Essential services for the short and long-term
Beyond the current crisis, preparing for the long-term future means integrating the world’s great transformations. Sodexo constantly fine-tunes its strategy by defining and analyzing major megatrends with demographic, social, environmental, economic and technological implications.
THE MAJOR CHANGES IN OUR MARKETS ARE AS FOLLOWS :
DEMOGRAPHIC CHANGES
Developed countries are faced with rapidly aging populations due in part to slow population growth and an increase in life expectancy. Meanwhile, developing countries are expected to achieve 18.5% average population growth between 2015 and 2030(1).
URBANIZATION
Rapid urbanization is contributing to the increase in GDP per capita, but the emergence of mega-cities (>10 million inhabitants) is creating enormous economic and social challenges. Urbanization projects are expected to be impacted in the short term but will continue to expand in the long term.
EMERGING MIDDLE CLASSES
Education and technology are transforming consumer modes and habits. The middle classes, whose purchasing power is on the rise and which will represent most consumers by 2022, are dedicating an increasing share of their budget to health and wellness, leisure and culture.
GLOBALIZED ECONOMY
Capital, information and talent are now interconnected, providing companies with new sources of growth. However consumers are also increasingly favoring local products and convenience services.
DEVELOPING ECONOMIES
Developing markets are creating wealth for millions of people. Their weight in the world economy is increasing due to rapid population growth – seven times faster than that of developed countries – and the rise of the middle class.
PUBLIC DEFICITS
Between now and 2030, heavy Covid-related public deficits will continue to strongly impact public policies and taxation. The weight of public debt should lead governments to consider more efficient ways to provide public services and to outsource certain services.
ENVIRONMENTAL ISSUES AND RESOURCE SCARCITY
8.6 billion inhabitants by 2030: the demographic boom is putting pressure on natural resources, heightening global warming and disrupting traditional consumer models. The Covid-19 pandemic has raised awareness of this issue.
EMPOWERED CONSUMERS
Consumers and clients now have unlimited access to information and expect personalized services and experiences. The current crisis has definitely accelerated this trend, empowering consumer communities.
DIGITAL TRANSFORMATION
The development of technology is disrupting the relationship between companies and users and generating new expectations. As the value of data grows, offering new insights and usages, companies are able to increasingly personalize their offering.
OWNERHIP VS. USE
Why buy if you can subscribe or rent? Collaborative platforms are revolutionizing business models and buying behaviors. The lower capital intensity of these business models can accelerate growth.
THE FUTURE OF WORK
Disruptive technologies such as artificial intelligence, robotics and the Internet of Things are all profoundly transforming the working world. To succeed, businesses must support employability and attract talent.
1 Roland Berger Trend Compendium, UN DESA.