Analyst Insight By Georgij Grebinskij - Research Analyst
Recently the Lithuanian Government agreed that in autumn cigarette packages sold in Lithuania will need to be marked with graphic pictures showing the dire health consequences of smoking. This is assumed to dissuade people from smoking.
Generally speaking, there is no clear evidence that graphic health warnings, however ugly, have a significant discernible impact on the behaviour of smokers. Taking into account that such law on graphic health warnings came into force in the neighbouring Latvia in 2010 it is likely that the potential effect of this law in Lithuania might be similar.
According to Eurobarometer research on Tobacco Packaging Health Warning Labels that took place in 2012, a number of respondents in Latvia agreed that textual warnings without graphical health warnings have much less impact. Reports also find that in Latvia, respondents talked about turning the pack over to avoid the shocking images. According to the same report, some respondents in Latvia find graphical health warnings less provocative over time.
Continue reading "Will Graphic Health Warnings on Cigarette Packages Dissuade Lithuanian Smokers?" »
We are excited to release new data on the global automotive industry that shows light vehicle sales grew 3.9 percent in 2014 to reach 85 million units and are forecast to exceed 100 million by 2019.
“Asia and the Middle East and Africa represent significant growth potential for small cars as rising incomes allow an ever increasing number of consumers to transition from a motorbike to owning a car for the first time,” said Neil King, automotive analyst at Euromonitor International. “Small cars are forecast to grow 3 percent compound annual growth rate (CAGR) between 2014 and 2030 but this is secondary to the projected CAGR of 4.7 percent for SUVs.”
Continue reading "Global Light Vehicle Sales Forecast to Exceed 100 Million Units in 2019" »
Analyst Insight by Hope Lee - Senior Beverages Analyst
As Massimo Zanetti Beverage Group SpA (MZBG, the owner of Segafredo) is listed in Milan, investors are perhaps eyeing other privately-owned Italian foods and beverages companies. Italian entrepreneurs are traditionally known to keep things within the family and public listing is often not considered a favourable option for the continuity of their businesses. However, the this mind-set is likely to change as many of these companies have started exploring international markets more aggressively to mitigate domestic slowdown. Here is a quick glance at the global growth markets which they could explore, and the state of play regarding the major Italian coffee players.
Continue reading "Major Italian Coffee Players Facing Crossroads" »
Analyst Insight by Daphne Kasriel-Alexander - Consumer Trends Consultant
As Singaporeans celebrate the Republic's Golden Jubilee this year, how are they preparing themselves for the future? What does the future hold against the backdrop of an ageing population and the passing of the country’s founding father Lee Kuan Yew?
SINGAPOREAN CONSUMERS TODAY
A nation of avid travellers
More than 90% of the Singaporeans surveyed by research firm Data Spark, a part of the country’s largest telecommunications company Singtel, have gone overseas either for business or leisure in the past year. The January study, which surveyed 1,694 Singaporeans’ travel habits, found that Malaysia, Thailand and Hong Kong are the top three destinations, with Taiwan and South Korea as the rising destinations. In line with Singaporean culture, shopping and food are the most sought after activities. 66% of travellers get information from online travel websites, followed by recommendations from family and friends. According to Euromonitor International data, Singaporeans are expected to spend US$6.5 billion on packaged holidays this year, an increase of 28.3% on five years ago.
Continue reading "Singaporean Consumers in 2020: A Look into the Future" »
Analyst Insight by Amin Alkhatib - Alcoholic Drinks Analyst
Cider/Perry has witnessed phenomenal developments in the last 10 years, making it now the fastest-growing alcoholic drinks category, in volume terms. In Cider/Perry: Outlook and Opportunities, Euromonitor International looks at some of the dynamics that are currently supporting its strong growth, and will continue to do so in the next five years.
One of the defining features of the category has been the internationalisation of cider/perry brands that have driven expansion beyond the UK and other markets that have historically consumed the tipple. The market has been segmenting and opening up to a wider consumer spectrum, from value-seeking to quality-pursuing drinkers. In addition, demand for “craft” in beer has spilled over into the cider/perry category, expanding the premium offerings. Cider/perry makers are also taking to the approach of product sophistication by positioning the tipple as a suitable alternative to wine, as observed in the US. The category is also witnessing the next stage of its evolution as it shifts towards niche areas covering white spaces such as “light cider” and “spirit-cider”, otherwise promoted as “spider”.
Continue reading "Cider/Perry: Adapting, Evolving and Growing" »
Analyst Insight by An Hodgson - Income and Expenditure Manager
The middle class in emerging countries has continued to grow and enjoy higher purchasing power since the 2008-2009 global financial crisis while middle-class households in many developed markets have had to cut back on their spending. Rising middle-class spending in emerging economies will create wide-ranging opportunities, but as the patterns of middle-class spending growth are diverse, companies will need to fully understand the target market and adapt their business strategies accordingly.
- Half a decade after the global financial crisis of 2008-2009, the fortunes of the global middle class remain mixed. Across the 85 major economies for which Euromonitor International has data, middle class households totalled 475 million in 2014, up from 430 million in 2008 at the start of the global financial crisis. However, 13 out of these 85 major economies have a shrinking middle class, and the decline is not restricted to developed economies;
- In a number of countries, where the middle class has expanded in size, middle-income households are not necessarily better off. For example, while Kuwait and the UAE have seen some of the world’s fastest middle class expansions, median household income in both countries fell at the fastest rates globally since 2008. This is because expanding middle class reflects improving income distribution while median household income is a proxy of middle-class purchasing power;
Continue reading "Changing Income and Expenditure of the Global Middle Class since the 2008-2009 Financial Crisis" »
Analyst Insight by Daniel Solomon - Economist
Despite the high probability of a Greek “No“ vote in the July 5th referendum, most likely followed by a default, the effects so far on Eurozone financial markets have been quite modest. Italian and Spanish 10 year government bond yields have increased by about 0.25 percentage points during the week of June 25th-July 2nd, and by about 0.2 percentage points for the whole month of June. Eurozone stock market prices declines have been moderate, with a one week decline in the Euro STOXX index of 3.6% as of July 2nd. Sovereign default probabilities for Italy and Spain have also barely increased, rising by less than 0.3 percentage points during the month of June according to Deutsche Bank estimates. These indicators suggest that financial markets do not see a large risk of contagion from a Greek default to financial distress in other Eurozone economies. Several fundamental factors support financial markets‘ assessment.
Figure 1: Major Stock Market Indices since June 25 (June 25 = 100)
Source: Euromonitor International from Yahoo! Finance and stoxx.com
Note: Euro STOXX Index represents 290 large, mid and small capitalisation companies listed on 12 Eurozone countries. FTSE 100 is a benchmark index for the UK, and SP500 is a benchmark index for the USA.
Continue reading "Contagion Effects of Greek Default Should be Limited" »
Analyst Insight by Carrie Lennard - Business Environment Manager
While other countries have fluctuated in the World Bank’s Doing Business rankings, Singapore has remained at the top spot for nine years, with consistently high performing rankings in all of the sub-categories that comprise its overall Doing Business ranking. Its business friendly procedures mean that it has arguably the most competitive business environment in the world, and its FDI intensity is one of the highest globally as a result at 21.4% of total GDP in 2013. Other economies should pay attention to the importance of cutting red tape for businesses in order to gain a competitive advantage.
Source: Euromonitor International from World Bank/ UNCTAD
Continue reading "Lessons from Singapore, Unchanged as Doing Business Leader from 2006 to 2015" »