5. The future consumers are in the developing world
Manufacturing is entering a dynamic new phase. Over the next 15 years, McKinsey projects that 1.8 billion people -- mainly in developing economies -- will join the global consuming class, bringing the total number of people with disposable income to around 4 billion and raising annual consumption to $64 trillion. By 2025, we project that emerging markets will account for fully half of global consumption. These new consumers will demand everything from mobile phones to soft drinks, expanding markets for established manufacturers that can figure out how to compete for these new customers.
At the same time, scientific innovation will undoubtedly produce new kinds of products, change how they are designed and made, and enable companies to meet the needs of consumers and business customers more quickly, with more tailored products, and with new forms of after-sale service. Innovations in production methods will also likely enable manufacturers to make new goods with less material or with recycled material, thereby reducing greenhouse gas emissions.