Turkey, A Truly Potential Consumption Market in the Middle East

Turkey is considered to be one of the few markets in the world, with greatest consumption capacity. The facts to support this evaluation are listed below;

Demographic Trends and the Future of the Market

Although the rate of population growth slows down the economy is not expected to suffer any demand problems as the number of household that is directly related to the consumption and demand level is observed to be increasing faster. This increase creates a substantial additional demand for houses, cars, durable goods, household electronics and furniture.

Children’s Expenses Expected to Increase

Due to demographic reasons the number of children will remain steady while adults will increase in number. The income of families which was divided among 4-5 children will be shared by only 2 children in the close future. When more money will be spent for food, health and education, Turkey will gain a healthier and better educated generation. Education expenses will also rise in parallel with the quality of education

Increased Consumption of Younger Generation

The first generation of the republic devoted their lives to their children. Today’s generation however has a much greater inclination to see life as “Grasp the Day”.. According to the life philosophy of these people focus should be on “TODAY” and this only causes consumption increase to skyrocket. Substantial improvement in computer literacy and use of internet has further enhanced this fact. Consequently, the demand for the goods and services which meet the preferences of the young population is expected to rise steadily during the coming 10-15 years.

Growing Elderly Population to Create New Opportunities

The rate of elderly population is expected to rise but only to reach 10 percent even in 2030 and to get near the rates in EU around 2050. Slow but steady increase in elderly population would lead to growth in private pension systems. health services and expenditures will rise for the elderly.

Furthermore the increase in the number of working women will also contribute to the expected increase in consumption.

Finally the distribution of consumer spendings is expected to change. People will start spending more on housing expenses, consumer electronics. Leisure, holiday expenses are expected to rise, as well.

Currently, food has a 29,4 percent share in household spending.

15 March 2011