to the dynamic soft drinks market in the country. Ichitan's success is driven by its low-priced ready-to-drink tea which is the only RTD tea product in the country labelled as organic so far. If Ichitan's success continues, the soft drinks market in Thailand will become even more polarized as local brands rise up to challenge international players.

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Shifting Power in the Beer Market

Amin AlkhatibAnalyst Insight by Amin Alkhatib - Alcoholic Drinks Analyst

View Amin Alkhatib's profile on LinkedIn

There is an on-going global economic shift in power from West to East, a phenomenon the beer market began to witness years ago. In 2002, according to Euromonitor International, China overtook the USA to become the leading beer market in terms of volume sales. However, in spite of this achievement, China still has some way to go before it can claim to be the world’s biggest beer market by value.

Following years of mid single-digit to low double-digit volume growth rates, the Chinese market boasted a volume size more than twice that of the USA in 2013. Yet, when it comes to value sales, China is yet to reach the dizzy heights of the USA. In 2013, the Chinese beer market was 79% the value size of the USA beer market in fixed USA dollar exchange rate terms, so is not too far off from overtaking it. In fact, Euromonitor International forecasts that by 2017 China’s beer market will grow by 45% and thus assume the leading position in value sales terms.

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July 25, 2014

Why US Still Trumps China in Personal Accessories Strategies

Sulabh MadhwalAnalyst Insight by Sulabh Madhwal - Personal Accessories and Eyewear Analyst

View Sulabh Madhwal's profile on LinkedIn

Owing to the emergence of several metropolitan cities and the subsequent appetite for luxury purchases in China, the country has been the undoubted growth driver of several accessories brands over the past five years. China overtook the US to become the largest personal accessories market by value sales in 2011, and since then has grown at a comprehensively faster pace. However, the US will continue to be the most influential market in the global strategies of most personal accessories players for three major reasons.

Consumer and Marketer Maturity

Nearly all personal accessories categories in the US have a highly evolved pricing structure. As such, the appreciation of private label, mid-priced, affordable luxury and high-end luxury brands is well defined among their respective target audiences. Fossil and JanSport are recognisable examples of mid-priced brands, while Coach and Michael Kors epitomise affordable luxury. On the other hand, most locally-based players in China tend to focus on economically-priced products, while international brands satisfy demand for high-end products. As a result, luxury players Swatch Group, LVMH and Richemont are the biggest international companies in China.

Continue reading "Why US Still Trumps China in Personal Accessories Strategies" »

Euromonitor to Speak at International Jewellery London 2014

IJL_LOGOS_2014Date: August 31 – September 2, 2014
Location: Olympia, London

Conference: IJL is the UK’s premier jewellery event, offering exclusive insight into the trends that will continue to drive the £1.2 billion UK jewellery market for years to come. IJL unites over 600 manufacturers, designers, gem suppliers and allied services with senior level quality buyers.

Discover the latest products and collections and gain insight into the latest trends. Network with the industry and expand your knowledge with our market leading seminar programme.

 

 

 

 

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Recent Posts

Smaller Emerging Markets Still Shine in 2014

Euromonitor to Speak at Vitafoods Asia 2014

Euromonitor to Speak at 3rd ICIS European Butadiene & Derivatives Conference

In Focus: Income Inequality between Men and Women to Worsen in Asia Pacific

Emerging Markets Among Highest Growth in Employment in Finance

Grooming Routines Around the World

Ichitan Group Paves the Way for Local Players in the Thai Soft Drinks Market

Shifting Power in the Beer Market

Why US Still Trumps China in Personal Accessories Strategies

Euromonitor to Speak at International Jewellery London 2014