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The Next Billions: Unleashing potential at the “base of the pyramid” (BOP)
 The opportunity at the BOP
Globally, 3.7 billion people are largely excluded from formal markets. This group, earning US$ 8 per day or less, comprises the “base of the pyramid” (BOP) in terms of income levels. With an annual income of US$ 2.3 trillion a year that has grown at 8% in recent years, this market represents a substantial growth opportunity.
While it is highly diversified, much of the BOP represents a fast-growing consumer market, an underutilized productive sector, and a source of untapped entrepreneurial energy. Engaging the “next billions” at the BOP as producers, consumers and entrepreneurs is therefore key to both reducing poverty and driving broader economic growth, for communities and the private sector.
Investing in pro-poor agricultural production and markets is especially essential for poverty and hunger reduction among the billions of poor people who survive on less than $2 per day.
Highlighting scalable business models
In 2008, the Forum initiated a new project to assess commercially viable business models that can improve livelihoods and strengthen food value chains in poor regions – and to define the actions needed to scale up such approaches. This project was conducted in partnership with the Bill & Melinda Gates Foundation and the Boston Consulting Group, and championed by the Consumer Industries community of the World Economic Forum. It combined insights from three cross-industry, multi-stakeholder regional roundtables (in Africa, Asia and Latin America) with a broad research survey and collection of over 200 case studies, synthesizing the results into two reports.
Next Billions Reports launched in January 2009
On January 30, 2009 at the World Economic Forum Annual Meeting in Davos, the Forum launched the two reports resulting from this project:
The press release for the report launch can be viewed here
The Next Billions: Unleashing Business Potential in Untapped Markets
This report outlines business strategies for effectively engaging the BOP across all industry sectors.
 Full Report I Executive Summary I Press release
The Next Billions: Business Strategies to Enhance Food Value Chains and Empower the Poor
This report focuses on business models along the food value chain -- from agricultural production through food processing, retailing and consumption – outlining innovative strategies companies are using to do business in poor regions while imrpoving incomes and food supplies in partnership with local communities.
Full Report I Executive Summary I Press release
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The “BOP” and the “Next Billions”
“Base of the Pyramid” (BOP) is a collective reference to 3.7 billion people populating the lowest income strata in the world. The income levels for this group range from 0 to a maximum of US$ 3,000 per person per year (in 2002 PPP$), or roughly US$ 8 per person per day.
Within this group are the “next billions” – a large group of consumers, producers and entrepreneurs who can be profitably engaged or served by business, albeit with new and innovative approaches.
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For more information on this project, please contact:
Lisa Dreier, Director, Food Security and Development Initiatives at lisa.dreier@weforum.org
Jennifer Baarn, Project Manager, New Vision for Agriculture Project, at jennifer.baarn@weforum.org
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