12 global root trends identified by Future Value Chain 2020

1. Increased urbanisation and the rise of megacities will impact the size of stores, logistics and the supply chain.
• 2. Aging population will have economic and political consequences related to the amount of money spent on necessities like food and drink.
• 3. Increasing spread of wealth will lead to a growing middle class in developing regions, impacting consumption.
• 4. Increased impact of consumer technology adoption will be reflected in consumer behaviour.
• 5. Increase in consumer service demands will define new service models, offered via the Internet.
• 6. Increased importance of health and wellbeing will have significant ramifications as sales of healthful products and services are expected to nearly quadruple in the coming five years.
• 7. Growing consumer concern about sustainability will lead consumers to look to governments and companies to play a major role in combating climate change.
• 8. Shifting of economic power to countries like China and India will cause trade areas to evolve and a new generation of globally competitive companies from these developing markets to emerge.
• 9. Scarcity of natural resources like energy, water and food will become a growing issue as demand is projected to outstrip easily available supplies over the next decade, resulting in increasing production costs.
• 10. Increase in regulatory pressure will be seen particularly for hot-button areas like the environment, sustainability and food safety.
• 11. Rapid adoption of supply chain technology capabilities will enable a more synchronized value chain with greater visibility and traceability.
• 12. Impact of next-generation information technologies like cloud computing will lead to a new way to deal, jointly, with business and technology in the consumer goods industry.