APAC to become largest consumer market, private consumption to hit $36 trillion by 2035: Report

Asia Pacific is expected to overtake North America as the world’s largest consumer market by 2035, according to a joint report by Bain & Company and NielsenIQ (NIQ).

The report said private consumption in the Asia Pacific is projected to grow at a 7% compound annual rate to reach $36 trillion by 2035. Over the same period, global private consumption is forecast to nearly double, rising from about $65 trillion in 2025 to between $110 trillion and $120 trillion by 2035.

The findings point to a shift in where global consumption growth will come from, with changing spending patterns across the Asia Pacific expected to shape consumer markets from 2026 onward.

In the 12 months ended June 2025, fast-moving consumer goods (FMCG) value in the APAC rose 4%, supported by 2.8% volume growth and 1.2% price growth. This contrasts with North America and Western Europe, where growth has been driven largely by price increases. The region remains a key growth driver for global consumer packaged goods companies, though performance varies widely by market.

Commenting on the findings, Ravi Swarup, Partner and Consumer Products Practice Head at Bain & Company in India, said, ”We are seeing early signs of consumption revival across FMCG categories. This is not only true for categories that have seen a GST reduction, but also evident across a wider set of consumption categories that are seeing the tailwinds from income tax rationalisation, easing of food and commodity inflation, and overall improving consumer sentiment. While there is a consumption revival, the big unlocks expected are in penetration increase and increase in frequency of consumption, while the premiumisation trend will continue. Digitisation of the consumer ecosystem - across demand generation, demand fulfilment, and bringing efficiencies to the supply value chain.

NIQ data shows India gaining momentum, with FMCG value growth rising from 7.2% in 2024 to 13.7% in the first half of 2025. In contrast, growth in Southeast Asia slowed to 1.8% from 3.5% a year earlier. China showed early signs of recovery, with FMCG growth increasing from 2.8% in 2024 to 4.7% in the first half of 2025, led by online channels. South Korea’s growth has also been supported by expanding e-commerce. The divergence highlights the need for market-specific strategies, the report said.

David Zehner, head of the Asia Pacific consumer products practice at Bain & Company, said, “Asia Pacific is where the next decade of global consumption will be decided. The region’s opportunities, while vast, are uneven across markets, and companies need to understand local nuances while scaling to capture the full potential of the APAC region.”

Looking ahead to 2026, the report identified six forces shaping the region’s consumer landscape. These include the rise of multiple growth markets beyond China, diverging consumer preferences, increasing channel complexity, the growing strength of local brands, the need for scalable agility, and the expanding role of artificial intelligence.

Online channels continue to be a major growth engine, with e-commerce accounting for about 40% of FMCG sales in China and South Korea. Social commerce and quick commerce are also expanding. According to an NIQ survey, 39% of consumers in the Asia Pacific already use generative AI for online shopping, while another 40% said they are willing to adopt it.

Speaking about the report finding, Craig Houliston, Asia Pacific regional consulting and insights lead at NIQ, added, "In China, India, Indonesia, and Thailand, where adoption is higher than the regional average, over 50% of consumers are already using generative AI to help with their online shopping. "As Asia Pacific consumers continuously look for more convenience and affordability, we expect Generative AI to play a bigger part in empowering the shopper."

Elle Yang, partner at Bain & Company, said, “The APAC region is complex in nature. Consumer behaviors and channel dynamics are fragmenting faster than ever. Winning in this environment means having the courage to localize - adapting faster to market signals while building models that can scale across borders.”

The report recommends that consumer goods companies clearly define the role of each market, adapt offerings to local preferences, invest in new channels, and scale AI adoption using reliable data and consumer insights to support sustainable growth.