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Top Three Trends in Households

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Households worldwide are transforming due to demographic, economic and technological shifts. Ageing populations and smaller household sizes drive demand for personalised products and services. Consumers are particularly interested in devices and appliances that enhance connectivity and offer convenience, reflecting a trend towards customisation and efficiency. This article highlights opportunities arising from these global household trends.

Silver wisdom prevailsChart showing Global Households by Age of Head of Household

Silver wisdom will remain prominent in global households as the number of households led by heads aged 60+ will grow by 53% from 2023 to 2040. However, the senior segment will be strong not only in numbers but also in their purchasing power. Silver households, often financially stable and less burdened by debt, possess greater disposable income and can afford more discretionary goods and services.

One billion households will have heads older than 60 years in 2040, compared to 0.3 billion in 2000

Source: Euromonitor International from national statistics

As senior households expand, both challenges and opportunities pop up. Across industries, the ageing populace's growing emphasis on health and wellness is anticipated to drive demand for products and services tailored to their unique needs, ranging from specialised healthcare solutions to fitness and wellness offerings. Beyond health concerns, seniors are increasingly focused on self-fulfilment and maintaining active lifestyles, leading to a surge in digital adoption among this demographic cohort. Innovations like GrandPad's AI companion, Grandie, cater to these needs by offering user-friendly digital experiences for seniors. To capitalise on this growth potential, businesses should focus on delivering products and services tailored to the distinct needs of the ageing population.

Materialistic solo living

In 2023, single person households globally accounted for one fifth of all households. From 2023 to 2040, these households will grow by 48% in absolute terms, outpacing the growth rate of all other household types.

There were 484 million single person households in the world in 2023

Source: Euromonitor International from national statistics

This surge is underpinned by several factors, including changing attitudes towards relationships, independence and personal fulfilment. The single person households encompass a diverse array of individuals, each with unique needs, preferences and lifestyle choices. Despite the diversity, there is a discernible commonality among single person households – a shared preference for convenience-driven appliances and multifunctional products. This preference signifies a broader shift towards materialistic living, where individuals prioritise comfort, convenience and indulgence in their lifestyles. It is reflected in the growing ownership of durable goods within the top three countries with a significant presence of single person households.

Chart showing possession of durable goods by single person households 2023

Big homes, bigger bills

Chart showing Households by Number of RoomsIn 2023, the global count of dwellings with 5+ rooms surged to 595 million, with China, the US, Brazil, Indonesia and Japan leading the pack. The expansion of households with more rooms is fuelled by shifting demographics, urbanisation and a growing desire for aspirational living. Factors such as the rise of remote work, accelerated by technological advancements and the pandemic, have also contributed as individuals seek larger homes with dedicated office spaces.Chart showing House Orice Index in Top 5 Countries 2000-2023

However, bigger homes come with a higher price tag, as reflected in the upward movement of the house price index in the top five countries. This increase is driven by macroeconomic factors like demand-supply dynamics, inflation and increased credit accessibility.

Looking ahead, the growing number of households coupled with the desire for larger dwellings will continue to drive property prices upward, posing challenges for household budgets. This presents opportunities for companies offering financing solutions to help households balance their housing expenses and budgets. For instance, in the US, EasyKnock's acquisition of Ribbon, a property start-up, illustrates this trend, offering upfront financing for homeowners to sell and lease back their properties. Such companies catering to the demand for housing financing services stand to benefit in the future.

Read more in our report, Global Household Trends 2024, for in-depth analysis of households today, global outlook and rankings of key indicators.

This article was published in 2022 and has been updated.

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