Euromonitor International

Euromonitor International

October 26, 2011 12:45 ET

Urban Populations Are the Global Economy, Reports Euromonitor

CHICAGO, ILLINOIS--(Marketwire - Oct. 26, 2011) - A growing global transformation is underway with more than half of the global population now living in cities, and is expected to rise to 60-80 percent by 2050. Market research company Euromonitor International recently announced the publication of its new report, The Power of Proximity – The Complex Story of 21st Century Cities, examining the rise of cities and megacities (those with more than 10 million inhabitants), and the juxtaposition between excitement, safety, freedom, social connection, culture, inequality and political instability.

Euromonitor International's report indicates that the rise of urban cities is a story of the rising middle-class consumer. According to Euromonitor's report, worldwide there are three key levels of middle-class consumers: the emerging middle class, those living on US$2-12 a day; the rising middle class, those earning between US$13-50 a day and able to make daily choices about the goods they buy; and the mature middle class, those earning between US$50-150 a day and concentrated in the mature economies of the US, Western Europe and Japan.

Mature cities Rising cities Emerging cities
Examples New York, London, Paris, Berlin, Singapore, Sydney, San Francisco, St Petersburg Shanghai, Sao Paolo, Mumbai, Bangalore, Beijing, Moscow, Dubai, Qatar Lagos, Dhaka, Karachi, Jakarta, Hanoi
Characteristics 19th and 20th century industrial powerhouses - some are still strong (some are in decline) and trying to ensure their future success when manufacturing has gone Late 20th century powerhouse cities - rapid growth and urbanisation. Huge building and redevelopment,
major investment in infrastructure to maximise economic opportunities of globalisation
Powerhouses of the early 21st century - rapidly urbanising and influx of people but infrastructure (and industry) struggling to keep up - vibrant but often chaotic
Source: Euromonitor International

"The middle-class consumer has, over the years, changed what urban cities mean to the global economy. These cities are no longer just major contributors to economic growth, they are the global economy; with over three quarters of the world's GDP generated in cities," said Gina Westbrook, editorial director at Euromonitor International.

According to the report, Asia-Pacific witnessed the fastest increase of urban population in the last two decades and the next wave of urbanisation is expected to be in Africa and the Middle East. "The rapid rise of cities is exciting and yet it calls for a challenging balancing act," said Westbrook. "These cities require more resources, infrastructure, technology and a political system ready to meet the needs of varying income levels, demographic groups and cultures," she adds. "There are risks to increased demand, especially with consumption patterns increasingly mirroring those of mature markets. At these levels, a global population of seven billion could be equivalent to a global population of 72 billion, for example."

Euromonitor's report aims to explore the differences between mature, rising and emerging cities, looking to understand the different issues cities face and to cluster them around their different challenges. The report also follows urbanisation patterns in the following major markets: Brazil, China, Egypt, India, Indonesia, Japan, Mexico, Nigeria, Russia, Turkey, the UK and the US.

To view a ranking of the world's megacities and to read more highlights from the report visit:

http://blog.euromonitor.com/2011/10/the-power-of-proximity-the-complex-story-of-21st-century-cities.html

About Euromonitor International

Euromonitor International is the world's leading provider for global business intelligence and strategic market analysis. We have more than 39 years of experience publishing international market reports, business reference books and online databases on consumer markets.

We deliver market research solutions to support strategic planning for today's increasingly international business environment. Our research offers in-depth market analysis on consumer goods and services industries worldwide, as well as economic, demographic and socio-economic data and insight on countries and consumers.

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