Significant changes in the demographic landscape of Muslim majority countries are creating new opportunities for product/service offerings or creative marketing segmentations.
Leading these changes are the increasing occurrence of smaller family sizes, an aging population (both young adults and older), and the differing trends in urbanization.
According to the most recent Human Development Report, commissioned by the United Nations Development Programme (UNDP), the average births per woman in the 9 significant Muslim world economies (Saudi Arabia, Pakistan, Egypt, Indonesia, Malaysia, Iran, Turkey, UAE, Jordan) has dropped from an average of 6 in 1975 to 3 in 2005. This shows a change in family size and their unique household needs. Also significant is the fact that small households have the highest per capita income making them attractive target markets.
A recent demographic trend report on Saudi Arabia by TNS, showed the average family size there (all family members in household) as 5.2; with a fourth of all households being small (family size up to 3 members), a third being medium (family size of 4 to 5) and 40% being large households (family size of 6 or more). Significantly however, they showed that the smaller households had the largest growth in household income and were better educated.
Similarly, the Human Development Report also shows a decrease in the population under age 15 of the 9 major Muslim world economies (average drop of 5% in this age group as a % of total population by 2015) as well as a 3% growth in population over 65 during the same time period. The population’s age shifts could be seen as entrepreneurial opportunities as well as social challenges for governments.
Finally, within the 9 significant OIC economies, a further shift toward urbanization will provide unique opportunities as well. For example, in 2003 45.5% of the Indonesian population was considered urban but is expected to rise to 58% by 2015. At the same time the significantly remaining rural population in 2015 of countries such as Egypt (55%) and Pakistan (60%) will continue to provide opportunities within the highly agriculture based rural population.
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