Excerpts from the Globe & Mail article of Fri. Oct. 1 2010 : World’s emerging middle class: An all-consuming passion by DAVID PARKINSON

A MARKET BIGGER THAN THE U.S.

In a recent research report, consulting firm McKinsey & Co. argued that companies that can tap into the rapid growth of the middle class in fast-evolving emerging market economies could benefit for decades to come.

“The rapidly growing ranks of middle-class consumers span a dozen emerging nations … and include almost two billion people, spending a total of $6.9-trillion [U.S.] annually,” researchers David Court and Laxman Narasimhan wrote. “Our research suggests that this figure will rise to $20-trillion during the next decade – about twice the current consumption in the United States.”

The bulk of the population in these markets remains in the “deprived” category – annual household incomes below $13,500. But more than one-third of the population is now either middle or lower-middle class, and they are accounting for 55 per cent of all consumer spending.

As these economies continue to mature, more people in the “deprived” column are destined to move up into the middle classes, expanding this massive consumer base.

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