Cities now drive 50% of global spending: report

Mid-sized cities will see the highest spending growth over the next five years.

Cities now account for 50% of total global consumer spending whilst occupying just 0.4% of the world’s landmass, emphasising the need for businesses to adopt targeted strategies to remain competitive, according to World Data Lab.

The report showed that whilst major metropolitan areas remain dominant, mid-sized cities with populations between 1 million and 5 million are expected to see the highest spending growth over the next five years.

Smaller cities with fewer than 1 million residents are projected to grow at an even faster rate, making them crucial markets for future business expansion.

Spending patterns also vary significantly between cities, demonstrating the limitations of a national-level approach. For example, per capita spending in New Delhi is expected to reach $3,244 by 2025, nearly 80% higher than India’s national average.

In some cities, housing and food account for the majority of expenditures, whilst in others, transport and leisure spending take the lead.

By 2035, Cairo, Dubai, and Dhaka will join the top 50 global spending cities. Five more, including Addis Ababa (Ethiopia), Tbilisi (Georgia), and Zhuji (China), will surpass $10b in annual spending by 2030.