47 pc Indian households likely to be childless by 2040: Euromonitor International

Despite the rise in childless households, Euromonitor International says Asia Pacific to be the largest family hub by 2040

A recent report by Euromonitor International warns that the number of single and childless households is becoming higher around the world, leading to a serious impact on different industries, including baby food, diapers and baby products. It says that globally there are 1.3 billion households without children in 2023 and by 2040 this number will rise dramatically as two out of three households across the world will be childless, with China, United States and India amongst the worst hit.

The report says that in China the number of single person households will double to 273 million by 2040. Despite the rise in childless households, Euromonitor International says that Asia Pacific is projected to be the largest family hub by 2040, home to over 54 pc of global households.

Euromonitor International says that demographic, economic, and cultural factors are reshaping the longstanding family stereotype. The family unit is becoming smaller and with fewer children. Single-person and one-child homes are on the rise and must be catered for by brands. ‘‘This snapshot seeks to highlight the changes in households over 2023-2040 in terms of demographic structure and income but also lists the top five strategies to address future families,’’ it says.

Interestingly, only four countries,  Azerbaijan, Indonesia, Uzbekistan and Vietnam, will retain the average household size in 2040, while Pakistan, although facing a decrease in family members, will still boast the most populous households of six persons. The report says that brands should pay close attention to these markets and understand the unique characteristics and preferences of these and other Asian families.

According to the Euromonitor International Voice of the Consumer: Lifestyles Survey 2023, families with children were much more concerned about the rising cost of living  and were constantly searching for convenience. It adds that these consumers are also more conscious of green behaviour and sustainability, given their focus on the wellbeing and future of their children.

It adds that by 2040, Asia Pacific residents aged 60 and above will make up the largest cohort of consumers across the region. The ageing senior population poses a major threat to economic growth that few countries are addressing adequately. More retirees means fewer workers and increased pressure on healthcare and the pension system. Reduced consumer spending will impact overall expenditure, challenging businesses and service providers. In this context, the challenges may be especially steep for India, which has overtaken China as the country with the largest population.

‘‘Nearly 1 in 2 or 47 pc of all Indian households will be child free in 2040. From 2023 to 2040 households without children will experience a growth of 49 pc. This can be attributed to factors like rise in single person households, delayed marriage and child births and couple deciding to have smaller families. Concerns over financial stability, employment, healthcare, climate change and individualistic and experimental lifestyle aspiration are other factors contributing to child free households in India,’’ Anjali Jain, Research Consultant at Euromonitor International tells Media India Group.

Jain adds that single person households are 4.87 pc of all Indian households in 2023 and will account for 4.93 pc in 2040. This is growth of 18 pc.

‘‘The single person households are becoming prominent social structure which is propelling the government to act for the benefit of citizens. For example, in July 2023, Haryana government announced that unmarried people between the age of 45 and 60 years will be given a monthly pension of INR 2,750, if their income is below INR 180,000. Widowers and widow in the same age group are also applicable to get the pension if their annual income is under INR 300,000,’’ says Jain.

On the question of ageing of the Indian population, Jain says that the median age of Indian population is 29.5 years in 2023 and will be 35.8 years in 2040. While the share of young adults, aged 18-29 years, will decline from 21 pc of population in 2023 to 17 pc in 2040, the share of mid-lifers, aged 45-64, will increase from 20 pc in 2023 to 24 pc of total population in 2040, making them the biggest cohort.

‘‘Despite that, India will have the biggest population of young adults in the world, which contributes to a large working population and consumer market,’’ says Jain.

She adds that while 87 pc of households are expected to own homes in 2040, possession of colour TV would rise from 71 pc in 2023 which will reach 83 pc in 2040, possession of refrigerators expected to increase from 42 pc to 60 pc, washing machines from 22 pc to 41 pc in 2040.

‘‘This can be attributed to favourable developments like increasing availability of electricity and water supply as 100 pc of the households are expected to have electricity and 57 pc of households to have water supply in 2040. The increasing accessibility to household facilities will contribute to sales of consumer durables and devices which allow consumers to ease domestic chores, increase productivity and stay connected,’’ adds Jain.