The Future of Urbanization: Identifying and understanding the future urban landscape
Summary
Urbanization can lead to improved access to clean water and sanitation facilities and social services. The growth in income levels due to a shift from agricultural employment to industrial and service-sector jobs will raise living standards. The 500 cities experiencing the largest absolute rise in GDP will contribute 76% of total global GDP growth between 2015 and 2025. Also, the 500 most populous cities will contribute 46% of total population growth between the same time periods.
Urbanization is the demographic transition from rural areas to towns and cities, and is an important characteristic of global population growth. Since 2008, more than half of the world’s population now lives in towns and cities. By 2050, this proportion is expected to reach almost 70%.
Despite the fast rate of global urbanization, some cities are shrinking. Surprisingly, some rapidly shrinking cities are capitals and other large cities with major economic clout in their home countries. The cities with the highest GDP per capita have a high degree of industrial specialization and industry concentration. These cities also have populations of less than 2 Million.
Tokyo, Chongqing, and Karachi will be the three most populous cities in 2025. A rise in middle-class consumers in regional terms will drive demand for the FMCG industries in Mumbai. Foreign brands must understand the cultural context to successfully target the new urban consumers. Almost 57% of the population growth in the 65-plus age category will take place in Asia Pacific. This translates into an increase of over 40 Million people in this age group among the cities covered in the region.
Between 2016 and 2025, global GDP in US dollar purchasing power parity (PPP$) will grow by $26tn which is more than 20%, with 500 cities accounting for over 80% of that growth, which translates into $21tn. Rapid urbanization is a tremendous driver to reach new consumers. Rising incomes and increases in living standards will boost demand for a larger variety of consumer goods, beyond basic necessities.
The report “The Future of Urbanization: Identifying and understanding the future urban landscape” is an extensive and detail-orientated report decoding the future of cities across the globe, mainly focuses on the opportunities and challenges arising as a result of the rapid urbanization currently occurring.
In particular, it provides the following –
– Provides detailed analysis of opportunities in these large, complex and discrete markets.
– Analysis of current and future trends influencing urban areas across the globe, and the opportunities within them across the major consumer-facing sectors.
Companies mentioned in this report: L’Oreal, Uber, M-Pesa, Carrefour, Apple
Scope
– Urbanization will continue at a rapid rate in the future, over 500 million more people are projected to live in the key 2,000+ cities in 2025 than in 2005. This creates huge urban growth; the 500 cities experiencing the largest absolute rise in GDP will contribute 76% of total global GDP growth between 2015 and 2025.
– Aging populations are an increasingly common issue, the population growth in the 65+ age group will outpace the growth of the under 15 age cohort across all regions covered by GlobalData Cities. Additionally, almost 57% of the population growth in the 65+ age category will take place in Asia-Pacific.
– Rapid urbanization creates a new consumer base and opportunities are numerous and varied among the growing number of cities. For example, while consumers in developed regions are becoming increasingly aware of environmental challenges related to over-consumption, new consumers in emerging regions will drive FMCG uptake.
Reasons to buy
– Urbanization is a fast occurring trend; notably the developing world is becoming ever more urbanized.
– Understanding the opportunities in these large, complex and discrete markets will provide huge growth opportunities.
– This report gives in-depth analysis regarding the current and future trends influencing urban areas across the globe, and the opportunities within them across the major consumer-facing sectors.
