Four billion people who live in relative poverty represent a $5 trillion market, according to a new report released by the International Finance Corporation and World Resources Institute.
The report, "The Next 4 Billion: Market Size and Business Strategy at the Base of the Pyramid," offers a first-of-its-kind measure of the size of markets at the base of the economic pyramid using income and expenditure data from household surveys. Coupled with the survey information is an overview of business strategies that have succeeded for companies working in these markets.
In its geographic analysis, The Next 4 Billion finds the following global BOP numbers:
* The Asian BOP market (including the Middle East) is by far the largest, with 2.86 billion people and a total income of $3.47 trillion, constituting 83 percent of the region's total population and 42 percent of the its aggregate purchasing power.
* Eastern Europe's $458 billion BOP market includes 254 million people, 64 percent of the region's population, with 36 percent of aggregate purchasing power.
* In Latin America the BOP market of $509 billion includes 360 million people, representing 70 percent of the region's population but only 28 percent of aggregate purchasing power, a smaller share than in other developing regions.
* In Africa, the BOP market is $429 billion, but it represents 71 percent of aggregate purchasing power in this region. The African BOP includes 486 million people -- 95 percent of the region's surveyed population.
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