High youth population to boost developing Asia’s mass-market household goods sector

The sector will also be supported by the stable income growth in the region.

The high youth population in developing Asia presents an opportunity for growth for the furniture and furnishings segment in the region, coupled with the increasing income range, according to a report by BMI.

BMI said around 2.6 billion out of the 3.9 billion population of developing Asian countries is comprised of children and teenagers (0 to 19 years old), and young adults (20 to 39 years old).

The young adults’ disposable income often starts at a low base, thus they focus on spending at the lower-end pricing spectrum. They also move to their first homes or rental at this stage as they move to the cities for employment.

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“This creates opportunities within the lower end of the furniture and furnishings segment as consumers in this age bracket move out of home for the first time,” the report read.

“Spending on this category will be supported by brands such as IKEA, Nitori and Daiso Japan, all of which have a growing footprint across Developing Asia,” it added.

Meanwhile, several markets are expected to lower inflation rates in 2024 compared to 2023, which will result in the reporting of “healthy and stable income growth” in developing Asian markets over the medium term.

“Due to the low-income bases in these markets, this strong growth in income signals the rapid expansion of the middle class across Developing Asia, as consumers increasingly have the disposable income to afford shopping for household goods in formalised retail environments such as shopping malls,” BMI said.