THE FUTURE OF CHILE:

DEMOGRAPHY, CONSUMER LIFE,

BUSINESS CONDITIONS

A World 2 country in South America, Chile has achieved real development and is
on the shortlist to transition to World 1 status. It has a high percentage of middleincome consumers, with sophisticated buying habits. Business conditions are
good, and the country is ranked highly in global lists of competitiveness .
POPULATION BY AGE GROUP
Chile is making the transition from a relatively young society to a middle-aged one
as it reaches a new level of development.

At about three-and-a-half million, the number of children will be stable, and will
decline as a percentage of the population.

The working-age population will show only slight growth.

The fast-growing segment will be Chilean seniors.

MEDIAN AGE:

Chiles median age is rising relatively quickly, and is at 32.1 in 2013.

Five years younger than Americans on average in 2013, Chileans will have made up
the gap by 2030, whenlike Americanstheir median age is projected to be 39.

This aging could exacerbate the countrys already severe obesity problem: 23% of
Chileans are obese, and Chiles childhood obesity rate is the sixth highest in the world.

URBAN POPULATION + POPULATION GROWTH RATE:

Like many Latin American countries, Chile is highly urbanized, with 90% of the
population living in cities. This percentage will increase only slightly in the next few
decades, to a forecast 92% by 2030.

Chiles population is growing only slowly, somewhat less than one percent per year.
This is expected to slow even further in the next few decades, dropping to 0.41% in the
2030s, when Chiles population growth rate may be even lower than the US.
Birthrates dropped from 2.6 children per woman in 1990 to 1.8 in 2011, below the
replacement rate of 2.1. This low rate has alarmed the government enough that it is
offering financial incentives for people to have more children.

BUSINESS IMPLICATIONS

Chile is a small but solid market, with 11 million consumers (65%) classified as middle
class, and more joining their ranks. With the projected increases in the size of the
middle class and growth in GDP per capita, as well as the countrys relatively high
levels of consumer sophistication, it should be an attractive station for consumer-facing
firms in coming decades.

As incomes rise, serving Chilean demand in the future will be about meeting more
advanced consumer needs rather than feeding an expanding market for basic
products.

Despite rising prosperity, Chile with its relatively high inequality displays some of
the typical emerging-market pattern of a market with numerous lower-income
consumers and a smaller segment that can live fully World 1 lifestyles.