The 28 Trillion Dollar Female Economy

The celebration of International Woman’s Day came to an end last month, with celebrations across the globe. This year the theme was inclusion. The potential of a gender equal world. A world free of bias, stereotypes, and discrimination. A world that’s diverse, equitable, and inclusive. A world where difference is valued and celebrated. It gave me pause to spotlight the growing influence of women in general, and as consumers in particular.

In 2009, an HBR article titled The Female Economy, spoke about the influence of women consumers. It said and I quote, “As a market, women represent an opportunity bigger than China and India combined. They control $20 trillion in consumer spending, and that figure could reach $28 trillion in the next five years. Women drive the world economy, yet most companies do a remarkably poor job of serving them, a new study by the Boston Consulting Group reveals. BCG surveyed more than 12,000 women from a variety of geographies, income levels, and walks of life about their education, finances, homes, jobs, activities, interests, relationships, hopes, and fears, as well as their shopping behaviors and spending patterns. While any business would be wise to target female consumers, they say, the greatest potential lies in six industries: food, fitness, beauty, apparel, health care, and financial services. Companies that successfully tailor their offerings to women will be positioned to win when the economy begins to recover.” This was in 2009.

It’s a well-known fact, that women make up most consumers across categories. Globally, women make up almost 80% of all consumer purchasing decisions. In the United States specifically, women are estimated to control anywhere between 70–80% of consumer spending. It’s important to note that women’s purchasing power and influence continue to evolve, influenced by factors such as economic empowerment, cultural shifts in diversity & inclusion, as well as changing societal roles. But women are not just consumers and influencers of products. They also control 32% of the world’s wealth.

WOMEN CONTROL 32% OF THE WORLD’S WEALTH

Women are amassing greater wealth and it’s likely to grow significantly over the next few years. From 2016 to 2019, women accumulated wealth at a compound annual growth rate (CAGR) of 6.1%. Over the next four years, that rate will accelerate to 7.2%. BCG’s analysis finds that women are adding $5 trillion to the global wealth pool every year, with the tally predicted to grow further.

Women, today, make up almost 50% of the U.S. working population and, when adjusted for self-employment, are the new workforce majority. This rise is also linked to education. As of 2019, almost half of the workforce female population ages 25–64 held a bachelor’s degree or higher, a figure that has quadrupled since 1970. In terms of population size too, the sex ratio in the United States statistically favors the females, although the gender gap continues to remain stable. In 2010, there were 7.43 million more women, a number projected to only decrease to 7.42 million by 2025. I wrote all about it in my article Lucky Me, A Woman.

Even with a persistent wage gap, these factors have led to a rather dramatic increase in women’s wealth. American women now control more than $10 trillion in assets, an amount expected to triple over the next decade, driven by a steady upswing in workforce participation, education and wage growth. Women are, increasingly, likely to be the primary breadwinner, financial contributor and head of household, making 85% of day-to-day spending decisions and 80% of healthcare spending decisions for the family.

So, how can companies gain from this wealth shift and growing influence of women? To begin with, look beyond consumer goods, beauty, health and fitness, education and financial technology. When thinking about the female consumer, perhaps, ask, “which industries are not influenced by the female dollar?”

1. Technology and Electronics: Traditionally male-dominated, the technology and electronics industry has seen a significant rise in female consumers. From purchasing smartphones, tablets, laptops, and other gadgets for personal and professional use, to the growing importance of technology in everyday life, women are actively involved in purchasing decisions, driving trends, as well as influencing product development in this sector.
2. Sportswear and Fitness Equipment: The rise of athleisure wear and the increasing emphasis on health and wellness have led to a surge in female consumers. Women are investing in activewear, athletic shoes, and fitness accessories for exercise as well as for everyday comfort and style. This trend reflects a broader cultural shift towards prioritizing health and self-care among women of all ages.
3. Financial Services: Women are increasingly taking control of their finances and making significant purchasing decisions. From banking and insurance to investment products and financial planning services, women are actively seeking solutions that meet their unique financial needs and goals. As women’s economic empowerment continues to grow, financial institutions need to recognize the importance of catering to this expanding market segment.
4. Home Improvement and DIY Products: Traditionally associated with male consumers, the home improvement and do-it-yourself (DIY) market has seen an increase in female participation. Women are taking on DIY projects, home renovations, and interior decorating with confidence and enthusiasm. 15 years ago, for my birthday, I actually gifted myself a Ryobi cordless automatic screwdriver kit, much to the amusement of the Home Depot reps. Home improvement stores Lowe’s and Home Depot report that half of their customers are women. These women initiate 80% of home improvement projects and, spend 50% more on purchases than men do. Women are driving demand for home improvement tools, decor items, and remodeling services, influencing the direction of this industry.
5. Gaming and Entertainment: The gaming and entertainment industry is experiencing a shift as more women become active participants and consumers. Women of all ages are playing video games, engaging with online gaming communities, and consuming digital entertainment content. Lenovo caught onto this trend as early as 2016. They were a client of mine and I remember how excited they were about reaching out to this increasingly influential demographic. Today, this growing female demographic presents opportunities for game developers, content creators, and entertainment platforms to diversify their offerings and appeal to a broader audience.
6. Luxury Retail: My favorite topic, luxury retail was synonymous with exclusivity and opulence, often targeting affluent male clientele. However, the tides have turned, and women now represent a significant and influential segment of luxury consumers. From high-end fashion houses to luxury accessories brands, women are not only driving sales but also dictating the direction of luxury fashion trends. Their discerning tastes, coupled with their increasing financial independence, have made them a formidable force in the luxury retail landscape.
7. Travel: The travel industry has also witnessed a significant shift in consumer demographics, with women playing an increasingly prominent role in shaping travel preferences and experiences. Whether it’s solo adventures, wellness retreats, or family vacations, women are driving demand for diverse and tailored travel experiences. They seek destinations and accommodations that prioritize safety, sustainability, and cultural authenticity. In fact, I just came back from completing the W-trek, in Torres Del Paine, Patagonia. For the rather difficult trek, I bought and invested in brands such as Arc’teryx,Cotopaxi and of course, Patagonia — the luxe brands of hiking! Travel brands that cater to these preferences and provide personalized experiences are poised to capture the loyalty of female travelers like me.

These are just a few examples of industries and product categories where women continue to emerge as large segments of consumers. They are challenging traditional perceptions and driving market dynamics in new directions. As women’s roles and interests continue to evolve, businesses need to take heed and tap into this increasingly influential consumer. Companies must move beyond stereotypes and outdated gender norms to truly understand and cater to the diverse needs and preferences of female consumers. This requires conscious inclusivity in product design, marketing campaigns, and customer experiences.

It’s time to listen, it’s time to adopt and adapt, it’s time to involve her. It’s time to remember that women now control 32% of the world’s wealth — a number that is only going to increase over time. Are you ready?

Anika Sharma is an accomplished technology consultant and global digital expert, recognized as №17 on the Top 50 Global Digital Thought Leaders & Influencers. With 20 years of experience in the CPG, retail, beauty, luxury and T&H space, with a focus on eCommerce and Data, she continues to lead, large-scale technology and digital transformation initiatives for both, brick and mortar and digital-first brands. Assistant Professor of Technology at New York University’s Stern School of Business and the trustee of the NYU union, Anika takes her passion for technology and digital to the classroom, teaching Digital Marketing, Digital Strategy, Mobile, Search, CRM and Social Media Strategy to students.

When she is not helping clients navigate the world of end-to-end technology and digital transformations, you will find her planting herbs in her garden, writing columns, meditating with her friends, swimming long laps, training for triathlons, hiking mountains and filling rooms with her resounding laughter.

Find her on LinkedIn @digitalanikasharma, X @TheAnikaSharma and ig @theanikasharma