5 Global Trends Unfolding Over the Next Decade
In an address by Muhtar Kent
, President and CEO, The Coca-Cola Co., he described five global forces that will unfold over the next decade. Although he is focusing on the beverage industry, these are trends that will impact many industries.
- A powerful shift in the epicenter of global economic growth. By the year 2020, the world’s economic power will radiate from many nations and not just a few. Despite the current economic woes, we’re going to see 20 trillion dollars of global GDP growth created in the next 10 years. Most of this will be in the emerging and developing economies of the world. In the next 10 years, we’re going to see a billion new consumers rise to the middle class.
- Rapid urbanization as people move to cities for opportunities. Today, the world’s cities are growing by 70 million people each year, and that will continue for at least the next decade. That’s the equivalent of adding a metropolitan area the size of Atlanta to the planet every 30 days for the next 10 years.
- A world wrestling with energy and resource scarcity. In the coming years, as wealth grows and consumer demand increases, we are going to be faced with constant scarcities and cost pressures. Demand for fuel, food and other commodities will expand significantly. This will have long-term cost implications for all of us. In a world of constant cost pressures, it is essential that we achieve a low-cost structure and that productivity is embedded in everything we do.
- A reset of consumer attitudes, values and expectations. Consumers worldwide are focused on value. They expect to engage with brands in a dialogue as opposed to a one-way monologue. They do not want to be told what to do. Today's consumers are dictating what they want... how they want it... when they want it... where they want it... and what price they are willing to pay. This is an important trend—and one that threatens to break the traditional distinction between buyer and seller that has been at the cornerstone of modern business and economics.
- An emerging new era of innovation brought on by these first four trends and fueled by sustainability imperatives. Most new breakthrough innovations over the next decade will spring from a world radiating economic power from multiple sources... from a world with more empowered consumers... and from a world where natural resource scarcity is the norm. New ideas and innovations will originate well beyond the four walls of a company. Innovation will be just as likely to come from customers, suppliers, and consumers. Innovations will be truly global. They will no longer just trickle down from developed to lesser developed nations. They will just as likely originate in emerging nations as well.
How will these trends impact you?