The economies in countries like Brazil, India, China and Indonesia are expanding. As incomes rise, poverty is falling. Between 2000 and 2010, the number of people living in extreme poverty around the world was cut in half; five years ahead of the millennial development goal set by the United Nations.
As a result, access to health and education is improving and purchasing power is growing, putting consumer goods in reach, for the first time, of millions of low-income households.
Who are Deeper in the Pyramid consumers?
Low income consumers – those who have an income of about USD 2 and USD 8 per day, comprise about 1,8 billion people globally and are the proportion of the population referred to as “ Deeper in the Pyramid” (DiP) consumers.
This DiP segment is projected to shrink from 33% in 2015 to 28% by the end of the decade, according to research by Boston Consulting Group, and as DiP shrinks, the middle class grows. This would make DiP consumers the future middle class, and therefore, especially significant to business because by connecting with consumers and supporting them while they are in the lower income group, companies can become better equipped to meet their needs as their incomes increase.
Where the world’s DiP consumers are found
The vast majority of DiP consumers are in Asia, with about half living in India and China alone. As many as 535 million people live on between Euro 1.80 and Euro 7.20 a day in China, 460 million people in India, and 150 million in other Asian countries.
Although many Africans also remain trapped at the bottom of the pyramid, Sub-Saharan Africa is the next biggest DiP market, with some 249 million consumers. There are another 130 million in Russia and Eastern Europe, and 93 million in Latin America…