Early consumer product winners in the developing world could score lasting gains

The developing world’s rapidly growing middle class, which includes about two billion people in a dozen emerging economies, spends $6.9 trillion a year. McKinsey research suggests that, during the next decade, their annual spending will rise to $20 trillion, a very big market indeed—twice current US consumption, in fact.

Such consumers will give early winners in the consumer product sector a chance to gain lasting advantages. Consider what happened in Europe and the United States at similar points in their development: in 17 product categories, McKinsey found that the 1925 US market leader remained the number-one or number-two player for the rest of the century. These companies include Kraft Foods (Nabisco), in biscuits; Del Monte, in canned fruit; and Wrigley, in chewing gum. To learn more, read “Capturing the world’s emerging middle class” (July 2010).

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