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Chinese women will be the main drivers of an expected $5.3 trillion boom in consumer spending over the next decade as their incomes rise, UBS Group AG said.
Consumption growth through 2030 will be 80% driven by expansion in women's income, Christine Peng, head of Greater China consumer sector at UBS Global Research, wrote in a report Friday.
“We forecast Chinese women to have the most impact on China's consumption growth,” Peng said. “We expect the effects of the significant progress in Chinese women's education in the past 20 years to materialize, improving their social standing, particularly their status in the workplace.”
The estimated jump in household consumption in the next decade means China will contribute about 27% of global consumption growth by 2030, UBS forecast. That compares with a projected 19% for the U.S.
Improving finances for women in China along with the rising share of single-person households, could also shift the consumption structure in the country, with more spending in sectors such as pets, healthy food and beer over other traditional consumer sectors, Peng wrote.
“This should benefit international companies in luxury, cosmetics, sportswear, beer, auto, travel, lodging and leisure,” she said.
However, higher education levels among women could negatively impact consumption growth, the research finds, suggesting females tend to invest more of their incomes.
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With assistance from Bloomberg
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