Here Are 3 Critical Reasons Why You Must Keep Track Of Global Population Trends For Your Business To Survive

3 Reasons Your Business Should Keep Track of Global Population Trends
This entry is part 1 of 11 in the series Trend Alignment in Your Business

In this series, we’ll look at a diverse set of trends that your business needs to keep up with. With a globalized world, changes and large trends have a huge impact on your business.

The global megatrends discussed in this series may impact supply chains, availability of resources, and social or political situations – in your own backyard and on the other side of the world. In an increasingly dependent global business environment, such trends are important to monitor. The series is derived from the European Environment Agency’s outlook report and will cover the following:

  1. Global population
  2. Urban population growth
  3. Disease burdens and pandemics
  4. Technological change
  5. Economic growth
  6. A multipolar world
  7. Global competition for resources
  8. Pressures on ecosystems
  9. The consequences of climate change
  10. Environmental pollution
  11. Approaches to governance

Why stay on top of trends at all? If you’re not keeping track, your business runs the risk of becoming outdated. By staying on top of trends, your enterprise can learn to adopt sustainability practices. It’s important to both provide for today’s populations while taking into account the needs of future generations.

In this first post of the series, we’re keeping track of global population trends. Of all the things your business watches out for, global demographics probably aren’t on the list. However, it shouldn’t be ignored. Let’s find out why.

1. The world population will be very different in 50 years

The world population more than doubled between 1960 and 2015. It will continue to grow even more, although at a slower rate. The United Nations (UN) expects that the global population will reach around 10 billion by 2050.

Companies that rely on selling products to consumers need to understand how regional population growth affects them to make better business decisions. The best companies become resilient by considering how growing populations have impacts on their businesses.

On one hand, more people could mean more consumers. On the other, increased production could lead to increased environmental impact. If a business wants to succeed in the long-term, they must balance their own corporate sustainability.

Many businesses in many different industries are starting to incorporate sustainability into their value spectrum. A proper sustainability approach balances the needs and wellbeing of the present population with those of future generations.

2. More people and migration patterns mean a higher risk of environmental issues and climate change.

Understanding that the population is on the rise is just one aspect that affects sustainability. However, populations are also migrating – from rural to urban centres and from developing to wealthier countries.

Behaviours are changing, both in consumption and in land-use. Land that was once considered protected or rural is steadily being converted into urban landscapes. Industries like construction or manufacturing drive up land prices around the globe, making it difficult for small-to-average size agricultural operations to stay in business. Selling their land to capitalize on high prices is sometimes the best option for them.

On top of that, migration patterns result in populations migrating and settling to developed nations. The increased migration puts stress on resource allocations and access to settlement or social services. The effect is particularly large in urban areas, the destinations of many migrating peoples.

The net effects of changing land-use and migrating populations suggest greater exposure to environmental degradation.

3. With changing demographics comes changing consumption behaviour

Not only are global populations growing, but they’re also changing, too. Proportions of certain age categories create an intricate balance on consumer behaviour and industrial production.

For one, developing countries are experiencing a growing middle class. With a larger population having access to wealth and increasing their consumption behaviour, production and growth may become unsustainable.

The increased demand for various common goods means that natural resources will be consumed at larger rates. The world currently runs on oil and fuel-consuming machines and transportation. If a growing global middle class wants to consume more goods, shop online, and provide greater services for their families and livelihoods, the total effect could be hazardous to the sustainability of the earth’s ecosystems.

Youth patterns are changing, too. The least-developed nations reached a peak in the share of 15-24-year-olds in 2005. In the coming decades, particularly in the sub-Saharan African and Middle East regions, an immense proportion of young people will require adequate employment opportunities.

A lack of opportunities and access to resources could result in conflicts and more migration patterns that see young people migrate to more developed nations or compound the rural to urban migration. Each scenario has its own effects on how industries grow, attract, and retain workforces (and consumers).

Demographics and your business

 Sorting out the changes to global demographics, and what they mean for your business, is no small feat. In many cases, the effects seem to counter-balance.

That’s why this global population megatrend has been labelled a “diverging trend”.

Imagine that Earth’s population is heading down an open road toward growth and expansion. There are forks in the road and some of the paths diverge and head in new directions.

The paths are different between regions, age, and gender demographics. Each new road has unique challenges both for public policymakers and business owners.

To stay on top, the best way is to tune in to the demographic trends that most affect your business. If you haven’t identified your target demographic yet, it’s time to. Honing in on a specific age, culture or gender that your business relies on for growth will only become more important as the population grows.

For others looking to expand to new markets, demographic trends offer a unique insight to how regions change. By studying the trends, you can stay ahead of your competition and make better business decisions by targeting regions that will yield the highest returns for your investments. You’ll get insight about how large or young the workforces are, income levels and wage rates as well as the hidden secrets about where people are migrating.

Each element can offer your business an advantage – not only to thrive in today’s world but also to set up your company for continued sustainability.

There’s plenty more to come in our series of global megatrends that affect your business. Next, we’ll take a closer look at the impacts of an increasingly urbanized world.

Series NavigationWhat An Urbanised World Means for Our Innovation Outlook In Business >>
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How useful the information that I have got here is how global trends can have a big impact on a business to survive. 3 critical reasons that must be kept track of in new product development in order for a business to survive.

one of the factor to consider is to know that more people and migration patterns mean a higher risk of environmental issues and climate change. As such one should create ideas that will be tailored toward it

Companies should continuously create ideas that jive with the current business situation in their given communities, countries, and on a global scale, depending on their size and ambition. It is a rough road ahead, but given enough time and preparation, any company will be able to get through without a lot of problems.

As for me this can be both a good and a bad thing. For one population equates to man power which every economy must have. This makes idea generation easier but at the flip side it also presents a lot of issues. In my country for example more people meant more need for resources. A thing that a progressive nation can handle better.

There are many myths of innovation but there are also realities to keep in mind, as the global population trends. They have the power to impact business, and it’s necessary to consider them and keep update to follow the dynamic and don’t let your business become obsolete.

There is a lot to learn form the trend nowadays. Idea commercialisation is another thing that need to be discussed to let in a more successful idea.

This is an article is very realistic and helps us to solve future problems, the first thing to do is create environmental awareness so that people are more reasonable.

There’s really a need to follow population trend when trying for
idea generation. It will help a company meets up with the demands of the people

This is so spot on. Companies and networks need to create ideas based on trends, demographics and research. Knowing what your company brings to the table and which audience it will speak to has major benefits for staying prominent as the population continues to grow. Outdated information and staying out of touch with market values is a sure way to fall down the ladder.

Indeed global population trends should be well understood if we are to tweak innovation to conform to it. The article is very informative. Thanks.

I can see how global population trends can impact new product development. Very interesting read.

The dynamic nature of the population makes it necessary to change product design every now and then. A good business is one that adapts with the times.

Coming up with a sustainable model for a business is the problem solution to the uncertainty caused by population trends. I recommend it for all businesses.

Green energy solutions should be a standard in physical product development. That will give humanity the best chance of surviving.

I won’t be surprised to see idea generation increase in the coming years. We are at a need for ideas to cope with global population trends.

The ever changing population makes it imperative for businesses to change the way they create ideas constantly. It’s a very dynamic business world.

The changing demographics makes the creation of new product ideas quite a challenge. Thank God for Innovolo!

Idea commercialisation is very different to what it was a decade ago. This is all thanks to the ever changing population trends.

Like in most places, innovation in Cornwall also faces challenges due to population changes. Thank you for the eye opening article.

New product development in the UK will be better placed if it takes into account the global population trends. The government should step in and help with this.

Problem solution to this point is really great. If one comes up with a great idea to resolve everything is really great.

Would love your thoughts, please comment.x