Vietnam will become the 10th largest consumer market in the world by 2030, with its speed of growth the fourth highest, according to an HSBC report released Tuesday.
By the end of this decade, Indonesia will overtake Brazil as the fourth-largest consumer market after China, India and the U.S. From the fifth to eighth will be Brazil, Russia, Japan and Mexico, the bank noted in a report named Asia's shoppers in 2030.
Bangladesh will rank ninth globally, Vietnam tenth, followed by Turkey, Germany, the Philippines, the UK and Thailand from 11th to 15th, respectively.
The fastest-growing market will be Bangladesh, which will overtake Germany and the UK by 2030, according to the report.
In terms of growth pace, second to Bangladesh will be India, followed by the Philippines, Vietnam and Indonesia.
Vietnam, Bangladesh, and India are expected to see the biggest increases in consumer spending in the decade 2021-2030. A rise of around 7.8% is estimated for Vietnam, 7.4% for Bangladesh, and slightly higher than 7% for India.
Over the next few decades, the world, Asia in particular, will undergo significant demographic shifts. Asia will become considerably older, wealthier and households will continue to get smaller. These changes will result in significant shifts in spending patterns across Asia, the report says.
In India’s case, the number of people who spend $2-20 a day is falling sharply, while that of those spending $21-50 is rising rapidly.
In China, more people are moving into the upper income bracket, which are people spending over $111 per day. By 2050, these high-end spenders will account for more than 35% of the total population.
In short, it is not the “rising middle class” but Asia’s “upper-middle class” that will be transforming consumer markets, the report adds.