Meet the European Customer

2030

Raf Vlummens, MFin, CRA

October 24, 2014

Europe 2030• 27 states

• 510 million potential consumers

• 25 % of the world import activity

• 5 EU countries in the global top 10 importers– Germany, France, UK,

Netherlands, Italy, Belgium

Europe 2030

Europe 2030

• Three fundamental trends

• Demographic change• Societal change• Economical changes

Europe 2030

• Demographic changes

Europe 2030

Europe 2030

• Ageing is a combination of:

• Increasing longevity• Lower fertility• Aging of the large ‘baby-boomer’ generation

Europe 2030

• Impact of demographic change (France)

1980 2007 2030

Number of households 19 million 27 million 33 millionAverage age individuals 36 y/o 40 y/o 43 y/oAverage household members 3.3 2.6 2.5Average number of children 1.1 0.8 0.8

Europe 2030

• Demographic changes will have economic implications

• Effect on GDP (lower productivity)• Impact on the purchasing power• Impact on the consumption

• More than 50% of the French households will be headed by a 55+

Europe 2030

• Pressure on household consumption• Pressure on household income (pension instead of salary)• Fragmented families (singles, one parent families)

• Consumer segments will shift fundamentally• Mature consumer segment will dominate (55 +)

• By number, not by income• Prime earners (40-59) will remain important

• 40% of all the consumption in 2030

Europe 2030

Europe 2030

• Market segmentation

Bachelors

Newly married, no kids

Full nesters #1 : youngest child < 6 y/o

Full nesters #2 : youngest child > 6 y/o

Full nesters #3 : older couple, still working, with still kids at home

Empty nesters #1 : older couple, no kids at home, still working

Empty nesters #2 : older couple, no kids at home, retired

Europe 2030

• Businesses need to cater to new segments • Different needs • Priorities

Europe 2030

• Flight to value• Customers become more cost-consciousness

• Health & Wellness• Healthy lifestyle

• Communication• Virtual communities• Targeted to ‘baby-boomers’

• Convenience• Smaller families• One parent families• Higher participation of woman

• Digital connectivity

Europe 2030Know your market!

Europe 2030

• Export opportunities

• European consumers are

– thirsty for new experiences– exotic flavors, designs– experiences, open for foreign cultures

Europe 2030

• Fruits, vegetables• Fresh- logistics?• Processed (why not selling buko salad in Europe?)

• ‘Exotic’ origins for daily products ‘tell the story…’• Coffee• Chocolate

• Fish and Seafood

Europe 2030

Europe 2030

• European market will be under pressure in the next decades

• Still enough market potential for export of products:• Innovative• Quality• Customer needs focused

• Market intelligence = Export success!

Thank You