Rising Wealth and Shifting Consumption Patterns
- Imagine a world where billions of people have lifted themselves out of poverty, joining a growing middle class.
- This transformation is reshaping global consumption patterns, driving demand for goods, energy, and food.
- But what does this mean for our planet and its resources?
Poverty Reduction: A Global Success Story
How Did We Get Here?
- Since 1990, global poverty rates have fallen dramatically - the number of people living in extreme poverty fell from nearly 2 billion (36%) to around 800 million (~10%).
- Economic growth, globalization, and technological advancements have played key roles in this progress.
Over 800 million people still live in extreme poverty (for less than $2.15 a day), highlighting the need for continued efforts.
The New Global Middle Class
Who Are the Global Middle Class?
- The global middle class includes individuals earning between 10 and 100 USD per day.
- This group is expanding rapidly, especially in middle-income countries (MICs) like China, India, and Brazil.
The middle class is a key driver of economic growth, as it increases demand for consumer goods and services.
NoteDon’t assume that all middle-class individuals have economic security. Many remain vulnerable to unemployment and underemployment, especially in the informal economy.
Shifting Consumption Patterns
Rising Demand for Consumer Goods
- As incomes rise, so does the demand for goods like electronics, cars, and appliances.
In India, energy demand is expected to double by 2040 as more households gain access to electricity and modern appliances.
Urbanization Driving Increased Energy Consumption
- As people move to cities and become wealthier, some barter services are replaced with market ones.
- This combined with industrialization, increased mobility and increased demand for goods has led to increased energy consumption.
Between 1990 and 2020 share of people living in urban areas in Vietnam doubled and at the same time energy consumption increased nearly sevenfold.
Dietary Shifts
- Middle-class growth is transforming diets, with increased consumption of meat, dairy, and processed foods.
